Airlines are lousy businesses. Even heralded success like Southwest Airlines (NYSE:LUV) and Ryanair (Nasdaq:RYAAY) have plateaued in recent years, and the airline industry has bedeviled otherwise successful investors like Warren Buffett. Now, with rumors swirling around about financial difficulties at AMR (NYSE:AMR), the financial health of the industry is getting another skeptical look from the market.
The Latest Troubles
AMR, better known as American Airlines, actually has a relatively rare distinction to its credit. This is one of the few airlines that has not gone bankrupt. Still, with the company seemingly left out in the cold in the merger wave, that saw Northwest absorbed into Delta Air Lines (NYSE:DAL) and the merger of United and Continental into United Continental (NYSE:UAL), there have been worries for some time now that the company would struggle to compete.
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