AMR shares halted after huge plunge
Investors are waiting for news of the latest negotiations between American Airlines and its pilots.
Shares of the airline's parent, AMR Corp. (AMR), were briefly halted Monday after falling as much as 11%. The drop was so intense that it triggered an automatic circuit breaker to keep other shares from falling as well.
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Shares were slightly recovered at midday but still down about 6% to $2.76.
While concerns about the economy have been the main drag on AMR shares lately, Monday's plunge was related to the airline's contract negotiations with pilots, Bloomberg reported. Talks began more than five years ago, but now they seem to be reaching a critical point. Negotiators worked over the weekend.
An unusually large number of pilots have retired, and American was trying to waive some contract agreements to cover the shortage, Bloomberg reported. But investors were leery, especially after no news of any agreement yet.
American is generally viewed as the weakest financially of the large airlines. It's one of the few airlines that haven't declared bankruptcy in the past decade, and as a result its costs for just about everything -- including pilot payrolls -- are higher than those of its rivals.
The economy has been a big concern for AMR investors. Companies are still cutting corporate travel, and as the odds of recession top 50%, there are worries about consumer travel as well.
Other airlines were struggling as well. Shares of Delta Air (DAL) were down more than 2% in midday trading to $8.37. United Continental (UAL) saw a 3% drop to $20.17, and US Airways (LCC) fell more than 4% to $5.78. But Southwest (LUV) was mostly unchanged at $8.59.
to drinking your own brand of Koolaid,
the 1% own homes too, and
market circuit breakers prevent widespread losses, which if were to occur will further hurt the prospects of the 99% so think a little bit before just posting some more shoot from the hip, empty headed, inflammatory liberal hype
So, they put in an automatic trigger to prevent the stock from falling TOO FAR to protect the shareholders from losing their BILLIONS. Another example of manipulation at its finest. Where is the circuit breaker to protect the value of our homes? The value of our jobs?
Oh, yeah. The 99% don't qualify for circuit breakers. The 1% just let us crash to the bottom
Hmm. Lets see. Who BENEFITS from a circuit breaker going off.
If AMR stock was to plunge 50%, which class of people would be hurt the most? The people living paycheck to paycheck? The rich wealthy people (CEO, etc..) who own millions of shares?
Oh, yeah. Most people making $12.50/hour working 2 jobs have millions of shares of AMR in their 15 BILLION dollar portfolios. *Smacks forehead* Silly me.
Why do we care if AMR has businss problems causing their stock to plunge 50%? If AMR goes bankrupt, it won't matter. They will get bailed out via restructuring and come back again. How many small mom/pop companies have bad business dealings that cause their businesses to fail and delcare bankruptcy to never surface again, EVER?
Circuit breakers protect the portofios of those who own the stocks, or the fund managers who rely on them. The crooks involved in manipulation got out before the stock plunged. The circuit breaker is nothing more than a chance for the people who didn't get the inside memo a chance to get out. Circuit breakers do nothing to protect the average citizen, or do not financially benefit those who own $500 in a company's stock.
Time to start thinking outside of the box that the R's draw for you. And funny you spout about liberal hype. I hate the Dumocrats as much for their stupid ideas and spout that, but you are so sickened with the Repulicon disease, you automatically assume that someone who even looks crosswise at one, must be the "enemy."
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The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
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