OPEC Catches Up To American Airlines
September 24, 2007 by Douglas A. McIntyreAMR (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
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.