American Airlines shares slump
Oct. 24, 2011, Dallas, Tx. - Shares of American Airlines parent AMR Corp. were down more than 5 per cent in Friday afternoon trading, faring worse than other airline stocks.
A Morningstar analyst is adding to speculation that the company is heading toward bankruptcy. The analyst says AMR will run short of cash to pay big liabilities, including pension contributions.
AMR reported Wednesday that it lost $162 million in the third quarter, its fourth straight losing quarter and 14th out of the last 16.
The company hopes to begin controlling runaway costs by negotiating a deal with union pilots that would include more flying hours and other changes.