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American Airlines Reports $110 Million Third Quarter Net Profit
October 18, 2012

AMR Corporation, parent of American Airlines, Inc., which is operating under Chapter 11 bankruptcy protection, reported a third quarter net profit of $110 million, excluding reorganization items and special charges, a $272 million improvement compared to the prior year period.

In the third quarter of 2012, AMR incurred a net loss of $238 million compared to a net loss of $162 million in the same period of 2011.

"These results were driven by the best unit revenue growth in the industry in each month of the quarter, and by record load factor, as we continue to make progress in our restructuring for a successful future,” said Tom Horton, AMR's chairman and CEO.

AMR reported record third quarter consolidated revenue of $6.4 billion, up 0.8 percent compared to the prior year period, on 2.3 percent less capacity than in the third quarter of 2011.

Consolidated passenger revenue per available seat mile (unit revenue) grew 4.3 percent compared to the third quarter of 2011, and mainline passenger unit revenue increased 4.5 percent.

"Strong yield and record load factors generated unit revenue growth that topped the industry in each of the three months, continuing a trend of outperforming the industry that we've seen throughout the year," said Virasb Vahidi, AMR's Chief Commercial Officer.

"We saw unit revenue increases across all five of our hubs and across all international entities."

The third quarter 2012 results include $348 million in special charges and reorganization items. Of that amount, $211 million is related to special charges, primarily associated with employee severance-related costs.

The company recognized $137 million in reorganization items resulting from certain of its direct and indirect U.S. subsidiaries' voluntary petitions for reorganization under Chapter 11 on Nov. 29, 2011.

Taking into account the impact of fuel hedging, AMR paid approximately $3.12 per gallon for jet fuel in the third quarter of 2012 versus approximately $3.15 per gallon in the third quarter of 2011, a 1.0 percent decrease.

As a result, the company paid $22 million less for fuel in the third quarter of 2012 than it would have paid at prevailing prices from the prior-year period.

Source :- http://www.travelpulse.com/