MW Aviation stocks in focus after deadly collision. American Airlines' stock declines.

By Steve Goldstein

Analyst says 2009 crash suggests airline won't see long-term pressure

The deadly collision between a military helicopter and a passenger plane operated for American Airlines sent shares of the U.S. carrier lower in premarket trade on Thursday.

American Airlines $(AAL)$ stock fell 3% in premarket trade after a CRJ-701 jet, made by Bombardier, crashed into a Sikorsky H-60 helicopter on a training exercise near Reagan National Airport in Washington, D.C. The flight, American Eagle 5342, was operated by affiliate PSA Airlines.

Bombardier (CA:BBD.B), listed in Canada, was not yet active. Shares of Lockheed Martin $(LMT)$, the parent company of Sikorsky, saw slight gains in premarket trade.

"At this point, it seems too early to tell what may have gone wrong, including whether or not the military helicopter strayed onto a commercial flight path. However, among other factors, it is possible that calls for increased funding for the federal government's transportation-related agencies could grow louder," said Stephen Trent, an analyst at Citi.

Savanthi Syth, an analyst at Raymond James, said American Airlines' stock is likely to see short-term pressure. "Similar to the Colgan (operating as United Express) crash on Feb. 12, 2009, we suspect there will not be a long-term impact on U.S. air travel demand and American shares," Syth added.

That aircraft, a Bombardier Q400, stalled and crashed into a house, killing all the passengers and crew on board.

-Steve Goldstein

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January 30, 2025 08:26 ET (13:26 GMT)

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