The American Airline (NASDAQ: AAL) Struggling?

American Airlines Group Inc (NASDAQ: AAL) is a major U.S airline. With head quarters in Fort Worth, Texas, it operates on international and domestic networks. Its destinations range from North America, the Caribbean, South America and Europe to Asia. Its main base is at Tulsa International Airport. American Airlines (NASDAQ: AAL) operates under the OneWorld airline alliance. It arranges fares, services and scheduling with different airlines in the transatlantic market, the transpacific market and regional market.

A quick review of the September traffic for the American Airlines (NASDAQ: AAL) Group Inc (NASDAQ:AAL) shows a decrease in the load factor by 1.5 point to 80%. This nine month analysis showed an increase of 1.6% in the total capacity summing up to 21.1 billion and total revenue passenger miles for September decreased by 0.2% to 16.9 billion compared to last year.

Regardless of these figures American Airlines (NASDAQ: AAL) expects an increase in revenue per available seat mile from 0.5% to 1.5% along with pretax margin between 10% and 12%. The overall performance might be below average, but is still considered somewhat on the road of progress.

September, not being the peak month for travelers showed much less traffic as compared to other months of 2014. The prior three months had an increased traffic flow and the next round of heavy traffic is expected at Thanksgiving and then the holiday season in December and January.

Looking at the larger picture, 2013 results till the same time period showed a 83.3% load factor and 2014 faced a decrease and summed up to 82.6%. Many were a result of a decrease in international travel, whereas both revenue passengers and available seat miles were up.

All this is expected to have an effect on the shares but the latest stocks showed the American Airline shares being up by 1% at $34.48, with a price target of $52,21; whereas a 52 week trading ranges from $19.77 till $44.88. The market cap stands at a firm $24 billion. The company has a revised plan for its growth in the third quarter. Even though this week the shares have fallen by 15% in the previous three months but were still up 35% for the year.

In its attempt to offer more to its prestigious customers, American Airlines (NASDAQ: AAL) is now offering a program for its high class customers where passengers with tight transfer times can avail a Cadillac CTS, SRX or Escalade to chauffer them. The program is exclusive for the AA’s elite ConciergeKey members. This partnership is a promise to bring exclusive benefits to travelers.

Cadillac dealers on the other hand will take advantage of this partnership with American Airlines (NASDAQ: AAL) as it provides more test drives to elite customers than before. With the help of this offer it will take less effort than trying to convince people to come down to the showroom and ask for a test drive. It gives prospective customers a feel and an experience of the Cadillac.