American Airlines pilot agreement ‘mixed result,’ says Citi

Citi analyst Stephen Trent says American Airlines’ new agreement with its pilots “seems like a mixed result for the carrier.” The agreement could materially reduce American’s risks associated with labor strife and staff availability issues around flight operations, the analyst tells investors in a research note. However, the operational cost increase is not insignificant, and occurs at a time when domestic booking curve momentum is moderating, at least over the short term, says the firm. It keeps a Neutral rating on the shares with a $17.50 price target.