NEW YORK (TheStreet) -- American Airlines (AAL) shares are up 1.26% to $40.25 in afternoon trading on Tuesday following a note from Raymond James analyst Savanthi Syth reassuring investors that the Greek debt crisis will not affect the airline industry.
"In general Greece is likely to have very little negative impact on profits as it is primarily a tourist destination, is not a significant driver of demand, and accounts for a relatively small portion of overall capacity," said Syth, according to Barron's.
"Greece is primarily a tourist destination, particularly for passengers from the U.K., Germany, and Italy, and does not drive much local demand. Moreover, Greece accounts for a very small portion of overall capacity for the airlines under coverage...it accounts for 3% or less of European airline overall seat capacity and 1% or less of North American airlines' international seat capacity," he continued.
Delta Airlines (DAL) and United (UAL) shares are both rising in trading today.
The European Central Bank said Sunday that it will provide no new emergency support for Greek banks after the country's government decided to pull out of bail out negotiations on Friday.
Greek officials said that banks will remain closed through July 6 with withdrawals limited to 60 euros per day.
The Greek stock exchange is closed until July 6.
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: