AVIATION: Near Miss

The stockholders of American Airlines, Inc., largest U.S. domestic airline, are a patient lot. For the last three years their company has been in the red, has paid dividends only six times in 16 years. Last week the stockholders finally got some good news. In 1949, thanks to higher mail pay, a 42% gain in freight traffic and a 15% rise in passenger traffic, American had netted the biggest profit in its history —$6.5 million (v. a 1948 loss of $2.8 million). That was equal to 79¢ a share.

But there would be no dividend just yet, even though American had doubled its earned surplus to $10.3 million. Under the debenture agreement by which American financed its postwar fleet of planes, the company may not pay dividends until its surplus tops $10.6 million. Nevertheless, the news was cheerful enough to send American's stock up 1⅜points to 11⅝; if, the highest since 1946.