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Why Investors Shouldn't Be Worried About American Airlines' Traffic Dip

On April 10, American Airlines Group (NASDAQ:AAL) reported traffic results for the month of March and the first quarter of 2015. To put it the way it is, the figures were unimpressive. The company reported that its total revenue passenger miles (RPMs) for the month of March declined by 0.6% compared to March 2014. What's more discouraging about the report is that there were no year-over-year improvements in any of the metrics reported in the press release on a quarterly basis. This might go some way to discourage investors considering that a major analyst in Deutsche Bank recently downgraded its rating of the company. However, here is something that should give investors hope regarding the future of the airline

My bullish stand about the future of American can be traced to its merger with US Airways. As you probably already know, the merger makes American the biggest airline in the world - by traffic. With the FFA recently issuing the two airliners a certificate to operate as one airline, I believe that we're gradually moving towards the time when we will start seeing the full benefit of the merger. Read more