AMR Shares Plunge on Dispute With Pilots

[Stocks-to-Watch]

AMR (AMR), the parent of American Airlines, saw its shares fall 11% to $1.92 in afternoon trading on Tuesday after its talks with a union representing pilots stalled. AMR made a new pay proposal late on Monday that was well below the proposal made by the pilots last week, according to the Fort-Worth Star-Telegram.

AMR, the one major airline that did not need to restructure in the past decade, is now facing pressure because of its debt load and its recent earnings results. A deal with the pilots is necessary to help AMR avoid bankruptcy, some analysts have argued.



Original Article Source by Barrons.com