American Airlines (AAL) Stock Falling, Worst Trading Day Since 2013 Bankruptcy

NEW YORK (TheStreet) -- Shares of American Airlines Group Inc  (AAL) were falling, down 7.52% to $44.25 on very heavy volume in afternoon trading Wednesday, along with other U.S. carriers amid heightened competition.

Lower fuel costs are forcing the airlines to cut fares and increase routes to keep up with the competition, Bloomberg reports.

Yesterday, TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio sat down with company chairman and CEO Doug Parker on CNBC's Mad Money show.

Parker defended his decision to take his salary in American Airlines stock, and said the company's stock is once again a real currency to be proud of.

Although business is improving, Parker also admitted to increased competition in the space. Parker also said that the stronger dollar hurts overseas earnings.

In addition, American Airlines' cautious tone at an investment dinner last night is another reason for concern.

Real Money Pro contributor Ed Ponsie wrote, "Issues raised by company officials included industry capacity and margin compression."

About 35.28 million shares have changed hands as of 2:37 p.m. ET today, compared to its average volume of about 9.86 million shares a day.

American Airlines provides scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia.

The company is based in Fort Worth, Texas.

Insight from TheStreet's Research Team

Ed Ponsi commented on American Airlines in a recent post on Real Money Pro. Here's a snippet of what Ponsi had to say:

Southwest's situation isn't company-specific. The entire airline sector, represented here by the Dow Jones U.S. Airline Index ($DJUSAR) is trading beneath its 200-day MA for the first time in six months. Other names in this sector that are breaking beneath their 200-day MAs include American Airlines (AAL) and United Continental (UAL). It's interesting to note that Delta Airlines (DAL) is currently hovering just above its 200-day MA. Meanwhile, both JetBlue Airways (JBLU) and Alaska Air Group (ALK) remain well above that key indicator.

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