The American airline industry is suffering immediately after the airstrike attacks launched by President Donald Trump. It saw one of Iran’s top military leaders being murdered under allegations that have already been proven false. Trump claimed this man was a terrorist connected to 9/11, which goes against all previous evidence that Afghanistan was the proprietors of the September 11th attacks. Immediately the Iranian Government retaliated to America by drastically increasing the price of fuel, which is the second-largest expenses for any airliner. This will cause delays in future flights and profits to decrease radically.
The result of these increased fuel prices has been all Airliners losing significant percentages on stock valuation with Wall Street. The most notable was American Airlines, which saw their shares drop by 4.8% in less than four hours. United Airways and Delta Airways lost 3% of their stock valuation by the end of January 3rd, with Southwest coming out the lowest at 2.4%. These percentages are expected to drop by another potential 5% when Wall Street opens again on January 6th. This comes during a time where airliners are facing a nation-wide strike for higher wages. Unions and airliners have been negotiating for months, with more than 120 thousand employees ready to walk off the job at any time.
Compensation for American Airlines Coming
This wasn’t the only significant headline for American Airlines this week. It was also announced on January 2nd that the airliner began negotiations with the Boeing Corporation. These negotiations apply to the required compensation needed for the twenty-four Boeing 737 Max Jets. These jets became grounded in March 2019 on a worldwide scale after it was revealed that insignificant software was maintained. It was this software that prompted two airline crashes, with numerous airliners cancelling thousands of flights for safety purposes. It’s estimated that $540 Million will be lost to American Airlines per this grounding.
It’s not known what level of compensation will be provided to American Airlines. Estimates range that it could be upwards of $500 million, which would require the Boeing Corporation to take out significant loans from numerous banks. However, this company was found guilty for knowing about the software problems with the 737 Max Jets. Subsequently, the executives of this corporation committed mass murder by having 500+ lives lost on the two flights. Considering that they aren’t facing any prison sentences, these upcoming fines are minimal in comparison to the punishments that should’ve ensued.