American Airlines Group (NASDAQ:AAL)

CAPS Rating: 2 out of 5


Player Avatar Allstar13913 (99.84) Submitted: 2/8/2013 11:03:45 PM : Underperform Start Price: $14.81 AAL Score: -206.19

There is no way a merged American Airlines and US Airways is profitable in the near term. When United and Continental merged in 2010, they spent almost $3B and 2 years later the merger hasn't been completed.Additionally, US Airways will have to raise their wage scale to American Airlines, which will hurt profitability. While a merger would create a better network and might position US Airways to a better future, I doubt it will make money.

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