Originally Posted by HSLD
Now just add cost of [borrowing] long term and short term debt, the debt itself, operating costs, labor costs, RASM, CASM, etc..... and you might see why even with 20B revenue, AMR is close to a breakeven operation at best (just like the rest of the industry).
WRONG!
With 6% less US Capacity next year from Chapter 11 airlines, expect the AMR REVENUE MACHINE to continue!
With RASM UP 15.2% last Q, we expect RASM/YIELDS to Be UP another 10% next year! Thats 10% of $20 BILLION is a $2 BILLION dollar INCREASE with a VERY GOOD CHANCE OF FUEL DOWN $1 BILLION to $4.75 Billion for the year!
THATS A SWING OF $3 BILLION PROFIT!!
This is EXACTLY WHY AMR STOCK IS UP 80% IN THE LAST 30 DAYS!!
AMR stock trend has been a 5% increase for every $1 drop in OIL price!
Every $1 drop in OIL Reduces AMR COSTS/YEAR by $80 Million.
Last edited by 777AA; 11-12-2005 at 10:12 AM.