American Airlines Stock In Focus – What’s The Link With Venezuela?

American Airlines announced plans to reinstate nonstop service between the U.S. and Venezuela.

• U.S. President Donald Trump on Thursday had asked the Transportation Department to open Venezuelan airspace for U.S. flights. 
• The airline said it remains in close contact with federal authorities. 
• American Airlines started operating in Venezuela in 1987, and suspended service in 2019. 

American Airlines Group Inc. (AAL) shares were in focus after it became the first airline to announce plans to reinstate nonstop service between the United States and Venezuela.

American Airlines started operating in Venezuela in 1987, and before suspending service in 2019, served as the largest U.S. airline in the country.

Shares of AAL traded marginally in red at the time of writing. 

The Resumption Plan

American Airlines said it will share additional details about its return to service in the coming months.

“We have a more than 30-year history connecting Venezolanos to the U.S., and we are ready to renew that incredible relationship,” said Nat Pieper, American Airlines’ Chief Commercial Officer.

Trump Opens Airspace

Earlier on Thursday, U.S. President Donald Trump had asked the Transportation Department to open the Venezuelan airspace for U.S. flights after a discussion with the country's acting President Delcy Rodríguez. 

On Jan. 16, the Federal Aviation Administration (FAA) had warned U.S. airlines to exercise caution when flying over Mexico, Central America, and parts of South America, citing the risks of potential military activities and GPS interference.

Escalating Tensions 

The U.S. has carried out a strike on Venezuela and arrested President Nicolás Maduro and his wife, who were flown out of the country in an operation that involved U.S. law enforcement. 
Ever since the strikes, tensions between the U.S., and South and Central American nations have been rising.

Earlier in the day Trump posted on Truth Social that he had a ‘very productive telephone conversation’ with Mexican President Claudia Sheinbaum. He said that the conversation was focused on the border, stopping drug trafficking, and trade. 

How Did Stocktwits Users React?

Retail sentiment around AAL shares trended in ‘bullish’ territory over the past day, amid ‘extremely high’ message volume. 

Shares in the company have fallen 22% in the past 12 months.