Audio By Carbonatix
More good new for American Airline and parent company AMR Corp.: On the eve of an announced settlement between Dallas and Fort Worth’s mayors regarding the Wright Amendment–a press conference is announced for tomorrow, as well as a city council thumbs-up concerning the deal–Standard & Poor’s gives the airline the buy-now atta-boy. Says here: “We expect the company to return to profitability in 2006, although rising oil prices create a risk. We also expect AMR to be strongly profitable in 2007.” Writer Jim Corridore offers several reasons why AMR’s a good buy with great earning potential right now, chief among them the fact AMR got a labor agreement in 2003 that “reduced employee costs by $1.8 billion,” has scheduled its flights to better utilize aircraft, has gotten rid of older planes and can stave off cheaper flights offered by cut-rate comers who can’t sustain flying at bargain-bin prices. Corridore mentions nothing, however, about American’s grumpy flight attendants and cardboard-box foodstuffs. –Robert Wilonsky
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