The volatility in the global stock market and acquisition of Activis has earned American Airlines Group Inc (NASDAQ:AAL) a place in S&P 500 index. As per the reports, the leading airline company will replace Allergan. The list is all set to be updated on Friday, so American Airlines will mark its feet on the same day itself.
Impact On National Stock Market:
It’s one of the best achievements for American Airlines as the company has entered into the reputed group for the very first time. As soon as this news hit the market, investors showed a positive response. Reports claim that the stock of this leading airline company opened 5% higher on Tuesday than its previous day’s close. The transition period for U.S. stock market seem to get over, as it’s becoming more stable with every day.
The road for the American Airline has not been easy so far in 2015. Issues like over-capacity concerns affected its stocks badly and caused huge loss. If the data showing American Airlines’ stock performance on year-to-date basis is taken into consideration, then one can see that company’s stocks were 6% down before Monday. However, market condition changed within a couple of days. The company’s stock is trading around 30% higher year-on-year bases now.
Things have improved gradually for American Airlines over the past twelve months. The current market cap of the company is close to $37 billion, which has elevated to this level after it decided to merge with US Airways. The other competitors of American in the S&P 500 are Southwest Airlines and Delta Air Lines.
According to Douglas Parker, CEO, Airlines Group Inc (NASDAQ:AAL), this day was always on the cards. After executing merger transaction with US Airways, it became the largest airline company in the world, but entering into S&P 500 group was something more than expected. The company would try to meet customer expectations in the future as well.