AMR announced that, while there has been some interest in acquiring its American Eagle operation, it has put the sale, announced last November, on hold pending stabilization in the industry. Related Story The move came as the company reported that expenses for the regional affiliates exceeded revenue by more than $200 million.
In the meantime, the company recently announced that it is taking 37 regional jets and 26 Saab 340s out of service as part of the 10 to 11 percent in capacity reductions at Eagle. AMR also announced the acceleration of eliminating American's 10 A300s. The aircraft being shed are owned by AMR, said the company, which hopes to sell them.
AMR is studying further capacity reductions for next year and anticipates more cuts although it will not be until the end of the third quarter that it will provide guidance.
Revenues for American’s regional affiliates reach $683 million in the second quarter compared to $658 million in the year-ago period, a positive swing of 3.8 percent and despite a three percent drop in capacity. AMR Corporation, the parent company of American Airlines, Inc., reported a net loss of $1.4 billion for the second quarter of 2008.
Regional affiliate expenses rose to $904 million compared to $710 million in the year-ago quarter. AMR posted a loss of $284 million, a $600 million swing from the $317 million posted in Q207, according to Chair and CEO Gerard Arpey, who briefed analysts yesterday, noting that American has participated in 30 fare increases this year and has added fees that will generate $100 million. The company reiterated special items taken during the quarter including $1.1 billion in write downs for the 30 MD-80s and Embraer ERJ 135 aircraft it is currently grounding.