AMR posts $436m 1Q loss
American Airlines’ parent company, AMR Corporation, has reported a 1Q net loss of $436m, a $69m improvement on 1Q 2010.
Excluding one-off non-cash charges for sale/leaseback transactions, losses amounted to $405m ($1.21 per share). The company claimed improved year-over-year results and, according to AMR Chairman and CEO Gerard Arpey, “some meaningful progress”. Passenger yield at American increased by 6.2 per cent and consolidated revenue at AMR was $5.5bn (+9.2 per cent). The company says that an improved fare environment, a recovering economy and robust business travel helped to offset the effects of higher fuel prices, severe weather, a fuel farm fire at Miami International Airport and Japan’s tsunami. AMR ends 1Q with total debt of $17.4bn (+$1.5bn) and net debt of $11.6bn (+$0.2bn). Arpey says the company is taking steps to “aggressively” increase revenues, reduce capacity, control non-fuel operating costs and bolster liquidity.
