American Airlines Shares Hit 2-Year Low on Investor Update
Shares of American Airlines are sinking to their lowest level in more than two years as the carrier warns about rising fuel prices and lost revenue from Hurricane Florence.
The shares fell $1.90, or 5.3 percent, to $34 in Tuesday afternoon trading.
American says it canceled 2,100 flights during Florence, costing it $55 million in revenue and $50 million in pretax income.
Aside from the storm, American says revenue for every seat flown one mile rose between 2 percent and 3 percent in the third quarter, a sign that fares and fees are rising.
But American also says it paid $2.28 to $2.33 a gallon for fuel in the quarter, six cents more than it expected in July. Fuel prices have jumped more than one-third in the past year.
One of Oldest US Coal Companies Files for Bankruptcy
One of the oldest coal companies in the U.S. has filed for bankruptcy to deal with steep debt amid declining world demand.
Englewood, Colorado-based Westmoreland Coal Co. filed for Chapter 11 bankruptcy protection Tuesday in U.S. Bankruptcy Court in Houston.
Company officials say in a statement the filing is part of a restructuring agreement with an unnamed group of lenders.
Company officials say operations won’t be interrupted and there are no expected staff reductions.
Court filings show the company has $770 million in assets and $1.4 billion in debt.
Westmoreland was incorporated in 1854 in Pennsylvania. It has coal mines in Montana, Wyoming, New Mexico, Ohio, North Dakota and Texas, and a coal-fired power plant in North Carolina.
Its mines in Canada are not part of the bankruptcy filing.
Google Expands Pixel Phone Screens, Undercuts Apple on Price
Google’s new Pixel phones mirror the industry trend moving the devices toward lusher, bigger screens and add new twists on the camera for taking better selfies and other pictures.
The Pixels have barely made a dent in the market since their debut two years ago, but Google is hoping to change that with the latest models unveiled Tuesday at an event in New York.
Google uses the phones to highlight what it considers to be best features of its Android operating system, while challenging Apple and Samsung with a device tailored for affluent consumers.
The third generation of Pixel phones comes in two sizes, and both feature high-definition screens that span from one edge to another. It’s the first time Google has embraced the format, which Apple adopted last year with its ballyhooed iPhone X.
Google is undercutting Apple on the pricing of its phones. It’s also hiring photographer Annie Leibovitz to take pictures with the new Pixel in an effort to persuade consumers its camera is superior to the iPhone XS that Apple released last month.
The Pixel 3 will be available Oct. 18 and sell at prices starting at $799. That’s $200 below the least expensive iPhone XS.
German Industry Urges Breakthrough at Brexit Talks
German’s main industry association says political leaders need to make a major breakthrough at upcoming negotiations on ending Britain’s membership in the European Union.
The Federation of German Industries, known as BDI, cautioned Tuesday that a so-called hard Brexit with Britain leaving the bloc with no trade deal would be a “disaster” for businesses on both sides of the English Channel.
BDI head Joachim Lang says “Europe needs to prevent a worst-case Brexit scenario” and be prepared to compromise at the upcoming talks. At the same time, “the prerequisite is that London finally grasps reality.”
He says that “otherwise Europe is in danger of sliding into a disorderly Brexit. A massive crisis would be the consequence.”
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