American Airlines parent corp. posts Q3 profits of US$289 mil.
By David Koenig, APDALLAS -- After years of losses, American Airlines is making money by boosting revenue and cutting labor costs.
October 18, 2013, 12:05 am TWN
Parent company AMR Corp. said Thursday that it earned US$289 million, or 76 cents per share, in the third quarter. That's a turnaround from a loss of US$238 million, or 71 cents per share, a year earlier.
Adjusted profit was a record US$530 million. That figure doesn't include bankruptcy-reorganization costs and other special items.
Revenue rose 6 percent, as passengers paid more per mile to fly on the nation's third-biggest airline. Labor costs fell 13 percent from a year ago, as the company cut jobs during its bankruptcy makeover.
Chairman and CEO Tom Horton said the airline's improved performance “creates strong momentum towards our planned merger with US Airways.”
The airlines had expected to close the merger this summer but were delayed when the U.S. Justice Department and several states filed an antitrust lawsuit to block the deal. A trial on the lawsuit is scheduled to start Nov. 25, and Horton repeated this week that the companies remain open to negotiating a settlement that would allow them to combine.