Just days ago, we heard about United Airlines’ (UAL) plan to pursue the well-to-do traveler, a move that was likely a response to economic conditions that left air travel out of the picture for a lot of people who were more focused on buying eggs than airline seats. But United was not alone here, and American Airlines (AAL) is now planning a similar move with suites with sliding doors. That gave American a huge tailwind with investors, as shares shot up over 5% in Friday afternoon’s trading.
Back in September 2022, American first revealed its new designs, including the sliding-door suites for the business class traveler. American had hoped to get these airborne last year, but ran into supply chain problems like just about everybody else. The new seats, and suites, will be mostly for flights to London, including Chicago to London and Philadelphia to London starting August 6. An upgraded plane from Dallas Fort Worth to Brisbane, meanwhile, will appear just ahead of Halloween.
Those interested in such amenities will do well to brace for sticker shock; the Flagship business class flight that offers the suites, leaving August 11 and returning August 18 from Philadelphia will run $5,342 for a ticket. American also plans to upgrade its wi-fi service for loyalty program members as well.
Ramping Up Chicago Service
While the new high-end cabins will apparently not be making it to Chicago any time soon, American does plan to run some new flights out of O’Hare International Airport, to hopefully catch some new business. Many of these will be warm-weather destination tourism spots, reports note, including the Caribbean and Central America.
Destinations include St. Maarten in the United States Virgin Island, Guatemala City in Guatemala, and Costa Rica’s San Jose. Guatemala will be available all year, but the rest will be seasonal, available during the winter months to provide a warm-weather getaway that can be all too welcome in Chicago.
Is American Airlines Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAL stock based on eight Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 23.54% loss in its share price over the past year, the average AAL price target of $13.82 per share implies 30.93% upside potential.
