-T / T / +T | Comment(s)

Thursday, July 18, 2013

American Airlines Reports First Second Quarter Profit Since 2007

AMR Corp., parent company of American Airlines, reported a net profit of $220 million for the second quarter of 2013, its first profitable second quarter in six years. 
During the same period in 2012, AMR reported a loss of $241 million, mostly due to expenses after it filed for bankruptcy protection in 2011. The airline's profitable second quarter this year is attributable to deep reduction in its operating expenses, including spending for wages which was down 18 percent from 2012 and fuel expenses which were $70 million less than the second quarter of 2012. 
The carrier partially attributes its fuel expense improvement to its continued fleet renewal program, and a decrease in the price per gallon of fuel, which dropped 6.8 percent year over year in the second quarter. 
"American delivered its best financial performance for a second quarter, excluding special items, in the company's history," said Tom Horton, AMR's chairman, president and CEO.
American expects to complete its pending merger with US Airways during the third quarter. US Airways shareholders recently approved the merger agreement, and the two carriers are now awaiting regulatory approval. 

Related: Aviation Today's Checklist 

Live chat by BoldChat