AMR loses $390M in 2Q

[Bear96]

Not all reductions result in layoffs. Theres always going to be a certain amount of attrition. If you shrink slowly you can shrink without anyone losing their jobs.

To shrink to a profitable size will require layoffs. Attrition won't cut it, especially in this economy where attrition is way down.

And by "shrink" I don't necessarily mean individual airlines getting smaller. I am talking more on an industry-wide level. That can happen with a major player simply shutting down (which, of course, would certainly mean layoffs).

 

[eolesen]

Ha! Let the industry shrink... that's a good one...

The jobs which replace those currently at AA are far more likely to be filled by non-union guys like Roberto Nunez and Hector Duarte, and be based in places like MCO if not in BOG or SJO, which won't do much for the guys in JFK or TUL.

 

[Bob Owens]

Ha! Let the industry shrink... that's a good one...

The jobs which replace those currently at AA are far more likely to be filled by non-union guys like Roberto Nunez and Hector Duarte, and be based in places like MCO if not in BOG or SJO, which won't do much for the guys in JFK or TUL.

The Airlines overexpanded just like the rails did 100 years earlier.

Will foreign maint expand? Sure, but most of that expansion will be to service their own stuff, most of the projected growth in Aviation is expected to happen outside of the US. The unions have failed to capitalize on the lack of background and drug tests on workers who are working in MRO facilities overseas. The US public supports the idea of having the work done here, if the unions pushed the safety and security issues through the media there would be even more support.

 

[frontline]

AMR's results did beat the analysts' expectations.

Ooooohh... if we beat analysts expectations we must have enough cash for huge raises!

What many of my brothers fail to understand is that right now we can have jobs or raises, but not both. Wage increase = furloughs or bankruptcy, either way many of the junior guys suffer. I could be selfish and say yes, I want a big raise because I'll never get furloughed, but I don't see any fraternal spirit (or fairness) in that.

 

[FrequentFlierCA]

I predict a bloodbath this winter. Summer bookings have been horrible so the fare sales and mileage promotions will be coming fast and furious in the low season. End of year could see more record losses and maybe even one or two Chapter 11s.

The big questions are:

* How long will the cash piles last?
* What's left to mortgage to potentially raise new funds?

AMR is looking relatively solid on those two points for now, but another oil spike could change that quickly.