This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
American(AAMRQ.PK) likely closed out its run in bankruptcy court with one of the best second quarters in its history.
The carrier, which expects to complete a merger with
US Airways(LCC) in the current quarter, said its net profit, excluding items, in the second quarter was $357 million, representing a $262 million improvement over the same period a year earlier. Consolidated revenue was flat at $6.5 billion.
Including items, the profit was $220 million, compared with a loss of $241 million in the same period a year earlier.
American, which has been operating under bankruptcy court protection since November 2011, became the first airline to report second-quarter earnings. Most carriers will report next week.
During the quarter, consolidated and mainline capacity rose approximately 1.1%, compared with the same period a year earlier, while passenger revenue per available seat mile declined by 0.9%. The carrier said close-in demand began to decline in March, but PRASM subsequently increased during the quarter.
On the cost side, cost per available seat mile excluding fuel and special items decreased by 5.8%, driven by restructuring efforts. The company ended the quarter with $7.1 billion in cash and short-term investments.
Looking ahead, American estimates consolidated capacity will gain 2.7% in the current quarter, driven by longer stage length and by new international capacity.
Follow @tedreednc-- Written by Ted Reed in Charlotte, N.C.
>To contact the writer of this article, click here: