Buy American Airlines Shares: The Guide To Investing with the Best Brokers
Published: 26 August 2020 by Valentina
We are talking here about the largest US airline, a giant of the skies. Given the current share prices, it is normal for you to want to buy American Airlines shares, considering their “discount”, right?
Yes, the shares are “cheap”, but before deciding whether to make an investment in American Airlines, it is necessary to analyze the company, its financial situation, and its future forecasts.
We will try to give you all the information in this detailed guide. However, first, we want to present you the best brokers to use for your investment. Better to use an intermediary without commissions, but at the same time safe and regularly authorized.
Here is a short list of the best online brokers (all with CySEC or FCA license), where you can buy American Airlines shares without paying commissions. By choosing eToro, you can also make automatic investments.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy American Airlines Shares: History
American Airlines has developed over the years from the merger of around 85 airlines. The first were two historic companies: Robertson Aircraft Corporation and Colonial Air Transport in 1921.
In 1929, these airlines were brought together under a holding company, the Aviation Corporation, which was reorganized as an operating company and renamed American Airways, Inc. in 1930.
The airline expanded significantly from the 1970s to the 1990s, moving from an essentially “domestic” American airline to an international airline that reaches the Caribbean, South America, Europe, and the Pacific.
In early 2013, American Airlines agreed to merge with US Airways creating the largest U.S. airline.
The new American Airlines Group, Inc. holding was listed on NASDAQ on December 9, 2013, the day the merger began.
How to buy American Airlines shares
In order to buy American Airlines shares without paying commissions, it is necessary to rely on online brokers that offer CFDs (contracts for difference).
In this way, you can learn to invest with little money without the fear that the profits will be canceled by the onerous commissions required by traditional banking operators.
CFDs are derivatives that have the same price as the asset they are quoting and allow you to invest upwards or downwards and earn (if the forecast is correct) in any market scenario.
In addition to the commissions, the choice of the broker should be conditioned by the license: Do not consider unlicensed intermediaries.
Buy American Airlines shares with the best brokers
The license is not just a piece of paper but it means that the broker respects the rules and laws in force in the country in which it operates.
The best brokers to buy American Airlines shares must meet these characteristics:
- Have a FCA, CySEC or equivalent license
- Offer the opportunity to invest both upwards and downwards
- Don’t charge commissions
- Request a minimum deposit of no more than 250 euros.
Here are the services offered by the best brokers on the market: eToro, ForexTB and Trade.com.
eToro: Semplicity and automatic trading
eToro is the broker with the largest number of users in the world, a safe and reliable intermediary for millions of investors.
In the UK, it operates with a FCA license and it has other similar authorizations in other countries.
The trading platform is very intuitive as you can see from the image of the American Airlines asset below:
To buy American Airlines shares, simply click on the “Invest” button, decide how much to invest and whether to buy or sell the asset.
Don’t be fooled by the simplicity of the software: If a trader needs charts and indicators for technical analysis, they are available.
This broker has become world famous for a system that allows you to invest automatically, without doing practically anything: Copy Trading.
As the name implies, this feature allows you to copy the market operations of the best traders in the world (on eToro) in a totally automatic and free way.
To use Copy Trading just follow these simple steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (that can be copied):
Click here and choose which trader to follow
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
Click here and sign up for free
For more details you can read our full eToro review.
ForexTB: Trading Course and Free Trading Signals
ForexTB has been growing very rapidly recently, mainly due to the free services it offers.
The FCA license allows it to operate in the UK.
In order to satisfy every type of investor, it offers two trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
We know that profitable traders have good preparation. ForexTB gives its contribution by offering a free trading course. It is one of the best basic courses on trading and you just need to click on the link below to download it:
Click here to sign up for free on ForexTB
In addition to the course, ForexTB helps its investors with free trading signals. They are precise and reliable operating indications, which reach 70% of positive results, and are elaborated by the famous Trading Central.
Click here and download the trading course for free
Trade.com: Free training and minimum deposit
Trade.com stands out from the competition thanks to its impeccable customer service and very convenient minimum deposit.
The operating license for the UK has been issued by FCA and this is an absolute guarantee of seriousness.
The trading platform proposed by Trade.com is very clear and has a simple and quick user interface, complete with all the main tools and indicators of technical analysis.
