NEW YORK (TheStreet) -- Shares of American Airlines (AAL) are down by 2.85% to $40.53 at the start of trading on Monday morning, after the company's CEO Doug Parker expressed concern that capacity growth among airlines could end up depressing profits, Reuters reports.
"The real question is, is this a one-time catch up for fuel prices being lower or is this airlines behaving like airlines used to and just increasing capacity because times are good," Parker told Reuters when asked about investor concerns regarding capacity increases exceeding a growth in demand.
As fuel costs declined over the past year U.S. airlines have reported billion-dollar profits.
American Airlines isn't the only stock in the sector declining, as airlines seem to be taking a hit this morning.
Separately, 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 impressive record of earnings per share growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."