American Airlines (AAL) New AAdvantage Credit Cards See Income Rise
NEW YORK (TheStreet) -- Shares of American Airlines (AAL) - Get Report are up by 8.47% to $33.80 on Tuesday afternoon, as the company reported that its pre-tax income will rise $200 million in the second half of the year, $550 million in 2017 and $800 million in 2017, Bloomberg's Julie Hyman reported on "Bloomberg Go" this morning.
The increase in income comes as the company announced a new partnership with Citigroup (C) and BarclayCard US (BCS) to expand its AAdvantage credit card program, Hyman said.
The company hopes it will provide higher growth in credit card customers than it would have with a single provider.
The two banks will use AAdvantage branded credit cards starting in January, according to Bloomberg.
The company also has a new, long-term exclusive agreement with MasterCard (MA).
Shares of Citigroup are increasing by 2.32% to $43.27, Barclays stock is rising by 4.04% to $7.98, and Mastercard is advancing by 1.19% to $89.81 this afternoon.
Separately, TheStreet Ratings team set this stock at a "hold" with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, as a counter to these strengths, TheStreet ratings team also finds weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AAL