American Airlines Group Inc (AAL)

[schaub]

I'm somewhat confused as to why many thing AMR is going to file BK? I actually talked to an AMR pilot today and had a detailed conversation with him about what has recently occurred. He said the whole stock dump was a knee jerk reaction, thanks to the media. They had a certain amount of planned retirements per month, but more decided to leave early to lock-in the current stock price. The media and WS "assumed" the pilots knew something and started the rumor that BK must be in the talks. Which in turn cause a major selloff. He said they have over 5B in the bank and have restructured much of their debt to lower payments. Also, they have enough cash to take them well into late next year. They just ordered airplanes and are looking into the B787's. He did note that they are not in the best of financial position and are burning cash, but feels they are in no immediate danger of BK. Some type of merger or codeshare would help tremendously. I also listened to an airline analyst several days ago stating that AMR is in no immediate danger to BK. What the analyst said was almost identical to our conversation today. The media hyped this.
I feel they will be fine, but they do have a long road a head of them