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Fly News Breaks for June 3, 2015
AAL
Jun 3, 2015 | 08:17 EDT
As previously reported, BofA/Merrill downgraded American Airlines (AAL) to Neutral and lowered its price target to $50 from $64. The firm said American Airlines' exposure to Dallas is a key risk given Southwest's (LUV) growing capacity at Love Field. BofA/Merrill believes PRASM could be hit another 25bps following the nearly 150bps in 2015. The firm now expects American Airline's 2016 PRASM to be flat vs. +200bps previously and lowered estimates accordingly.
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