American Airlines Earnings: We See Costs Overshadowing Market Share This Year; Fair Value Up 6%

American Airlines released first-quarter results on April 25, and we have raised our fair value estimate by $0.80 per share to $13.10, predominantly due to the time value of money. Our no-moat rating is intact. A few adjustments to our fair value estimate resulting from the company's beefed-up capital spending plan for aircraft and truing up its pension obligations were offset by a more straightforward reflection of the value of its deferred tax obligations.