More positive 2006 earnings estimates.

[Hatu]

Merrill Lynch airline analyst Michael Linenberg said that he expects AMR Corp. to earn a profit next year of $1.15 a share and boosted the price target on the stock to $25 from $18. Merrill had expected AMR to lose $3.50 a share in 2006.

http://www.marketwatch.com/news/yhoo/story...0D07C1F0D797%7D

From a $3.50 loss to a $1.15 profit - that is a big change!

We've heard the same before - "next year is the year". Hopefully, next year will be the year things turn around.

 

[Hopeful]

Oh this is going to be very interesting when the contract is opened. I bet the TWU will use this information to force the company to return all the concessions plus a big fat raise.


Yea right!

 

[eolesen]

Oh this is going to be very interesting when the contract is opened. I bet the TWU will use this information to force the company to return all the concessions plus a big fat raise.
Yea right!

Too bad that most of the $200M profit will go towards paying down about 10% of the long term debt that we're obligated to start repaying in larger tranches starting in 2007.

Oh yeah, I forgot -- Bob Owens said that it's fiscally prudent to be perpetually in debt, so assuming it all goes to the employees (and screw the shareholders entirely) -- that works out to $2500 per employee before taxes.

Woo hoo!

Personally, I'd rather see the debt paid off so that AA can start ordering 787s and start retiring the 767-300's and 757-200's before they turn 30 years old.