Jim Cramer Says American Airlines Needs to Pay Back the Government
American Airlines expects to cut its summer 2021 international capacity by 25% versus 2019 as the coronavirus sharply hurt demand for flights.
The carrier said it would also discontinue several popular leisure destination routes on which it expects decreased demand.
“American has spent the past few years right-sizing its international network, discontinuing underperforming routes while adding leisure destinations like Dubrovnik and Prague,” said Brian Znotins, American’s vice president of network planning.
In a separate message the company also said it told its flight crew that it has as many as 8,000 more attendants than it needs and that it would offer more leave programs and a voluntary separation package to minimize the need for furloughs.
And, earlier Thursday, Jim Cramer tweeted, "Memo to American Airlines: your stock is up because of endless buying by young investors. You should sell more than the 74 million shares you have sold."
He also said, "American is in huge trouble, take that sucker to $14."
The stock is trading around $12 a share in intraday trading.