Join The Discussion

 

Clip art: Cutting edge barbershop creates a buzz in Fort Worth

Jonathan Morris is on a mission to create a better grooming experience for men.

read more >

Grocers, retailers flocking to Southlake

With its economic development engine revving at full throttle, Southlake is about to welcome several major retail and commercial projects that underscore its image

read more >

Great Woman of Texas; Stacie McDavid

“I’ve always been a maverick in a number of ways,” says businesswoman and philanthropist Stacie McDavid.

read more >

Thousands rally across US after Ferguson decision

Thousands of people rallied late Monday in U.S. cities including Los Angeles and New York to passionately but peacefully protest a grand jury's decision not to indict a white police officer who killed a black 18-year-old in Ferguson, Mo.

read more >

College debt by state in one easy map

WASHINGTON — It may house some of the most esteemed colleges in the country, but if you want to graduate without backbreaking debt, steer clear of schools along

read more >

American reports improved 1Q earnings

AMR's Tom Horton and United's Doug Parker announced a merger in February. Photo by Associated Press

DAVID KOENIG,AP Airlines Writer

 

 


DALLAS (AP) — American Airlines parent AMR Corp. reported a smaller loss for the first quarter than a year ago on slightly higher revenue and much lower labor costs.

AMR said Thursday that it lost $341 million, compared with a loss of $1.66 billion a year earlier.

The nation's third-largest airline said that it would've earned $8 million excluding costs of its bankruptcy restructuring. The first quarter is the weakest of the year for airlines, and this marked AMR's first adjusted profit in the period since 2007.

"A modest first quarter profit shows that we are off and running for the year," CEO Tom Horton said in an interview.

Revenue rose 1 percent to $6.1 billion. Labor costs declined 17 percent as American cut jobs. Horton said the company's bankruptcy restructuring made its costs competitive with other airlines.

AMR is in the process of merging with US Airways and emerging from bankruptcy protection. If antitrust regulators approve the merger, the combined airline will be the biggest in the world.

Once that deal is done, mergers will have reduced eight big U.S. airline companies to four. At the same time, airlines have limited the supply of seats, which helps boost prices. American enjoyed it highest average fare per mile ever in the January-March period.

American's on-time performance improved in the first quarter. But it suffered a setback this week with a computer-systems breakdown that caused massive delays and cancellations Tuesday and Wednesday. Horton took to YouTube to apologize to customers, and blamed the outage on a "software issue." He declined to be much more specific Thursday.

"We do understand the cause of the failure," Horton said. "We're continuing to investigate and do further testing, but we have a high degree of confidence that situation won't recur."


 

< back

Email   email
hide
Midterms
What was the message of the midterm elections?