Search results for AMR
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Posted
Sep 16 2009, 04:03 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
 The global airline industry, still staggering from huge losses and bankruptcies late last year after oil prices passed $140 a barrel, is not doing much better in 2009. Low passenger traffic is the chief culprit, but crude at $70 after a sharp dip early in the year puts on significant additional pressure.
The International Air Transport Association (IATA) released its new forecast for worldwide airline losses this year and it moved up $2 billion to $11 billion. “The bottom line of this crisis – with combined 2008-9 losses at $27.8 billion – is larger than the impact of 9/11,” said Giovanni Bisignani, IATA’s Director General and CEO.
The industry is so heavily burdened with debt that weak demand during the upcoming holiday season will threaten to sink some carriers. Japan Air has already announced nearly 7,000 layoffs and the Asia carrier is looking for a cash infusion from AirFrance-KLM or a major US carrier–perhaps American Airlines.
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Posted
Jul 08 2009, 03:44 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Airline price wars are back, just when carriers cannot afford them. The price of jet fuel is up. Passenger traffic is down.
Southwest (LUV) is offering fares as low as $30 each way on short flights and $90 on longer ones.
Southwest, which has a strong balance sheet, may be able to afford cutting ticket prices to bring in customers. Larger carriers such as American (AMR) and United (UAUA) have huge debt burdens and are actually in the process of raising ticket prices and fees on items, including extra baggage, to make up for growing losses. A prolonged period of having to match low fares from discount carriers could drive the legacy airlines closer to the bankruptcies some investors already fear.
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Posted
Jun 30 2009, 07:46 AM
by
Minyanville
Money Blog: Top Stocks Blog - MSN Money
Here’s what I’m focused on this morning:
H&R Block (HRB):
Maybe there's some truth to that whole "death and taxes" expression.
Did you happen to see the company’s fourth-quarter numbers?
In the period ended April 30, it put up $2.09 a share, whereas analysts had been looking for $2.05.
Here are some other things that have me intrigued:
1. According to the release:
“Pursuant to the previously announced Board of Directors authorization to purchase up to $2.0 billion of the Company's common stock, during the fourth quarter of fiscal 2009, the Company repurchased 5.6 million shares at an aggregate price of $98.7 million, or an average price of $17.53 per share.”
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Posted
Mar 26 2009, 03:28 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
The airlines are struggling these days, much like everyone else.
In its effort to provide essential business and economic news and information to Minyans the world over, Minyanville.com has already covered the most critical trends, such as Ryanair (RYAAY) contemplating the first pay toilets inside commercial airliners.
As a frequent flier on US Air (LCC), I received a notice saying they were no longer going to charge for soda and water. Holy catfish. Not only is US Air unpopular with geese, they apparently wanted to antagonize the entire population (good thing they're stopping).
But what grotesquely overpaid executive thought up the idea of charging for soda and water in the first place? Probably the same executive who thought up in-flight pay toilets, which makes me suspect this advice could be coming from roaming consultants.
This is the kind of stuff you just can’t make up. The severity of the economic pinch on airlines is no secret. But some of this is getting ridiculous.
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Posted
May 21 2008, 04:49 PM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
A week ago, I blogged that the stock market rally from mid-March could continue for some time -- if oil prices would cooperate.
They haven't. Crude oil closed Wednesday at $133.17 a barrel, and stocks tumbled, with the Dow Jones Industrial Average falling 227 points. Things could get worse.
Here's why the stock market could test the lows of mid-March, amid the worst of the Bear Stearns crisis:
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Posted
Apr 10 2008, 01:10 PM
by
Robert Walberg
Rating:
Money Blog: Top Stocks Blog - MSN Money
In the words of Ricky Ricardo, the CEO of AMR Corp. has "some 'splainin' to do." Whether you believe the parent of American Airlines is merely the victim of a reactionary FAA or not, the fact of the matter is that management had 18 months to comply with the FAA's request regarding the wiring on the MD-80s and failed to act.
Yes, the planes have been flying safely for years, and yes, the FAA is likely overreacting to criticism from Congress after it was made to look inept in the Southwest Airlines debacle a few weeks back. Nevertheless, the single most important task of any airline CEO is public safety. Failing to address a potential safety risk merely because you didn't think you would get caught is a miserable excuse.
Maybe AMR's management simply thought the cost of fixing the problem would be too high -- especially since the FAA really hadn't checked that carefully in the past. With jet fuel costs skyrocketing and the economy slumping, spending more money on maintenance that didn't seem necessary had to be a tough pill to swallow. So AMR chose not to take its medicine in small manageable doses over the past 18 months in hopes that the problem would just go unnoticed.
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Posted
Mar 11 2008, 08:53 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Several companies in the airline and auto sectors could face bankruptcy this year with American Airlines and Ford at the head of the list
American Airlines dropped 10% yesterday to hit $10.20. The shares have not been at that level since 2004. American lost money three of the last five years. It had a small net profit in 2007 of just over $500 million on $22.9 billion in revenue. The margin is razor thin.
In 2007, American also had interest expense of over $900 million. Long-term debt is about $9.4 billion.
In an industry which is as well-known for its bankruptcies as it is for its bad food, 2008 is shaping up as a truly awful year. Fuel prices are rocketing as oil passes above $107 a barrel. The recession is likely to put a drag on passengers, both business and pleasure. The $500 million that American made last year could turn to a loss of several billion in the blink of an eye.
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Posted
Jan 07 2008, 12:38 PM
by
Robert Walberg
Rating:
Money Blog: Top Stocks Blog - MSN Money
In response to a public relations nightmare last February, JetBlue's management team enacted a customer bill of rights to help restore confidence in the airline. It was a bit gimmicky, but the effort seemed to work as the company just announced a 15% year-over-year jump in revenue passengers for 2007.
Hopefully, management has another gimmick or two up its sleeve to address the nightmarish performance of its stock. Despite the operational improvement, JetBlue's stock is now trading at about $5 per share -- down a whopping 64% over the past 52 weeks. Being trapped on a grounded plane for 10 hours seems painless by comparison.
Of course, JetBlue isn't the only airline to see its stock crash and burn over the past year. AMR Corp, Continental Airlines and Alaska Air Group have tumbled by 60%, 55% and 43%, respectively. High fuel prices, an uncertain economy and changes in regulations have contributed to a very turbulent year. Yet JetBlue was supposed to be different. With leather seats, expanded leg room and free satellite TV/radio for all passengers, this company was supposed to revolutionize the airline industry. So why has JetBlue been more revolting than revolutionary?
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