Shares In American Airlines' Parent Company Sink | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Shares In American Airlines' Parent Company Sink

As fears spread that American Airlines may be headed for bankruptcy proceedings, shares in the airline's parent company, AMR Corp., plummeted by 41 percent before closing at $1.98 Monday — a 33 percent drop in its value.

The stock hadn't closed below $2 since 2003, according to the Associated Press.

The volatile drop was so steep that trading in AMR shares on the New York Stock Exchange was halted seven times, according to The Chicago Tribune. The NYSE halts trading on companies whose stock drops by more than 10 percent in five minutes.

The Tribune quotes an AMR rep:

AMR spokesman Andrew Backover acknowledged the speculation but declined to say whether AMR was considering Chapter 11.

"Regarding rumors and speculation about a court-supervised restructuring, that is certainly not our goal or our preference," he said. "We know we need to improve our results, and we are keenly focused as we work to achieve that."

Although AMR typically does not comment on its stock prices, Backover noted "there is no company-driven news that has caused the volatility in AMR shares today."

Analysts say the company's shares were also driven down by an expectation that airline travel would slump this fall. And in a broader sense, worries over Europe's debt crisis and an upcoming U.S. jobs report brought a day of broad market declines.

Earlier this year, American Airlines announced what it called "the largest aircraft order in history," in a plan to buy 460 new fuel efficient, narrow-body aircraft from Boeing and Airbus, with the airline taking delivery between 2013 and 2022.

Copyright 2011 National Public Radio. To see more, visit http://www.npr.org/.

NPR

'Save Us, Save Us': A Poem For The Migrants Lost At Sea

We asked poet Craig Morgan Teicher to find a poem to illuminate a recent news event. He says the capsized boat in the Mediterranean Sea made him think of Derek Mahon's "A Disused Shed in Co. Wexford."
NPR

PepsiCo Swaps Diet Drink's Aspartame For Other Artificial Sweeteners

The company says Diet Pepsi consumers are concerned about aspartame. But the Food and Drug Administration has long affirmed that the sweetener is safe in amounts commonly used by beverage companies.
NPR

Surgeon General Vivek Murthy On Gun Control, Vaccines And Science

Surgeon General Vivek Murthy was officially sworn in this week. His confirmation was held up for more than a year because of comments he made about gun violence. Murthy talks with NPR's Scott Simon.
NPR

At The Heart Of A Watch, Tested By Time

Watchmakers have long thrived by selling timepieces that will be cherished as family heirlooms. But, if pragmatism rendered the pocket watch obsolete, what happens when watches become computers?

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.