Airline Stocks: American, Boeing, Southwest, United. Ugly Price Charts

The bad news about airline manufacturers and airline companies is making the front page these days and shareholders in their stocks have decided it’s not good. All the slick public relations pieces to the contrary, all that matters in the investment world is “should I hold this or get rid of it?” and get rid of it is winning in these 4 names.

The daily price chart for American Airlines AAL is here:

The nice rally from the October 2023 low of near $11 continued to the early March 2024 high of just above $16. The selling since that short-term top has taken the price back down to $13.97. That’s below the 200-day moving average as well as the 50-day moving average, not the direction of price most favored by investors.

Here’s the weekly price chart for American Airlines:

The stock had just recently peaked above that downward trending 200-week moving average, similar to the quick trip above it in mid-2023. Unable to hold that line, the price is now retreating further and it’s closed below both shorter and longer-term moving averages. The red-dotted line indicates October 2023 support level as well as the late 2020 support.

The Boeing BA daily price chart looks like this:

The stock looked great from the late October 2023 low of near $175 right up until the late December 2023 high of $265 — and then the buyers handed it over to the sellers. What a trip: all the way back down now to $184.43. The 50-day moving average just crossed below the 200-day moving average. Will it test the October low?

Here’s the weekly price chart for Boeing:

The stock now trades underneath the levels of both the 50-day moving average and the 200-day moving average. The possible re-test of the October 2023 area is clear on this chart, along the red-dotted line. Note the extraordinary ups and downs experienced by long-term shareholders.

The daily price chart for Southwest Airlines LUV is here:

Today’s huge gap down on the most selling volume in months is evident — I’ve red-circled the phenomenon. It’s yet another instance of an airline stock now trading below the 50-day and the 200-day moving averages. Buyers came in at $27 in January and at just under $22 in late October/early November 2023.

The Southwest Airlines weekly price chart looks like this:

Everyone who purchased the stock in 2021 and held onto it is now underwater. Note that the 50-week moving average crossed below the 200-week moving average in April, 2022, a signal of some foresight. The price now trades below both of the moving averages as indicated by the red circle on the right side of the chart.

Here’s the United Airlines UAL daily price chart:

The stock dropped below its 50-day moving average today and managed to climb back to the same level by the close. Meantime, it’s been unable to trade above the 200-day moving average since September 2023. The red-dotted line indicates where buying came in during January 2024, that may now be a support level.

The weekly price chart for United Airlines looks like this:

Another of the up-and-down price charts, with this week and last week’s selling, the stock now trades below the 50-day and the 200-day moving averages. The late February/early March low may be an area of significant support.