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FORT WORTH, Texas - American Airlines Group Inc. (NASDAQ: AAL), currently valued at $6.2 billion, has nominated Kathryn (Katie) Farmer, the current president and CEO of BNSF Railway, to its board of directors, with the election set for the annual meeting of stockholders on June 11, 2025. If elected, Farmer is expected to serve on the board’s Finance Committee and Safety Committee. The nomination comes as the airline’s stock trades at $9.46, down about 46% year-to-date according to InvestingPro data.
Greg Smith, Chairman of American Airlines, expressed confidence in Farmer’s capabilities, citing her "significant, relevant and proven senior leadership experience." Farmer, 55, has been with BNSF Railway since 1992, ascending to her current role as CEO in 2021. Her tenure at BNSF has included various senior leadership positions, notably as executive vice president and chief operations officer, and group vice president of consumer products. The appointment comes as American Airlines maintains its position as a prominent player in the Passenger Airlines industry, with annual revenue of $54.2 billion.
American’s CEO, Robert Isom, also praised Farmer’s extensive operational and marketing expertise, especially her experience in a highly regulated industry, which he believes will be beneficial to American Airlines.
Farmer’s leadership extends beyond BNSF. She is active on several boards, including the Association of American Railroads, Texas Christian University, the American Heart Association SouthWest Region, and the Fort Worth Economic Development Partnership. She holds both a Bachelor and a Master of Business Administration from Texas Christian University.
American Airlines, a founding member of the oneworld® alliance, operates flights to over 350 destinations in more than 60 countries. The company’s shares are traded on the Nasdaq stock exchange under the ticker symbol AAL at a P/E ratio of 7.3, with its next earnings report scheduled for April 24, 2025. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, with 12 additional exclusive insights available to subscribers. This announcement regarding Farmer’s nomination is based on a press release statement from American Airlines.
In other recent news, American Airlines has faced a series of significant developments. The airline has revised its first-quarter financial expectations, now anticipating a loss of up to $0.80 per share, which is a substantial increase from its previous maximum loss estimate of $0.40 per share. Revenue expectations have also been adjusted to flat growth, down from an initially projected increase of up to 5%. These changes come amid challenges such as operational disruptions and a decline in domestic leisure travel. Analysts have responded to these updates, with UBS lowering its price target for American Airlines from $19.00 to $13.00, while maintaining a Neutral rating. Similarly, BofA Securities reduced its price target from $20.00 to $16.00, also keeping a Neutral rating. In contrast, Citi has maintained a Buy rating with a $21.50 price target, citing strong anticipated revenue streams from premium and international travel. Meanwhile, American Airlines, along with British Airways, has offered commitments to address regulatory concerns regarding their cooperation on UK-US routes, highlighting ongoing scrutiny of airline alliances. These developments occur as the travel industry grapples with broader economic pressures and recent aviation incidents impacting consumer confidence.
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