AMR Same Old Same Old

AMR Corporation (AMR) the parent of American Airlines reported Q4 losses which were almost the same size as last year. From some strange perverse reason investors bid the stock up. Management reported on seat miles and other traditional metrics. They claim to have some fuel hedges in place but cannot explain what the costs would be if fuel costs fluctuate radically. This is the single most volatile cost component that can turn on a dime. I have said this about other airlines in the past. They continue to expand horizontally buying up each other and competing for routes. The biggest business challenge they have is cost control and they have done nothing substantial to protect themselves. They just assume that they can pass the costs onto the consumer and go from there. New equipment may be more cost effective but not totally cost effective. Same old tired thinking from the board and senior officers.