American Airlines (AAL) is teaming up with Indian airline IndiGo to make it easier to travel to India. A codeshare agreement inked between the two airlines will allow American Airlines customers to access 29 new domestic routes in India. AAL shares fell 0.19% to close at $21.43 on September 29.
Together with its subsidiaries, American Airlines operates network air carriers. It provides air transport services for passengers and cargo.
The codeshare agreement is subject to regulatory approval by the U.S. and Indian governments. The agreement could come into effect as early as next month when American Airlines will launch a new route between New York (JFK) and Delhi. The U.S. airline will also offer a new service between Seattle (SEA) and Bengaluru starting January 4, 2022. (See American Airlines stock charts on TipRanks)
“Whether our customers are traveling for business or pleasure, this new partnership makes it easy to reach all four corners of India,” said Vasu Raja, American’s Chief Revenue Officer.
Members of the American Airlines loyalty program stand to earn miles when using American Airlines codeshare flights operated by the Indian airline. Passengers traveling in American’s Flagship® Business cabin can take advantage of IndiGo partner lounges.
Additionally, Indigo expects the strategic partnership with American Airlines to spur economic activities in the trade and tourism industries.
Recently UBS analyst Myles Walton reiterated a Sell rating on American Airlines and lowered the price target to $14 from $15, implying 34.64% downside potential to current levels.
Consensus among analysts is a Hold based on 3 Buys, 6 Holds, and 2 Sells. The average American Airlines price target of $21.06 implies 1.73% downside potential to current levels.
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