AMR bankruptcy?
10-03-2011, 08:48 AM
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AMR bankruptcy?
Possibly getting closer. More guys running for the door to get their money. Analysts pushing the company towards bk.
American Airlines Shares Tumble 18% On Outlook
12:22 pm ET 10/03/2011 - Reuters
* AMR shares plummet 18 percent
* Analysts speculate on bankruptcy
* Airline shares broadly weaker
Oct 3 (Reuters) - Shares of American Airlines parent AMR Corp <AMR.N> fell more than 18 percent on Monday as analysts debated the prospects for a bankruptcy filing for the third- largest U.S. airline, which lags its industry peers.
Airline stocks were down broadly on concerns that a weak economy will drain travel demand and hit fares this autumn.
But American, seen financially as the weakest major carrier, saw the the worst share losses on a percentage basis. The stock was down 15.9 percent, or 47 cents, at $2.49 on the New York Stock Exchange.
"When can they stop the bleeding of cash?" asked Basili Alukos, an equity analyst at Morningstar. The carrier had a second-quarter net loss of $286 million, while rivals showed profits.
"If it appears we're coming into somewhat of a rough patch or slowdown, how is that going to fare for them?" Alukos said. "I don't think very well, because they were unable to generate a profit kind of in the best of times for the airlines last year."
Ray Neidl, a senior aerospace sector analyst with Maxim Group, said in a recent research note that: "Some believe that a prepackaged bankruptcy filing would be the best thing for AMR and the industry."
An AMR spokesman did not immediately respond to a request for a comment on the bankruptcy talk.
American is the only major carrier that did not restructure in Chapter 11 during the recent industry downturn. As a result the airline has operating costs -- including labor -- that are higher than competitors.
Meanwhile, experts warn that an economic downturn could hit travel demand just as airlines are beginning to recover.
The International Air Transport Association on Monday said airline traffic slowed in August compared with July, with the total passenger market down 1.6 percent.
American Airlines Shares Tumble 18% On Outlook
12:22 pm ET 10/03/2011 - Reuters
* AMR shares plummet 18 percent
* Analysts speculate on bankruptcy
* Airline shares broadly weaker
Oct 3 (Reuters) - Shares of American Airlines parent AMR Corp <AMR.N> fell more than 18 percent on Monday as analysts debated the prospects for a bankruptcy filing for the third- largest U.S. airline, which lags its industry peers.
Airline stocks were down broadly on concerns that a weak economy will drain travel demand and hit fares this autumn.
But American, seen financially as the weakest major carrier, saw the the worst share losses on a percentage basis. The stock was down 15.9 percent, or 47 cents, at $2.49 on the New York Stock Exchange.
"When can they stop the bleeding of cash?" asked Basili Alukos, an equity analyst at Morningstar. The carrier had a second-quarter net loss of $286 million, while rivals showed profits.
"If it appears we're coming into somewhat of a rough patch or slowdown, how is that going to fare for them?" Alukos said. "I don't think very well, because they were unable to generate a profit kind of in the best of times for the airlines last year."
Ray Neidl, a senior aerospace sector analyst with Maxim Group, said in a recent research note that: "Some believe that a prepackaged bankruptcy filing would be the best thing for AMR and the industry."
An AMR spokesman did not immediately respond to a request for a comment on the bankruptcy talk.
American is the only major carrier that did not restructure in Chapter 11 during the recent industry downturn. As a result the airline has operating costs -- including labor -- that are higher than competitors.
Meanwhile, experts warn that an economic downturn could hit travel demand just as airlines are beginning to recover.
The International Air Transport Association on Monday said airline traffic slowed in August compared with July, with the total passenger market down 1.6 percent.
10-03-2011, 09:00 AM
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AMR Shares Dip 18% On New Bankruptcy Concerns
11:45 am ET 10/03/2011 - MarketWatch Pulse News Bullet
WASHINGTON (MarketWatch) -- Shares of American Airlines parent AMR Corp. declined sharply Monday to their lowest level in more than two years on renewed concerns that the troubled carrier was about to file for bankruptcy.
More than 200 pilots have retired from the Ft. Worth, Texas-based carrier in the last two months, compared with a typical monthly dozen, according to media reports. Pilots who retired last week were able to cash in company stock at its Aug. 1 price, which was 28% above Friday's closing price.
"We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further [depresses] the stock price," said Ray Neidl, an analyst with Maxim Group LLC. "I still believe that AMR management wants to avoid filing." No one from AMR or the Airline Pilots Association was available to comment. Shares of AMR fell nearly 18% to $2.42.
11:45 am ET 10/03/2011 - MarketWatch Pulse News Bullet
WASHINGTON (MarketWatch) -- Shares of American Airlines parent AMR Corp. declined sharply Monday to their lowest level in more than two years on renewed concerns that the troubled carrier was about to file for bankruptcy.
More than 200 pilots have retired from the Ft. Worth, Texas-based carrier in the last two months, compared with a typical monthly dozen, according to media reports. Pilots who retired last week were able to cash in company stock at its Aug. 1 price, which was 28% above Friday's closing price.
"We are in a down market today, but the exceptional number of American pilots retiring is a sign that they want to protect their pensions and get out before a possible filing further [depresses] the stock price," said Ray Neidl, an analyst with Maxim Group LLC. "I still believe that AMR management wants to avoid filing." No one from AMR or the Airline Pilots Association was available to comment. Shares of AMR fell nearly 18% to $2.42.
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