If you’re an American Airlines stockholder, then you’ll probably be feeling the vultures circling with the 33% drop in share value yesterday, on fears that AA’s parent – AMR may have to seek Chapter 11 Bankruptcy Protection.
At one point, shares in AMR dived by 41%, with share trading halted. The problems AMR has are the twisted combination of high debt, sluggish demand and losses after loss, with analysts suggesting that losses will continue well into 2012.
Lots of different rumours are thought to be at the centre of the sell-off.
An AMR spokesperson stated that Chapter 11 bankruptcy “is certainly not our goal”.
For everyone involved at AA – I hope it doesn’t turn into Chapter 11. But these are hard times for everyone, anything could… and probably will happen.
