The fall in American Airlines’ (AMR) stock price resulting from the market’s reaction to an attempt by a passenger to ignite explosive on another airline on Christmas day was greater than the dip in the share price following the hull-loss crash in Jamaica last week Tuesday.

The stock traded on the New York Stock Exchange at a high of US$8.26 last week Tuesday at 1:20 pm then dipped 4.8 per cent to US$7.86 on the following day when news of the non-fatal crash surfaced. It quickly bounced back to US$8.21 that same day and stabilised until the failed explosion on Christmas Day, when it dipped some six per cent and traded US$7.69 up to press time.

American Airlines flight 331 overran the Norman Manley Airport runway after 10:00 pm on Tuesday December 22, smashed through the perimeter fence, crossed the Port Royal road and ended up on the beach, a few metres from the Caribbean Sea.

There were no fatalities, however, 92 of the aircraft’s 146 passengers were reported injured and were treated at hospitals in Kingston. Six persons formed the crew.

AMR’s dip is significant as it represents more than the yield on the 10-year Treasury note at 3.85 per cent.

AMR was not alone other listed airlines saw their prices dip from Christmas Eve to yesterday (up to print) including Delta US$11.77 to US$11.25; Continental US$18.50 to US$17.56, Alaska Air Group from US$36.07 to US$35.01; SkyWest Inc US$18.02 to US$17.28; Republic Airways Holdings US$7.28 to US$6.90; JetBlue Airways Corp US$5.64 to US$5.50; and Southwest Airlines US$11.55 to US$11.44.

Airports worldwide have increased security and personal searches following a failed terrorist attack on Northwest Airlines, while advisories out of Norman Manley International Airport (NMIA) notified passengers to arrive at least three hours before their scheduled flight time, given the recent implementation of increased security screening for all international flights into the United States.

The failed terrorist claimed to be acting on orders from al-Qaeda and set-off an explosive device on a Christmas day flight which landed in Detroit US.

AMR Corporation primarily activities include aviation and owns American Airlines. At December 31, 2008, American provided scheduled jet service to approximately 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines: American Eagle Airlines, Inc. and Executive Airlines, Inc. (Executive) (collectively, the American Eagle carriers).

American also contracts with two independently owned regional airlines, which do business as the American Connection (the American Connection carriers). As of December 31, 2008, AMR Eagle operated over 1,400 daily departures, offering scheduled passenger service to over 150 destinations in North America, Mexico and the Caribbean. On September 12, 2008, American completed the sale of American Beacon Advisors, its wholly owned asset-management subsidiary.