JPMorgan analyst Jamie Baker downgraded American Airlines (AAL) to Neutral saying he's troubled by the company's $1B wealth transfer to labor groups. American disclosed yesterday that it chose to harmonize its flight attendant and pilot wage rates with those of Delta (DAL) and United (UAL), driving increases of roughly 5% and 8%, respectively, over the remainder of current contracts, Baker tells investors in a research note. This will drive an estimated $230M in increased 2017 labor expense, followed by increases of $350M in both 2018 and 2019, the analyst adds. The agreement "establishes a worrying precedent" both for American and the industry, Baker tells investors. The analyst cut his price target for American shares to $52 from $59. The stock closed yesterday down 21c to $46.40.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here