(Reuters) – Shares of American Airlines parent AMR Corp (AMR.N) fell as much as 41 percent on Monday on growing fears the third-largest U.S. airline is headed for bankruptcy, although the carrier said Chapter 11 is “not our goal.”
The stock’s decline to its lowest price since 2003 outpaced the share losses of rivals, which also suffered on worries that economic weakness could hit travel demand this fall.
“When can they stop the bleeding of cash?” asked Basili Alukos, an equity analyst at Morningstar. AMR had a second-quarter net loss of $286 million, while rivals showed profits.
AMR spokesman Andrew Backover acknowledged the speculation but declined to say whether AMR was considering Chapter 11.
“Regarding rumors and speculation about a court-supervised restructuring, that is certainly not our goal or our preference,” he said. “We know we need to improve our results, and we are keenly focused as we work to achieve that.”
Although AMR typically does not comment on its stock prices, Backover noted “there is no company-driven news that has caused the volatility in AMR shares today.”
American is seen as the financially weakest large U.S. carrier, and its stock closed down 33 percent at $1.98 on the New York Stock Exchange.
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