I read on the thread started by SWillams about AA Platinum status that AA could have possilbe financial problems. The reply is from longboatkey.

I hope this is not the case. I have flown AA for years, had Platinum status for years, used lots of miles and have generally been happy with AA. (I have also had elite status with other airlines at different times and I find AAdvantage to be better than other FF programs).

Is it true that AA are facing tough times financially.

Where can I get this information?

What information do fodorites have?

Thanks.

Turn on CNN. Open your local newspaper to the Business Section.ALL airlines are having financial problems.Relax.Have a Bud.

Yes, I know financial problems are common in the industry.

When I posted the question, I meant to ask how bad things are for AA.

I guess I didn't word things properly in my original post.

How could anyone who has "flown AA for years" and "had Platinium status for years" not know that AA, like just about every US based airline and many non-US airliness, is having financial difficulties? Sorry but have you been living in a cave?. The situation has existed since before 9/11 and will continue for quite some time.

All you have to do is watch CNN or read your local newspaper like Beachboi says. There's at least one article a day dealing with the problems in the airline industry.

For more definitive information read the Annual Stockholder Reports for each airline and you'll have all the grim news you can handle.

Here's a helpful link (do a google search for AMR Earning or AA Earnings for lots more:

http://news.moneycentral.msn.com/pro...amp;id=8495878

Roamsaround, thanks for the link I was away when this was in the news.

The reason why I posted the question intinitially was because I was wondering if longboatkey, or other fodorites had heard of anything in the news over the past few days that I might have missed.

I think the future of the airline industry is grim. Higher airfares, fewer flight to choose from, more extra chargres and possibly more some mergers, allowing airlines just to stay a float.

Unfortunately, mergers/buy outs, etc leads to less competition, which isn't good for the flying public. Case in point - the Canadian aviation industry and the changes that have taken place since Air Canada took over Canadian Airlines.

Competition is good.

"Sorry but have you been living in a cave?"


Why do some posters have to be so snarky when somebody asks a simple question?

Would it have been so difficult to just answer the question w/o all the insinuations?

Every airline flying has financial problems at the moment, even those like Southwest who have obtained some temporary respite from fuel prices by buying forward hedge contracts. When those hedges expire, Southwest will join the rest of the majors in feeling the pain.

As long as fuel prices remain high (which is, most likely, for the rest of time) and the airlines adhere to slavish fare-matching for fear of losing market share, you'll see airlines in financial stress, with the weakest ones (which may well mean those with the least flexible management styles or route architectures) will look to other solutions, including bankruptcy protection, service reductions, fuel surcharges or nuisance fees, etc.

Eventually, however, prices will reach an equilibrium point, and supply v. demand for seats will come closer to balance. It will entail an adjustment of consumer behavior, just as consumers have adjusted to similar changes in other commodity or service prices. Movies cost $8 or $10 now while they cost $5 or $6 just a couple of years ago (and never mind the price of popcorn.) Yet we still pack the theaters. Adjusted behaviors and expectations.

As for AA, I think they're probably in okay medium-term shape. They're reducing service on money-losing routes, and accelerating the retirement of fuel-inefficient aircraft. If and when the NW-Delta merger is done, and in the face of Continental and United moving closer, North American passenger aviation will have a strikingly different face. <i>That's</i> when AA will need to be ready, and I expect they will be. You don't get to be the biggest airline in the world, and avoid bankruptcy while others (like every other legacy) tip in and out of it, without somebody with some smarts running the show.

Those of us who are frequent flyers on AA may sound cynical and negative at times, but in reality it's still my airline of choice most of the time, due to the quality of the people and the service, vs. other legacy carriers.

So, no, I wouldn't bail on AA just yet.