Broke 13$ yesterday, holding just under 13$ right now. Lets hope it keeps this trend.
AMR Corp. (AMR: news, chart, profile) added 6.2% to $12.94. Prudential Equity Group analyst Bob McAdoo wrote in a research note Thursday that he expects the company to earn a profit in the June and September quarters. Jet fuel prices are expected to be lower than the parent of American Airlines had expected, McAdoo wrote.
Oil prices have trended below $50 a barrel recently, lower than the April levels of $58 a barrel when AMR said it expected $1.70 a gallon jet fuel, McAdoo wrote. He expects a 31-cent profit in the second quarter and a 33-cent profit in the third quarter.
And Bear Stearns analyst David Strine wrote that AMR should benefit from small airfare increases, even as little as $5. Such a hike in its domestic network gives the company another $44 million in revenue.
"Next week, when May unit revenue results begin coming in, we expect significant year-over-year improvement that could cause 2Q RASM [revenue per available seat mile] estimates to rise," Strine wrote. "We believe Continental's May RASM could be up 5% or more year-over-year and that the industry will be up in the low-to-mid-single digits."
AMR Corp. (AMR: news, chart, profile) added 6.2% to $12.94. Prudential Equity Group analyst Bob McAdoo wrote in a research note Thursday that he expects the company to earn a profit in the June and September quarters. Jet fuel prices are expected to be lower than the parent of American Airlines had expected, McAdoo wrote.
Oil prices have trended below $50 a barrel recently, lower than the April levels of $58 a barrel when AMR said it expected $1.70 a gallon jet fuel, McAdoo wrote. He expects a 31-cent profit in the second quarter and a 33-cent profit in the third quarter.
And Bear Stearns analyst David Strine wrote that AMR should benefit from small airfare increases, even as little as $5. Such a hike in its domestic network gives the company another $44 million in revenue.
"Next week, when May unit revenue results begin coming in, we expect significant year-over-year improvement that could cause 2Q RASM [revenue per available seat mile] estimates to rise," Strine wrote. "We believe Continental's May RASM could be up 5% or more year-over-year and that the industry will be up in the low-to-mid-single digits."
