Jim Cramer Talked About These 6 Airline Stocks

4. American Airlines Group Inc. (NASDAQ:AAL)

Number of Hedge Fund Holders: 41

Talking about how American Airlines Group Inc. (NASDAQ:AAL) stock has managed to rise over the past months, Cramer said:

“Even some of the… majors have made great moves. American Airlines, turn around project… has shot up nearly 90% from its August lows.”

American Airlines (NASDAQ:AAL) operates as a major network air carrier, offering scheduled air transportation services. During its third-quarter update, management expressed confidence in the company’s performance for the holiday season. They noted strong strength in bookings for the holidays and observed similar positive trends during Thanksgiving. Management remains optimistic about the company’s outlook for the fourth quarter based on these booking patterns.

According to AAA, an estimated 119.3 million people are expected to travel 50 miles or more from home between Saturday, December 21, and Wednesday, January 1. This projection represents an increase of 3 million travelers compared to the previous year and exceeds the previous record set in 2019 by 64,000.

Additionally, American Airlines (NASDAQ:AAL) generated $2.4 billion in free cash flow through the first three quarters of the year. Looking ahead, the company expects to take delivery of 17 new aircraft in 2024, with seven of those aircraft scheduled to be delivered by the end of the year. Additionally, the company plans to grow its capacity by approximately 1% to 3% in the fourth quarter, with a full-year capacity increase expected to range between 5% and 6%, consistent with prior guidance.