American Airlines’ plan to sell Eagle lifts shares

first_img 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! DALLAS – The parent of American Airlines said Wednesday it plans to sell or spin off its American Eagle regional carrier next year. Its shares rose 6.9 percent. Investors have been pressing AMR Corp. to sell the regional airline and other assets, moves they say could raise money and lift AMR’s stock price. American Airlines is the nation’s biggest airline. The industry has been under pressure from record fuel prices. But AMR has posted six straight profitable quarters as planes were more full and passengers paid higher average fares. Analysts said it was too early to put a price on American Eagle, but that high fuel costs could make it hard to get top dollar. American Eagle operates planes that connect American Airlines hubs such as Dallas-Fort Worth with smaller cities. It has about 300 planes and operates about 1,700 daily flights to more than 150 cities in the United States, Canada, Mexico and the Caribbean. It generates annual revenue of about $2.3 billion. Fort Worth-based AMR said in a statement that it is still studying whether to spin off Eagle to AMR shareholders, sell to a third party or divest the carrier in some other way. Although planned for 2008, the timing of the divestiture could be affected by economic, industry and financial-market conditions, the company said. AMR said divesting Eagle “is in the best interests of AMR and its shareholders.”last_img read more