Fundamental Analysis
According to data released by Statista on August 29, 2023, AAL holds approximately 17.5% of the domestic market share among leading US airlines from February 2022 to January 2023. This marks the highest percentage of market share held by a single airline in the US, indicating a significant competitive advantage.
Furthermore, the airline industry is a crucial sector for economic growth, and governments typically strive to support major players within it to prevent failures.
My game plan is to invest in the top four airline companies in the US, based on their market share, at favorable values determined by price action. I already hold a position in UAL. The remaining airlines on my list are AAL, LUV, and DAL.
Technical Analysis
The current price is at the lower end of the channel, prompting me to initiate a position, representing approximately 2.5% of my capital as a single entry. I do not intend to increase this position further, even if the price experiences a significant decline. However, I will consider purchasing other airline stocks from my watchlist if they reach my desired entry levels.
Conclusion
If I decide to make any changes to my position in the future, I will provide updates to this post. Check out the posts, regarding my other Airline stock entries,which is attached underneath.