According to an article in the Dallas Morning News, Fort Worth based AMR Corp., parent company of American Airlines Inc., lost $375 million (15 percent of its revenue) in the first quarter of 2009.
The article said:
"While lower fuel prices have provided a significant buffer against falling demand in 2009, the struggling economy and capital markets remain significant challenges for American and the rest of the industry," AMR chairman and chief executive officer Gerard Arpey said. "Even as we feel the impact of declining revenues, fares and traffic, we continue to make progress in areas within our control," he said.
Areas within American Airlines' control such as implementing job losses ? This CEO's comments may be a foreshadowing of things to come for Americans fearing job losses. Many airlines, automakers and those in the housing industry are facing sharp declines in revenue.
They may not be able to control the spending habits of consumers; but they can control how much money they expend on costs such as labor. As the American consumer cuts back, saves more and spends less, many companies, especially hard hit industries such as the airlines, automakers and housing industry will implement more job losses to stop the financial bleeding.
All American workers must prepare for inevitable job losses that are coming down the line. Job losses are one of the leading causes of foreclosure and other financial catastrophes. To prepare for a possible job loss, the American worker must take an honest look at his/her debts and the probability of them being repaid within in a reasonable time with or without a job loss.
If you assess your debts and find that you are unable to repay those debts within a reasonable amount of time, you want to consider bankruptcy. A bankruptcy attorney can work with you to determine if bankruptcy is an appropriate step for you financial situation.