Moody's lowers outlook on AMR Corp. to 'negative'

[Hatu]

NEW YORK (AP) -- Moody's Investors Service on Monday changed its outlook on American Airlines parent AMR Corp. to "negative," saying it expects the airline to burn more cash as it deals with high costs while paying off debt and buying new planes.

AMR shares fell 5 percent in afternoon trading.

Moody's reduced the company's liquidity rating but upheld the previous corporate credit and default ratings.

It warned, however, that it could downgrade AMR if the company can't boost credit measures or keep enough cash.

http://finance.yahoo.com/news/Moodys-lowers-outlook-on-AMR-apf-2812501740.html?x=0&.v=1

 

[FrequentFlierCA]

I think the outlook will be negative until there is some medium-term cost certainty in the form of new labor contracts with all three unions.

 

[Frank Szabo]

I think the outlook will be negative until there is some medium-term cost certainty in the form of new labor contracts with all three unions.

... which Centrepork will never get unless they either come up with some money and benefits that were stolen by false pretense in 2003 or by filing for bankruptcy which won't happen, not because of available cash but because of egos.

Speaking of market rates - how much is a group of failures pretending to be management worth these days?

 

[PhatSappy]

Moody's has been negative for some time, on everybody.

 

[damajagua]

And JP Morgan too:

WASHINGTON (MarketWatch) -- J.P. Morgan slashed its financial outlook for American Airline parent AMR Corp. on Friday to reflect a mild U.S. recession, but raised its 2012 earnings forecast for several other network carriers. AMR is now expected to post a 2011 loss of $4.03, versus a prior view of a loss of $3.51, J.P. Morgan wrote in a note to clients. Next year the Ft. Worth-based carrier is predicted to post a loss of $4.62 a share. US Airways LCC +5.85% , however, is now expected to post a 2011 profit of 34 cents a share, versus a 21-cents-a-share loss expected previously, as the carrier improves its cost structure. Alaska Air ALK +3.57% , Delta Air Lines DAL +6.27% and United Continental UAL +5.30% are also expected to improve margins, benefitting next year's results.

 

[strikeforce]

And JP Morgan too:

WASHINGTON (MarketWatch) -- J.P. Morgan slashed its financial outlook for American Airline parent AMR Corp. on Friday to reflect a mild U.S. recession, but raised its 2012 earnings forecast for several other network carriers. AMR is now expected to post a 2011 loss of $4.03, versus a prior view of a loss of $3.51, J.P. Morgan wrote in a note to clients. Next year the Ft. Worth-based carrier is predicted to post a loss of $4.62 a share. US Airways LCC +5.85% , however, is now expected to post a 2011 profit of 34 cents a share, versus a 21-cents-a-share loss expected previously, as the carrier improves its cost structure. Alaska Air ALK +3.57% , Delta Air Lines DAL +6.27% and United Continental UAL +5.30% are also expected to improve margins, benefitting next year's results.

Just great.....now it's some other crooked bank slashing AMR's outlook. BTW, it took this long to figure out AMR is in trouble...no wonder we're in a financial calamity. Moody's, S&P, JP Morgan.....who's rating the rating agency's????? Matter of fact, If the rating agencies were real smart they would interview the company employee's to get a good sense of how screwed up these company's really are. Just ask me, I dare you!!! OK

Analysis......AMR


Management .....horrible

Bankruptcy.....good bet

Stock price.....in toilet

DON'T BUY!!!!

 

[Frank Szabo]

And JP Morgan too:

WASHINGTON (MarketWatch) -- J.P. Morgan slashed its financial outlook for American Airline parent AMR Corp. on Friday to reflect a mild U.S. recession, but raised its 2012 earnings forecast for several other network carriers. AMR is now expected to post a 2011 loss of $4.03, versus a prior view of a loss of $3.51, J.P. Morgan wrote in a note to clients. Next year the Ft. Worth-based carrier is predicted to post a loss of $4.62 a share. US Airways LCC +5.85% , however, is now expected to post a 2011 profit of 34 cents a share, versus a 21-cents-a-share loss expected previously, as the carrier improves its cost structure. Alaska Air ALK +3.57% , Delta Air Lines DAL +6.27% and United Continental UAL +5.30% are also expected to improve margins, benefitting next year's results.

Gee - what was their first clue?

 

[damajagua]

I don't think it's a matter of if but when are they going
to file?

 

[robbedagain]

its just a matter of time but from the article it sure sounds like the only reason they'd file is just to get rid of the contracts and possibly the pension. thats just how im reading it. but when they file I sur ehope you guys get a better deal than what we got at US both the 05 and 08 contracts