Wall St trashes AA stock because it raised workers' salaries to market levels

Read the actual CNBC article, not the Vox summary.[1] Read what JP Morgan's analyst, James Baker, wrote. It's worse than the summary.

"We are troubled by AAL's wealth transfer of nearly $1 billion to its labor groups. In addition to raising fixed costs, American's agreement with its labor stakeholders establishes a worrying precedent, in our view, both for American and the industry. In our minds, this is a seminal event, and represents the first, credible potential blow to our long-held 'it's different this time' investment thesis."

The analyst cited how the new agreement raised flight attendant and pilot pay by 5 percent and 8 percent, respectively.

"Unfortunately the American move today has emboldened unions probably across the entire space. It's led them to believe you can come back mid-contract [and] ask for whatever you want. And that in turn makes that march toward higher multiples, not impossible, but a little bit more challenging."

[1] http://www.cnbc.com/2017/04/27/airline-shares-decline-amid-w...

American Airlines raises the wages of its employees to the market rate. As a result, investors pull money out of the entire airline industry in anticipation of rising wages everywhere.

Who says Wall Street can't take the long view?

>AAL's wealth transfer of nearly $1 billion to its labor groups

That right there is pretty much the coldest way to say "American Airlines raising salaries by a total of $1 billion"

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ROI went down. End of story, unless you're a social justice warrior, in which case, shriek as loud as possible.