TBM-Legend
4th Oct 2011, 13:12
American Airlines Bankruptcy Fears Drive Down Stock
By JAD MOUAWAD
Published: October 3, 2011
Shares in American Airlines’ parent company tumbled 33 percent on Monday on fears that the airline could be forced into bankruptcy as a slowing economy reduced demand for seats on its planes.
:rolleyes:The sell-off reflected investors’ increasing nervousness that American Airlines, with high debt levels and high labor costs, might be too weak to weather another economic downturn. Its competitors, meanwhile, have consolidated and strengthened their share of the airline market.
The decline on Monday was the steepest drop for American’s parent, the AMR Corporation, in a decade, and it precipitated a general sell-off in airline stocks throughout the day. AMR shares closed at $1.98 after setting off repeated automatic trading halts meant to prevent widespread losses.
By JAD MOUAWAD
Published: October 3, 2011
Shares in American Airlines’ parent company tumbled 33 percent on Monday on fears that the airline could be forced into bankruptcy as a slowing economy reduced demand for seats on its planes.
:rolleyes:The sell-off reflected investors’ increasing nervousness that American Airlines, with high debt levels and high labor costs, might be too weak to weather another economic downturn. Its competitors, meanwhile, have consolidated and strengthened their share of the airline market.
The decline on Monday was the steepest drop for American’s parent, the AMR Corporation, in a decade, and it precipitated a general sell-off in airline stocks throughout the day. AMR shares closed at $1.98 after setting off repeated automatic trading halts meant to prevent widespread losses.