Remember back in 2003 when AMR's market cap got down to like 200 million dollars? I live in San Diego and at the time I was thinking the Chargers Football team was worth more than American Airlines. And I was thinking how much more stuff AMR had. Then I said....think of all the DEBT!! I passed. AMR are went on to recover fairly quickly and I missed the boat. Well I think AIR was fairly depressed around the same time.
Here we go again. These air carriers are in for some tough sledding. They have trouble making money when times are good. It doesn't appear oil is going to go down significantly in the near or far future. How will these factors help AAR?
AMR? And ten years? Makes no sense at all. But, to your point, AIR is up approx 400% over five years (as are its earnings), AMR is about even over five years. For those interested in a better comparison, look at TGI. I added to both positions (AIR and TGI) today. Good luck longs.
On a short term basis I think this is out of steam on the down side. I think the odds of this going higher from these levels are much better than it going lower. I think this is gonna pop a couple of bucks over the next few weeks. Hope I'm right. Good luck.