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