NEW YORK (TheStreet) -- American Airlines (AAL) shares are up 5.17% to $49.47 in afternoon trading on Thursday as falling oil prices leading to lower fuel costs lifted the airline sector in trading today.
Industry standard Brent crude for June delivery is down 2.88%, or $1.95 to $65.82 per barrel, while U.S. West Texas crude is also down 3.10%%, or $1.89 to $59.04 per barrel. The fall in prices comes one session after oil prices rose to five month highs yesterday.
Oil prices are declining as the dollar strengthened against foreign currencies today following the release of last weeks jobless benefit claims numbers. Claims rose by just 3,000 to seasonally adjusted number of 265,000, slightly above 262,000 claims that represents a 15 year low.
TheStreet Ratings team rates AMERICAN AIRLINES GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN AIRLINES GROUP INC (AAL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."