American Airlines bleeds US$238 million
October 19, 2012, 12:10 am TWN
NEW YORK -- American Airlines turned in a US$238 million third-quarter loss Wednesday but blamed the shortfall on large costs related to its ongoing bankruptcy reorganization.
Before including costs for the bankruptcy process and employee severance, American's parent AMR Corp. said it scored a US$110 million operating profit, reversing a loss on the same basis from a year earlier.
Operating income rose to US$51 million from US$39 million a year earlier, as fuel and interest costs fell while salary and benefit costs held stable.
The company's passenger revenue per seat mile domestically and internationally rose 4.7 percent on its American Airlines and American Eagle carriers, and passenger yield rose 3.5 percent, as it cut back on less profitable flights.
Domestic load factor was virtually flat but the income yield rose 4 percent.
"These results were driven by the best unit revenue growth in the industry in each month of the quarter, and by record load factor, as we continue to make progress in our restructuring for a successful future," said AMR Chief Executive Tom Horton.