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1 More Reason to Avoid American Airlines Stock: Surging Costs

TheMotleyFool

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1 More Reason to Avoid American Airlines Stock: Surging Costs

For much of last year, American Airlines (NASDAQ: AAL) shares seemed to defy gravity, despite the continuing impact of the COVID-19 pandemic on demand.

Indeed, American posted a pre-tax loss of $2.5 billion in 2021. Excluding special items (most notably, the benefit from government payroll support programs), its pre-tax loss came to nearly $7 billion. Nevertheless, American Airlines stock spent much of last year above $20, putting its market cap roughly in line with pre-pandemic levels and its enterprise value at a multiyear high.