AMR Stock

[Cleared Direct]

AMR stock down 34.02% today @ $1.59:

 

[CaptBuzzard]

I was watching CNN and they reported that this war could cost the airline industry $6 billion. I am supporting this war in most cases, but it is clear that the airline industry is probably the most vulnerable out there. I also saw that the U.S. govt said that they would pay Iraqi soldiers after the war for something. Ok, we're going to go kick the $hit out of some country, then pay them money. I know that there is more to it than that, but come on, this industry is terrible right now, and with airlines already in CH 11 and on the brink of Ch 7, and the rumors of AMR going to Ch 11, wouldn't it be justified for the govt to aid failing industries? Now I think that to get this war over would in the long run help everything out and hopefully get this country back to a somewhat more normal lifestyle. I just hope that they don't just watch their own country's industries go down in flames just to get one dictator out of power. Don't get me wrong, he needs to be taken down, but I would hope that our govt is prepared to shell out some aid towards our own problems in the mean time. I am just so sick and tired of turning on the news or reading online that 1000's of more people are out of jobs. Not just the airline industry (which of course I am most concerned about), but everything. I live in a state where the unemployment rate is among the highest in the country and have pretty much been displaced in my current flying job. It is tough to find a job around here. I guess I just have to say that this is the first time in my adult life that I am seeing these kinds of problems. I was a Freshman in highschool when the gulf war happened. I was still in highschool when the early 90's recession hit. I didn't pay much attention back then, but now that I am in the real world, it is much much different.

The airlines did get hit hard today. I just hope that they can recover. The stocks were bouncing back a year ago and then they just fell.

 

[General Lee]

Delta for example lost something like $1.95 a share today, which is horrible---but it was because they announced that they probably wouldn't make a profit this quarter and there might be a 1.5% capacity reduction. Who wouldn't think there would be a capacity reduction during a war? Isn't that obvious?

Bye Bye---General Lee

 

[CaptBuzzard]

I think the gov't needs to do something about that. Of course less people will travel during a war, and when the industry can't get much worse as we stand now, a war could make them hit bottom. If our gov't is prepared to invade a country and spend billions on someone else's problem. Let me restate that, I do think that Sadaam Hussein is a worldwide threat, but if we go take him out, it will hurt the well being of our economy for a short period of time. A quick war is hopefully what will happen if we go, but in 2001 when there were signs of recession, and then the 9/11 attacks happened and shut everything down for a few days (I would call that a real short period of time). Look what happened to the industry. 1 1/2 years later and the airlines are faltering still.

I swear the investors out there are a bunch of superstitious freaks. It is really strange how speculation and projections can either be good or lately be bad for the economy. Oh no, we are going to war, I guess I shouldn't fly from ATL to MCO. I can understand why people wouldn't want to fly international and I would expect the biggest hit to be (let's say for DAL) the trans-atantic routes.