Why American Airlines Stock Fell in August
American Airlines Group (NASDAQ: AAL) made peace with its pilots union and avoided a potential work disruption. But the ailrine paid a steep price to win that peace.
Shares of American fell 12.1% in August, according to data provided by S&P Global Market Intelligence, on concerns that costs are going up at the same time that demand might be heading in the opposite direction.
American and other airline stocks have recovered somewhat from the pandemic, but the industry in recent months has paid a price for that increase in demand. With the airlines short of qualified pilots and flight attendants after offering early retirements amid the pandemic, the unions have been in a strong position as one airline after another has entered into negotiations.
Source Fool.com
