AMR, others sink to new lows

[Barfbag]

Airline shares see sharp loses after JP Morgan downgrades
09:46 a.m. 03/12/2008 By Christopher Hinton Provided by


NEW YORK (MarketWatch) -- Airlines shares were losing their prior-day gains Wednesday morning after a J. P. Morgan report that the sector's revenue could decrease by 6% to 7% in a recession, downgrading several big names to underweight. The Amex Airline Index (XAL) was down 4. 7% at last check to 27. 17 points with all of its 14 components in the red. On Tuesday the index rallied 2. 74% to close at 28. 50 points.

 

[WingNaPrayer]

Keep goin' down down down baby, I want another 100,000 shares!

 

[NewHampshire Black Bears]

I'm NOT "picking" on ANY airline when I PREDICT this, because "what ever is going to happen..WILL happen"

But I think we should make a "poll", to see which company(s) fold up their TENT...first,....among the 7 "majors"

The FIRST one will come from this group of 4.--- DL/CO/UA/US

 

[TIME FOR CHANGE]

8
7
6
Then 3
Ouch

resistance is futile

 

[FWAAA]

I thought it was odd that so many airlines were up on Tuesday despite skyrocketing oil prices - airline stocks followed the broader market.

Today, however, is a different story. Alaska off 18%, DAL and NWA both off 16% to new lows and AMR off 12.75%.

Yesterday's spot prices for jetA were $3.21 at NYC, $3.20 at LAX and $3.17 on the Gulf Coast. Just under six times more expensive than 10 years ago.

 

[LGA Fleet Service]

I'm NOT "picking" on ANY airline when I PREDICT this, because "what ever is going to happen..WILL happen"

But I think we should make a "poll", to see which company(s) fold up their TENT...first,....among the 7 "majors"

The FIRST one will come from this group of 4.--- DL/CO/UA/US

Pffft...there won't be any airlines actually going out of business like Pan Am or Eastern, anyone that files will languish in bankruptcy for as long as they legally can, slashing salaries and dumping debt all the while.Except for salaries at the top, lord knows those employment contracts are sacrosanct and can not be trifled with, lest the airlines lose any of their 'talented people' or fail to attract similarly 'talented' people from other carriers.

 

[BoeingBoy]

Except for salaries at the top, lord knows those employment contracts are sacrosanct and can not be trifled with, lest the airlines lose any of their 'talented people' or fail to attract similarly 'talented' people from other carriers.

Oh, don't worry about keeping the "talent". On top of the untouchable exec contracts, they'll offer retention bonuses because, well, gee whiz - these "talented" people may just leave if we don't......

Jim

 

[The Goose]

Oh, don't worry about keeping the "talent". On top of the untouchable exec contracts, they'll offer retention bonuses because, well, gee whiz - these "talented" people may just leave if we don't......

Jim

That's the problem - this so-called "talent" is killing the industry.

 

[NewHampshire Black Bears]

"SIGH",,

I keep hoping that I'll wake up to the "today show", some morning soon, and see..ol' (uncle) Bobby's Puss on the screen, while Matt Lauer says.............."This Morning, former AMR chief....Robert CRANDALL is returning to the helm of Fort Worth Texas based American Airlines".......................

Hey, Hoping is FREE !!

 

[WingNaPrayer]

Hey, Hoping is FREE !!

So is an enema, if you have a garden hose! This is not the time for Crandal.

 

[AAStew]

Bob Crandall still has his finger in our pot "per se". He is a senior advisor and on the board of AirCell, this is the company that installed the WIFI Broadband on one of our airplanes, and will be installing it systemwide later this year.

 

[super80fa]

I just don't get it. I keep seeing these press releases from Lufthansa,British Airways,Air France, etc and they are all reporting big profits. What are they doing so different from the airlines here in the U.S.? Don't they also have big fuel bills? And, most of the time their employees are paid a decent wage. Why can they make money and we can't? God knows it isn't because of U.S. carriers paying high wages. :angry:

 

[NewHampshire Black Bears]

Hey, Hoping is FREE !!

So is an enema, if you have a garden hose! This is not the time for Crandal.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

"Crandal = CRANDALL" (FYI)

The Industry is ALREADY in shark Infested Waters(OIL), and Is DEFINITELY gonna' get WORSE !!(Capitalism at ANY CO$T, you know), So in these "times" there Isn't another guy in the WORLD that I rather have in the wheelhouse than CRANDALL.
Absolutely he'd make some "eye opening decisions", and have 1/2 the work force wishing he was DEAD, ...but "tough times beget Tough decisions"

As for GER..AAAAHD, all I see from him, is a ton of "Can't we all just get along" speeches to the "LEMMINGS"( A LOT of "lemmings" in Tx/Ok/Mo(mci), dontcha know) !!

For the record,..........yes I DID sing GA's praises, since RLC was responsible for where he is at the moment !

 

[JAFA]

I just don't get it. I keep seeing these press releases from Lufthansa,British Airways,Air France, etc and they are all reporting big profits. What are they doing so different from the airlines here in the U.S.? Don't they also have big fuel bills? And, most of the time their employees are paid a decent wage. Why can they make money and we can't? God knows it isn't because of U.S. carriers paying high wages. :angry:

There are many reasons that we see this disparity, but here are a few of the more obvious ones.

1. Oil is priced in USD which we all know has tanked against the EUR and GBP
2. US ompanies carry billions of dollars worth of benefits obligations that in most EU countries are carried by the government
3. Many foreign carriers try to maintain a market distinction with their service making it clear they are NOT a LCC rather than the US one product fits all mentality.

There are many other factors, but frankly these are the big ones.

 

[kirkpatrick]

There are many reasons that we see this disparity, but here are a few of the more obvious ones.

How about, their fares are, for the most part, much higher than on comparable stage lengths in the US. LCC's aren't nearly as prevalent over there.

MK