American Airlines Stock Hit by Fuel Costs, United Deal Out of Reach
American Airlines Group traded around $13.60, up 10 cents, as higher airline fuel prices offset talk about a possible deal with United Airlines dying down. The Nasdaq company’s market cap was roughly $9 billion. Rising fuel prices are squeezing airlines as the industry faces a test this summer with costlier fares. U.S. airline fuel bills jumped 78% in April from a year ago, hitting almost $6.5 billion, according to the U.S. Transportation Department on Monday. Airlines paid $4.11 a gallon. Fuel is a major expense for airlines, so even small price swings can damage profits.