American Airlines denies bankruptcy reports
American Airlines has denied reports that its parent company, AMR Corp, could file for bankruptcy protection. The carrier is reportedly struggling with high fuel and labour costs, and has seen approximately 200 pilots leave in the past few months. AMR Corp posted a loss of US$286 million for the second quarter of 2011.
The AFP reported the company as saying yesterday that there was no truth in the bankruptcy rumours, and that a court-guided restructuring was “not our goal or our preference”.
This didn’t ease the fears of investors however. The company’s stock was down 33.1% at US$1.98 yesterday.
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