American Airlines posts March loss, sees 2Q profit May 29, 2013
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FORT WORTH, Texas (AP) — American Airlines' parent lost $105 million in April, but the CEO says AMR Corp. is on track for a strong profit in the April-to-June quarter.
AMR narrowed its loss for April from last year's $142 million by cutting labor costs by $106 million, or 18 percent, to $478 million. The company has eliminated several thousand jobs since filing for bankruptcy protection in November 2011.
AMR also spent $26 million less on fuel, or $722 million. The labor and fuel cuts helped AMR reduce operating expenses by 4 percent, to $1.98 billion.
Revenue, however, slipped more than 2 percent, to $1.99 billion.
In a message to employees, CEO Tom Horton said the company — which hopes to complete a merger with US Airways in September — showed strong improvement in its financial results.
"And if current trends continue, we are well on our way to a strongly profitable second quarter," Horton wrote.
The annual summer vacation season falls during the second and third quarters, making those the strongest of the year for airlines. Horton said American's operation was "running well," boosting its one-time arrival rate to more than 78 percent and reducing cancelations to less than 2 percent of flights, the best mark in seven years.
AMR filed the monthly financial reports with a federal bankruptcy court in New York. The Fort Worth company expects to exit from Chapter 11 protection in September after completing the merger with US Airways.