American Airlines issuing $1 billion in debt to help cover 2011 costs

[SELCAL checks]

http://www.dallasnews.com/business/airline-industry/20110307-american-airlines-issuing-1-billion-in-debt-to-help-cover-2011-costs.ece

 

[maxblast72]

I am not a professional financial analyst, but that doesn't seem good. Mortgaging route authorities and landing slots/gates?

 

[jonjuan]

Shares of American parent AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 6.21, +0.07, +1.14%) rose less than 1%, while those of Delta Air Lines Inc. /quotes/comstock/13*!dal/quotes/nls/dal (DAL 10.01, +0.10, +1.01%) added 0.5% and United Continental Holdings /quotes/comstock/13*!ual/quotes/nls/ual (UAL 22.63, +0.37, +1.66%) gained 1%.

US Airways Group Inc.’s /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 8.28, -0.01, -0.12%) shares slipped a fraction.

Elsewhere, rising ticket prices have helped to offset the spike in jet-fuel prices.

SkyWest Inc. /quotes/comstock/15*!skyw/quotes/nls/skyw (SKYW 16.48, +0.57, +3.55%) was upgraded to buy from hold at Deutsche Bank because of better-than-expected revenue growth due to several successful fare hikes.

Shares of SkyWest rose 3.4%.

How nice for them uke:

 

[jws717]

I am afraid American will need to do the Chapter 11 wash and rinse, before they can turn a profit. The debt load is just too high. Not to mention the cost of MD-80 replacements.

 

[jonjuan]

I am afraid American will need to do the Chapter 11 wash and rinse, before they can turn a profit. The debt load is just too high. Not to mention the cost of MD-80 replacements.

They'll go after the pensions first. uke:

 

[General Lee]

I think AA is still paying down debt, with everyone else profitable last year, and AA only barely profitable, supposedly. Maybe they are borrowing some money to continue the consolidation trend?


Bye Bye--General Lee

 

[BLUE BAYOU]

With oil almost hitting $107/barrel today, I think we'll all be heading down this road sooner or later. There's stuff to be said about the Middle East unrest-- but last time oil went to near $150/brl it was because of speculative buying, much to our chagrin-- it's happening again...

 

[Yuppyguppy]

you first sonny

 

[clippyrip]

Maybe they are borrowing some money to continue the consolidation trend?

Loading their guns to acquire Alaska Air?

 

[Flyby1206]

Refinancing debt. They had $2.4bil in debt payments due in 2011, and the market is at a good spot for refinancing. Nothing to see here.