Another problem is that American lacks domestic traffic to feed its international flights at Kennedy, with service to about 50 fewer markets than US Airways (LCC) has at its Philadelphia hub.
On its Chicago-Delhi route, American loses $40 million a year, McAdoo said, noting that "American should not be ashamed if it were to eliminate service to India." The carrier also loses $40 million annually on Chicago-Beijing and $13 million annually on Chicago-Shanghai.
In his report, McAdoo downgraded American to under-perform, with a price target of $7.50.
McAdoo's view, it should be said, is not unanimous.On Monday, two other veteran analysts upgraded American. Standard & Poor's analyst Jim Corridore upgraded to hold from sell with a price target of $7. Corridore wrote that "lower jet fuel costs than we previously anticipated will allow the company to preserve needed cash
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