There are a number of airlines all over the world that are having problems. American Airlines just so happens to be one of them. In fact, this famous United States carrier saw its stocks fall the most that it had seen since September of 2001. This big decrease came on concerns that the United States was nearing a return to recession. Not only that, but many people were worried that the company is going to be forced to seek bankruptcy protection.

This latest news means that this is the fifth straight drop for American Airlines. It is the biggest drop in stocks for the company since back in September 17, 2001. Overall, shares for the carrier dropped by $1.05, which is the same as 35 percent. This means that the company’s shares now sit at just $1.99 on the New York Stock Exchange.

This huge decline from American Airlines is the largest of any other US carrier. The airline is heading towards a fourth consecutive annual loss. This has a lot of people worried that the airline will have to file for bankruptcy soon. As long as the economy is bad, people will continue to assume that the airline is not well off.

Ray Neidl, who is an analyst in New York for Maxim Group, said that the odds are better than 50-50 that America is going to hit another recession. If this is the case, people are going to start to see some softness in demand come October. This weakness will carry over into next year.

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This entry was posted on Tuesday, October 4th, 2011 at 8:48 am and is filed under Travel News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.