AMR Corp (AMR)

GGGilmore (59.27) Submitted: 10/22/2008 1:12:47 PM : Start Price: $11.92 AMR Score: -65.71

I recently flew out to Washington, DC on American Air and saw the effect of the airlines taking a lot of planes out of service. I flew 4 segments and every one of them was 100% full. My wife today flew out to Phoenix with our grandson to visit her parents. She asked me if I was able to get her 2 seats in a 3 seat row with an empty middle one. I laughed. There wasn't a freebie empty middle seat on any of the 4 flights that she was taking. In fact, when I checked her in yesterday online there was only one flight that even had one seat still up for sale! This is on Wednesday - the middle of the week. The planes are FULL, the price of jet fuel should be about 1/2 of what it was in July, the extra bag and other fees are flowing in, and all the other airlines have cut back as well (although I'm sure there was no conspircy to do so - HA!) so the profits should be rolling in enough to make this stock go up in the short term. Of all the airlines, I think American is one of the strongest. They seem to be able to charge more for their tickets and still fill up their planes. Also, I don't see where they screwed up like Southwest and made big hedging bets against failing oil prices.