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AMR stock hit by oil prices

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satpak77

Marriott Platinum Member
Joined
Dec 2, 2003
Posts
3,015
Question: what is the internal sentiment at AA? Bright outlook ahead ? Hiring ? Etc ? Alot of us (me included) are watching it for hiring news.


http://www.bloomberg.com/news/2011-...airline-shares-as-fuel-climbs.html?cmpid=yhoo

American Airlines parent AMR Corp. (AMR) fell to the lowest since October, pacing declines among most large U.S. carriers, as oil prices jumped to a 29-month high amid violence in Libya.
Airlines worldwide may “be forced to rethink their growth plans for the year if fuel prices continue to rise,” Deutsche Bank AG analysts including Michael Linenberg in New York said today in a note to clients.
Jet fuel is refined from crude and is one of the industry’s biggest expenses, along with labor. Oil for April delivery climbed 2.5 percent $104.42 in New York on concern that strife in Libya will spread to other energy exporters in North Africa and the Middle East.
AMR tumbled 25 cents, or 3.9 percent, to $6.14 at 4 p.m. in New York Stock Exchange composite trading, the lowest closing price since Oct. 5. The Fort Worth, Texas-based parent of American extended its slide for the week to 7.5 percent.
The Bloomberg U.S. Airlines Index lost 1.9 percent and fell for the fourth time in five weeks. Southwest Airlines Co. (LUV) was the only one of 12 carriers in the gauge to advance, rising 2 cents to $11.80.
 
Well, last week, AMR shut down the sunshine pump and replaced it with "Well...not so fast.".

Does that clear things for you?

TC
 
When they announce a code share with Virgin America their stock will surge. No more Super 80 from ORD to SFO!
 
The pension costs certainly don't help, either.
 
OK thanks for the replies. I guess "its gonna get worse before it gets better" at AMR

sad to say, I was optimistic say 6 months ago that things might be turning around. If I am wrong, someone please jump in and remind me, but...
 
Satpak... check my post on APC. Disregard the doomsayers - AA **HAS** to start hiring before long, based on retirements/early outs/new FAA duty regs/aircraft deliveries/planned growth over the next few years to catch up to DL and UA.
 

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