Novice traders really appreciate the trading course (in ebook) that this broker offers for free. You can download it immediately by clicking the official link below:
Download the free Trade.com course by clicking here
The training offered by Trade.com is completed with a teaching area divided into 3 levels: Basic, Intermediate and Advanced. Here, every investor will be able to find free information.
No less important is the minimum deposit required by Trade.com: Only 100 euros, lower than most brokers on the market.
Before depositing the money, you can practice with the platform in Demo, without risking anything. The Demo account is identical to the real one, but uses virtual money.
Click here to sign up for free
American Airlines Shares: Real-time quotes
Is it worth buying American Airlines shares?
It is not easy to answer this question, but if buying American Airlines shares is not so sure, it may be profitable to sell them short.
Airlines shares are somewhat in crisis in this period, trapped between fears that the recovery will not be fast enough to save them from bankruptcy and optimism for a growth in the travel sector that will lead soon to “normalization”.
There is evidence to suggest that both scenarios are possible. American Airlines is a giant of the skies but needs passengers and these are still not enough to reassure investors.
Given the uncertainty, the asset has started to swing up and down based on the most recent data. American Airlines said it has seen positive trends in net bookings for both short and long-term travel, but will growth continue?
Although the recovery is slow, American Airlines believes it can reach a breakeven level by the end of 2020, both through improving demand as well as reducing costs.
American Airlines is considered to be the most vulnerable of the major airlines because of its high debt load in the sector, so if this company is making progress, it is probably good news for its less indebted competitors.
In the chart below, you can see the trend of the American Airlines shares listed on the NASDAQ, which has been losing ground for two years now – regardless of the coronavirus.
American Airlines Competitors
Here are some of the main competitors of American Airlines; many of these with much less burdensome debt situations than the US giant:
- Delta airlines
- United airlines
- British airways
American Airlines Forum Actions
Many investors are looking for investment information in online forums, even if the information here is not always up-to-date and it is rarely impartial. So: Be careful and always check the news.
In some American Airlines stock forums, the company’s prospects are based on improving demand conditions and cost-cutting initiatives – this is obvious.
As net bookings declined in April 2020, the airline has reduced its capacity to better meet demand.
Recently, however, it said that it is recovering and plans to reach 55% of internal capacity this Summer and an overall system-wide capacity of around 40%.
So the prospects are good. But is it worth buying American Airlines shares? We will find out in the next paragraph.
American Airlines forecast
Here we are finally at the long-awaited forecasts: In this way, we will be able to clarify the current situation and assess whether American Airlines is a good investment or not.
We are still far from normal: American Airlines expects second-quarter revenue to decrease 90% year-on-year, with a 75% decrease in capacity.
Airlines have the money to survive the losses for now, and American Airlines said it also expects a CARES Act loan of around $ 4.75 billion to increase its liquidity.
But there are no certainties about the recovery of the demand for travel, the timing is uncertain and therefore also the forecasts for the stock exchange. After all, there are no 100% profitable and safe investments.
The $ 4.75 billion loan will run for five years and the company plans to issue warrants to the US Treasury for 38 million ordinary shares at the exercise price of $ 12.51 per share – well below its current value.
The chart below shows the recovery of the stock that had reached historic lows, but analysts disagree:
- for optimists, the stock will reach pre-crisis levels by the end of the year,
- for pessimists, it is better to sell short (invest downwards) with the April 2020 lows as a reference.
American Airlines target price
The main analysts of the eToro Trading Desk have issued sales assessments for the American Airlines group. Their twelve-month average target price is $ 17.13, suggesting that the stock will not move much from current levels.
It is not easy to evaluate an investment in a moment of crisis. The best choice to make in this case is to set purchase orders if the price rises again above the levels of June 2020 and sales orders (short) if the share falls below the lows of the same period.
Price targets must be assessed on the basis of market volatility, but it is better to make short-term investments, because there is still too much uncertainty regarding American Airlines shares.
If you are undecided, you can always do a test in Demo, so you will not risk anything. Here are the official links to access the Demo accounts of the best online brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
It is convenient in a short term perspective, since stock prices are very unstable.
The best way to buy American Airlines shares is to use CFD brokers that allow you to invest without paying commissions.
eToro is the most suitable broker to buy American Airlines shares and also allows you to make automatic investments.
The 12-month target price for American Airlines is $ 17.13 per share