Shares of American Airlines parent AMR Corp. surpassed the price they reached the day before the Sept. 11 terrorist attacks as the world’s largest carrier benefits from more than five years of retooling.
“AMR has built itself a huge cash position and done a good job cutting its costs,” Jim Corridore, a New York-based airline analyst with Standard & Poor’s, said today in an interview. “The outlook has really brightened for the airlines that have done the hard work.”
American is simplifying operations after posting more than $8.2 billion in losses from 2001 through last year. The Fort Worth, Texas-based company cut its workforce by 27 percent, reduced its aircraft fleet by 16 percent and built its cash position to $5.5 billion as of Sept. 30.
source: Orlando Sentinel