American Airlines reported earnings last week, and to no one's surprise, it lost a ton of money -- $2.2 billion for the quarter, to be exact. This marked a negative earnings-per-share (EPS) of -$3.86 for the quarter, losses not unlike those being felt across the airline industry.
But the stock soared on the news. There may be two reasons for this:
Shorting American Airlines -- much like the shorts against GameStop -- were arguably justified. The company sports the lowest profit margins among the big U.S. carriers, and its innovation in the realm of technology is lacking. What's more, AAL's debt load is amongst the biggest in the industry, meaning that even in a post-pandemic economy it has its work cut out for it.
Airlines in general are poised to have a strong second half of 2021, once the country gets closer to mass immunization and people will safe traveling again. Big revenues are expected -- the question is, which airlines are best positioned to capture this resurgent growth? Below, Tickeron's Artificial Intelligence analyzes the entire industry, giving investors trading insights for what lies ahead.