U.S. Transportation Department likely to approve joint venture between American Airlines (AAL, $28.82) and Qantas Airways
The U.S Transportation Department is likely to allow a tentative agreement for a joint venture between American Airlines and Qantas Airways as well as granting antitrust immunity. The order is likely to include conditions to protect competition and allow for government oversight of the venture.
Earlier in 2016 during the Obama administration, the same application intended to cover U.S, Australia, and New Zealand was rejected over opposition from rival carriers like Hawaiian Airlines Inc and JetBlue Airways Corp (JBLU).
But this time the airlines have made a compelling case that included strong arguments in favor of coordination of price and schedules and unlocking of up to $310 million annually in consumer benefits. The application even threatened to cancel services, between Sydney and Dallas for Qantas and Los Angeles, Sydney and Auckland for American Airlines, if it was rejected.
The revised application also factored in the code sharing facility with other carriers, a process in which multiple publish and advertise a single flight under their own airline number. This leads to a reduction in prices and an improvement in service quality. The application argued that the joint venture has the potential to generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
New routes for Qantas could include non-stop flights from Brisbane to Chicago, Dallas or Seattle.
Momentum Indicator for AAL turns negative, indicating new downward trend
AAL saw its Momentum Indicator move below the 0 level on July 09, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned negative. In of the 83 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AAL moved out of overbought territory on July 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for AAL turned negative on July 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
AAL moved below its 50-day moving average on July 17, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for AAL moved above the 200-day moving average on June 22, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AAL advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
AAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 244 cases where AAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AAL's P/B Ratio (0.000) is slightly lower than the industry average of (3.205). AAL has a moderately high P/E Ratio (48.323) as compared to the industry average of (20.103). Projected Growth (PEG Ratio) (0.570) is also within normal values, averaging (2.924). AAL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.019). P/S Ratio (0.177) is also within normal values, averaging (0.614).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AAL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
a provider of air transportation services for passengers and cargo
Industry Airlines
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