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Besides the laundry list for not investing in airlines at all (umm, let's see: oil money, less spending money in a recession, huge overhead costs, terrorism fears, etc...), the big airlines - Continental, United, Delta, and the like - have been dragging for years. And now they have fresh competition even WITHIN the industry, like JetBlue and Southwest, to deal with - companies that are cheaper, friendlier, younger and more agile - and who don't necessarily charge you an extra $25 to check a single bag. On top of this, ask anyone who frequently flies overseas whether they'd prefer ANY big European airline over ANY American one for any kind of travel - I'd bet money on anything but American.
Additionally, American has the oldest fleet among all domestic carriers (was the second oldest until the acquisition of NWA, which was the oldest). When those planes need to be replaced in the next decade or so, how are they going to pay for it?