AMR Posts Record Revenue, Adjusted Profit of $95M
The $95 million represented a $381 million improvement over the same period a year earlier. Including reorganization costs and special items, the parent of American Airlines lost $241 million, compared with a net loss of $286 million a year earlier. Revenue rose 5.5% to $6.5 billion.
"This was a time of exceptional improvement," said CEO Tom Horton, in a prepared statement. "Our revenue performance has topped the industry for several months, leading to our first second-quarter profit in five years excluding reorganization and special items.
This improvement reflects only a fraction of our ongoing restructuring progress," Horton said. "While there is still much to be done, we expect this momentum to build quickly as the new American re-emerges as an industry leader."For several months, AMR has reported continuing monthly improvement in its revenue per available seat mile. During the quarter, consolidate passenger revenue per available seat mile grew 9.1%, while mainline PRASM grew 8.7%. Domestic PRASM increased by 8.5%. International PRASM grew by 9%, with an 8.5% gain in the Atlantic and an 18.1% gain in the Pacific. Premium cabin demand rose significantly in both regions. Mainline capacity fell by 2.4%. Consolidated load factor was 84.5% while mainline load factor was 85.1%, a record for any quarter. The carrier said its revenue performance was driven by higher yield combined with higher load factors. "These industry-leading year-over-year revenue increases reflect the strength of our network and alliances, our focus on the customer, and the effectiveness of our overall strategy," said Chief Financial Officer Bella Goren. On the cost side, cost per available seat mile, excluding fuel costs, increased 2.3%. Consolidated operating expenses, excluding special items, totaled $6.2 billion, essentially flat with the same period last year. AMR ended the second quarter with about $5.8 billion in cash and short-term investments, up slightly from $5.6 billion a year earlier and up from $4.8 billiong when it sought bankruptcy protection on Nov. 30, 2011. Wednesday afternoon, US Airways CEO Doug Parker will lay out the case for the merger in an appearance at the National Press Club in Washington, D.C. -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed >To follow the writer on Twitter, go to http://twitter.com/tedreednc.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV