NEW YORK (TheStreet) -- American Airlines (AAL) - Get Report stock is declining 5.55% to $25.55 on heavy trading volume on Monday afternoon as equity markets drop for the second consecutive trading day following the U.K.'s decision to leave the European Union.
American Airlines and other domestic airline carriers are expected to face some headwinds from U.K.'s separation from the bloc, according to Deutsche Bank, Barron's reports.
"While we continue to believe that London will remain a major O&D market for the foreseeable future, the vote to leave the EU does create uncertainty with respect to near-term demand for air travel to/from the U.K. as well as how the U.K. will feature in a revised EU - U.S. Open Skies accord," Deutsche Bank analysts wrote in a note.
The U.K. accounts for 6.3% of American Airlines' total capacity, which could pressure the company's earnings, analysts explained, Barron's added.
So far today, 15.72 million shares of Fort Worth-based American Airlines have been traded, compared with its average daily volume of 10.04 million shares.
Separately, American Airlines has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's notable return on equity and good cash flow from operations, which offsets growth in net income, generally higher debt management risk and disappointing stock performance.
You can view the full analysis from the report here: AAL
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 article's author.