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Thursday, April 18, 2013

American Airlines Reports Profitable First Quarter

By Woodrow Bellamy III

American Airlines parent company, AMR Corp., on Thursday reported its first profitable first quarter in six years, though the company's $8 million net profit did not include costs associated with bankruptcy restructuring or expenses related to its pending merger with US Airways. 
 
 
AMR reported total revenue of $6.1 billion for the first three months of 2013, the highest first quarter revenue in company history. Reorganization and other special expenses totaled $349 million. AMR Chairman Tom Horton said the company's four consecutive quarterly operating profit is proof that American is on the right track to restoring its brand. 
 
"For the first time in six years, we produced a first quarter profit, excluding reorganization items and special charges, and our fourth consecutive quarterly operating profit," said Horton. "We have raised revenues and built a competitive cost structure and sound foundation for the future. We're investing in hundreds of new aircraft and industry-leading products and have renewed our iconic American brand. Looking forward, our pending merger with our partners at US Airways positions American to be the world's leading airline."
 
American took delivery of 12 new aircraft in the first quarter, becoming the first U.S. airline to launch commercial service on the Boeing 777-300ER in January. Over the past year the airline has taken delivery of a combined 36 new 737-800s and 777-300ERs. 
 

AMR filed its plan of reorganization earlier this week, and is awaiting a bankruptcy court hearing to consider approval of its plan in June. American's anticipated merger with US Airways took another step forward this week as well, with AMR filing its registration statement for the merger with the Securities Exchange Commission (SEC).  

Related: American Airlines Cancels 100s of Flights 

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