PBH / colombia (travelguide, pictures) / post

More trouble for American Airlines

AMR Corp. will record a second-quarter charge of $1.1 billion to $1.2 billion as it writes down the value of its smallest regional jets and its aging fleet of McDonnell Douglas MD-80 aircraft.

In addition to those noncash charges, AMR said it will incur $70 million in severance-related expenses as it cuts its workforce of 85,500 full-time equivalent employees by about 8 percent, or more than 6,500 jobs.

Fuel must come down or the industry is going to be worst shape.

By BillBigD on Jul 2, 2008, 17:51 in Friendly Talkzone.

tejasmarcos says on Jul 2, 2008, 18:24:

there will be a few players exiting the game. others will merge...

trying to walk a straight line on sour mash and cheap wine...

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harvardexec says on Jul 2, 2008, 19:35:

Otherwise known on Wall Street as MURDERS AND EXECUTIONS.

BillBigD you are correct, fuel must come down or the industry will be in poor financial condition. Analysts predict the future increase in the demand for fuel will not be offset by increased supply. As a result, we can expect higher fuel costs and less airlines in the future.

As a result - Natural Selection for the Airline Industry.

"I'm going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated."-John McCain

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Alex Delgado says on Jul 7, 2008, 11:14:

This will make the few left standing more powerful. Like Juan Valdez Amigos, if you want to travel pack your mules!

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