Group 1 - The airline earnings season began positively, with Delta Air Lines exceeding expectations and boosting investor confidence across the sector [1][3] - Delta's first-quarter earnings results alleviated investor concerns about inflation and tariffs, and the company reinstated its full-year guidance with an earnings forecast above consensus estimates [3][4] - The strong performance of Delta has led to increased stock prices for American Airlines and other carriers, indicating robust demand during the summer vacation season [4] Group 2 - American Airlines has a significant long-term debt of $29.4 billion, which is approximately double that of Delta, making it more vulnerable to potential downturns [5] - Despite the high debt, American and Delta have similar enterprise value-to-earnings multiples, but Delta is considered a more stable investment option due to the volatility in the airline sector [5]
Why American Airlines Stock Is Elevating Today