Three successive rounds of taxpayer bailouts and the recovery of the airline industry should be good news for American Airlines, as it is for other U.S. carriers. However American remains in a more precarious financial position than its competitors and has less maneuvering room than other airlines do facing the headwinds that are on the horizon for the industry.
American’s financial statements show liabilities that are greater than their assets and they face four major challenges that could make things worse.