Last week’s AMR earnings call had analysts divided on the prospects for an American Airlines bankruptcy, despite a management statement that it had no intention of going down that route. Even so, this headline in the wake of the call was typical: “American appears headed for a crash landing”.

The problem? Its emphasis on achieving competitive labour costs prompted more than one analyst to read between the lines, suggesting if labour doesn’t change its stance and give way on wages and work rule issues that put American at a USD800 million competitive disadvantage, the company will have no choice but to file. But others point to help needed from creditors and a need for more cash.