After many months of denying any real threat of bankruptcy, American Airlines officials have admitted the possibility of bankruptcy is very real. The Texas based airline has struggled for years to maintain profitability and was among the first to begin drastic, cost-saving cut backs and additional consumer fees to thwart off financial trouble. Now that economic conditions remain bleak, the airline can no longer fight off the rumors of a possible bankruptcy.
The Costs Of Doing Business
American Airlines stock (AMR) fell 6.6 percent yesterday for the fourth decline in a six day trading session. Hovering around $2.69 a share the AMR stock has been suffering since 2008, where it has seen a steady decline of over 40 percent. With nearly $10 million in debt, American Airlines officials continue to stand behind the idea that bankruptcy is not “a goal or preference”, but is also realistic about the fate of the company without it. Officials are working daily to explore alternatives and develop ways to improve their financial situation without the need for bankruptcy protection.