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American Airlines shares gain for a second straight session on Wednesday, two inches of legroom to be cut in new 737 MAX jets

Another two inches of economy class legroom are to be cut in American Airlines new 737 MAX jets by Boeing. The new aircraft are expected in the fall of 2017, while they are to be put into service by the end of the year.

American Airlines shares closed higher for a second consecutive trading session on Wednesday. The stock edged up 0.11% ($0.05) to $43.92, after touching an intraday high at $44.17, or a price level not seen since April 27th ($44.21). In the week ended on April 30th the shares of the transportation company lost 5.60% of their market value compared to a week ago, which marked the first drop in the past three weeks and also the worst performance since the week ended on March 12th. However, the stock has extended its advance to 3.05% so far during the current month, following a 0.76% increase in April. The latter has been the smallest monthly gain since December 2016. For the entire past year, the shares of the NASDAQ-listed carrier added 10.25%.

According to a spokesperson for the company, the new jets will include more seats compared to older 737 versions, which will reduce the distance between seat backs (known as pitch) to 29 inches from 31 inches at present, on three rows of seats.

In addition, the distance between the rest of the rows is expected to be cut to 30 inches from 31 inches at present.

“These (seats) are designed to be used in a very space-efficient way”, Joshua Freed, a spokesperson for American Airlines, said, cited by Reuters. “Even though the pitch comes in at 29 (inches), the seats are built to maximize knee space and seat space.”

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding American Airlines’ stock price, have a median target of $48.00, with a high estimate of $95.00 and a low estimate of $40.00. The median estimate is a 9.29% surge compared to the closing price of $43.92 on May 3rd.

The same media also reported that 10 out of 18 surveyed investment analysts had rated American Airlines’ stock as “Hold”, while 6 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the American Airlines stock are presented as follows:

R1 – $43.99
R2 – $44.06
R3 (Range Resistance – Sell) – $44.13
R4 (Long Breakout) – $44.33
R5 (Breakout Target 1) – $44.57
R6 (Breakout Target 2) – $44.68

S1 – $43.85
S2 – $43.78
S3 (Range Support – Buy) – $43.71
S4 (Short Breakout) – $43.51
S5 (Breakout Target 1) – $43.27
S6 (Breakout Target 2) – $43.16

By using the traditional method of calculation, the weekly levels of importance for American Airlines Group (AAL) are presented as follows:

Central Pivot Point – $44.14
R1 – $45.87
R2 – $49.12
R3 – $50.85
R4 – $52.58

S1 – $40.89
S2 – $39.16
S3 – $35.91
S4 – $32.66 is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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