To AA Frequent Flyer
Jan 23rd, 2003, 03:42 PM
#1
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To AA Frequent Flyer
Red skies for American Airlines <BR>Analyst points to labor concessions as future catalyst <BR>By August Cole, CBS.MarketWatch.com<BR>Last Update: 5:17 PM ET Jan. 23, 2003 <BR> <BR> <BR>DALLAS (CBS.MW) -- Shares of AMR Corp. fell for a third-session Thursday, a day after the No. 1 airline reported narrower-than-expected quarterly losses as executives made clear much more cost-cutting is needed to keep the airline aloft.<BR><BR> <BR>"Unsustainable" was the key word used by CEO Don Carty to describe the company's latest losses. Though his message was ostensibly for investors, it also was a way of alerting employees and customers that the company is serious about taking drastic action. <BR><BR>Wall Street got the point, too, as the stock fell more than 20 percent in Wednesday's session. A day later, the issue closed down 11 cents, or 2.9 percent, to $3.66 on volume of 7.26 million shares. <BR><BR>Amid mounting pessimism about the industry's prospects with or without a military campaign against Iraq, AMR Corp. (AMR: news, chart, profile) shares are down 37 percent in this holiday- shortened week alone. The Amex Airline Index also gave up its gains for the year on Wednesday.<BR><BR>American Airline's top management says it's halfway toward cutting $4 billion in costs. Yet the remaining $2 billion is going to be a challenge. <BR><BR> <BR>
Jan 23rd, 2003, 04:06 PM
#3
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I totally agree, but, don't think that any of the other majors are sitting pretty. They ALL hired BK lawyers, in case this war thing happens. AMR has the most cash reserves, so they are good for at least a year to 1.5, longer if all the cutbacks work-out and economy gets better, so I'm not loosing any sleep over my 250K miles that I have saved up at this moment. As a matter of fact I'm doing a mileage run to Paris in couple of weeks, $425 in return for 40K miles total and getting 15K to count towards my elite status for 2004. Happy flying!
Jan 23rd, 2003, 04:56 PM
#5
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To COair@boy... I am a fan of Continental Airlines, too! When I fly domestic, I either fly Continental or Delta Airlines only. I was reading an article on 'airwise' airline news and read about Continental Airlines made an agreement with their mechanics union to give them raises! I personally, feel much more comfortable that the morale of the mechanics will be better with their much deserved raises. That means they will be efficient in making sure Continental Airlines planes are safe to fly for all passengers! Raises makes everyone happy! (Because I am a member of the Air France Frequence Plus, I can fly Delta domestically and accumulate miles, so I am glad Delta is not as bad off as United or American.)<BR><BR>Vive le Continental!
