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American Airlines Flights Grounded on Technical Concerns

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Technical glitches are becoming a growing concern for carriers, often resulting in passenger harassments and messed up flight schedules.

Recently, several flights of American Airlines GroupAAL , which came into being following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways, experienced significant delays due to a software glitch. According to media reports, computer failures have delayed timely check in of passengers on the flight.

American Airlines flights remained grounded in Dallas, Chicago and Miami airports for less than two hours following a technical problem. However, the root cause of the problem not known. The sole consolation for the carrier was, however, that there was no evidence of external threat/hacking behind the problem, according to a report appearing in the Associated Press.

According to FlightAware.com, the technical problem resulted in about 600 flights being delayed on American Airlines and more than 200 for Eagle operator Envoy Air. This had happened late afternoon on Thursday.

Prior to that, in Apr 2015, passengers of American Airlines Group faced undue bother following significant flight delays caused by an abrupt crash of pilots' iPads. As technological infrastructure constitutes a key expense for airline companies, the profitability of carriers could be potentially affected in the event of such technology malfunctions.

Few months back, even United Continental Holdings, Inc. UAL faced similar technical issues where network connectivity problems were responsible for service disruption. The glitch prompted the Federal Aviation Administration to issue an advisory notice pertaining to a "ground stop" for United Airlines flights (mainline). The advisory was, however, lifted after approximately 2 hours as flights of the Chicago, IL-based carrier resumed regular operations after the software issue was resolved.

Stocks to Consider

American Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include SkyWest Inc. SKYW and JetBlue Airways Corp. JBLU . Both sport a Zacks Rank #1 (Strong Buy).

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JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

SKYWEST INC (SKYW): Free Stock Analysis Report

AMER AIRLINES (AAL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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