OPEC Catches Up To American Airlines

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

AMR (AMR), the parent of American Airlines, is off almost 12% today and trading at $21.44.

Last last week the company announced that passenger unit revenue would rise between 4% and 5% in the third quarter from a year ago. It added that fuel prices are likely to average $2.21 a gallon, lower than the $2.24 forecast in July, according to MarketWatch.

That was not enough to satisfy research firm Soleil Securities which said that the numbers pointed to higher than expected costs and lower revenue. The firm cut the price target on the airline from $33 to $24.

With oil prices likely to stay around $80, and perhaps move higher, AMR and its carrier brethren may have a long winter.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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