It was another quarter in the red for American Airlines' parent company, AMR Corp.
The Fort Worth-based carrier posted a $97 million loss in the fourth quarter, compared to a $344 million loss in the same quarter in 2009. Revenues grew 10 percent to $5.58 billion in the quarter.
The fourth-quarter loss was less than Wall Street analysts had predicted. Excluding a one-time charge of $28 million to write-down routes in Colombia, the company lost $69 million or 21 cents a share. Analysts had estimated a 33 cents a share loss for AMR this quarter.
For its fiscal year 2010, AMR had a loss of $471 million, a significant improvement over its $1.47 billion loss in fiscal year 2009.
AMR said it expects its capacity at American and its regional carrier, American Eagle, to increase by 4.3 percent in 2011. The domestic mainline network will be up 1.0 percent while international routes will grow by 7.7 percent as American adds several new international flights including service from Los Angeles to Shanghai and New York's JFK airport to Tokyo-Haneda.
The carrier also announced on Wednesday that it will acquire two Boeing 777-300ERs and the aircraft are expected to be delivered in late 2012.
"In 2011, American will continue to enhance its own network and expand its relationship with quality carriers in the markets that are important to our customers," AMR chief executive Gerard Arpey said in a news release. "American is well positioned to capitalize on the opportunities unfolding in the marketplace. While the road forward is not without challenges, as we begin 2011, we are enthusiastic about the possibilities we see ahead.”
Fuel continues to be a concern as AMR said it plans to pay an average of $2.62 per gallon in the first quarter of 2011 and $2.67 per gallon for 2011. The average system price of jet fuel was $2.32 per gallon in 2010.
The company will hold a conference call with analysts at 1 p.m. CDT. to discuss more details of its earnings report.
Oh boy! here come some more fees!
Posted by: Mike in Fort Worth | January 19, 2011 at 11:31 AM
HOW MUCH MORE BULLCRAP WILL ARPEY BE FEEDING THE SHAREHOLDERS AND INVESTORS. I PROMISE I PROMISE I PROMISE. EVERY YEAR IT,S THE SAME OLD STORY FOR THIS BLACKSHEEP AIRLINE OF AMERICA . AMERICAN,T AIRLINES. MAYBE THIS MORON AND THE REST OF HIS CLOWNS INCLUDING THE BOARD OF INDIRECTORS SHOULD PROMISE THE SHAREHOLDERS AND INVESTORS THEY WILL GET OUT OF THE INDUSTRY ALL TOGETHER. I,VE ALEAYS BEEN RIGHT. AA WILL NEVER TURN A PROFITABLE YEAR UNTIL THE MAFIA HAS LEFT!!!!!!!!!
Posted by: CAT | January 19, 2011 at 12:57 PM
CAT, good buddy. Do you really think Arpey and his management team want to be in the red? C'mon, They have the highest labor costs in the industry, chose not to go Chapter 11, which they would have been able to jettison millions in what now are legacy costs. Fuel is getting expensive again. I could go on and on as to why the deck is stacked against them. Think, man!
Posted by: wpii | January 19, 2011 at 02:36 PM
I don't understand, what about the bag fee's, fuel hedging, and contract maintenance, shouldn't that offset something? I guess we will never know, since AA only opens it's books with their accountants and not their employees who saved them from bankruptcy.
Posted by: Steven DeSanto | January 19, 2011 at 03:07 PM
WAA WAA WAA WAA WAA. What a crybaby!
Mr wpii, do you need your diaper changed?
All the excuses you use for the continued mismanagement of AMR are the same factors faced by the rest of the industry, and they all seem to be able to make a profit. I don't understand why the shareholders don't fire the Board of Directors and the Senior Management. Failure is failure and we've seen this group produce failure after failure for too many years. Fire them all.
Posted by: TiredOfPanderingANDREA | January 19, 2011 at 03:19 PM
i was waiting for the pandering idiot to join his alter ego cat. where's frankie?
of course the morons in the twu will claim that there are two or three or 100 sets of books. "the ones they show us and the ones they show everyone else".
if any of you had any proof that there were different sets, crandall would've been in jail in the 80s.
tired, sad, argument, for a bunch of bitter, morons.
failure is failure, that is correct, however since the COMPANY paid more for fuel, almost a million, and improved cost/profit by another, shouldn't that be good news?
pander, you're too bitter to see anything. cat, you're too stoopid.
Posted by: pandercat, the moron twins | January 19, 2011 at 04:05 PM
Only way to kill a monster is to remove its head. Board of Directors, Mr. Arpey and his VP buttboys gobbling up bonus after bonus.
Since when is it American when a business continues to pay out so many bonuses to people who are basically failures? The vp only incentive is to be a bobble head, always covering the back side of anyone above them. Corporate addiction is killing this airline.
Posted by: YogiandBooBoo | January 19, 2011 at 05:36 PM
AA needs NEW top management!!! A complete make-over, it needs aggressive growth thirsty management. Only (2) B773's???? So strange, "subfleets" are so not AA! Hope there's more B777-300s to come; AA has markets than can support the bigger B773. The 757s also need a major interior upgrade!!!
Posted by: H. Davila | January 19, 2011 at 07:59 PM
To: wpii,
I work at American Airlines and my wages and benefits are less then most other airlines and my health benefits have skyrocket this year with no raise in years. I am also represented by the TWU you should really get your fact straight.
Posted by: migillagorilla | January 19, 2011 at 08:57 PM
The end draws near for this once great airline. Even lowly US Airways made a few hundred million in PROFIT for the same quarter. Unless AMR can find a white knight or good merger partner, it's time will run out as soon as its creditors, customers, employees and the airframes on its ancient fleet of MD80s can no longer stand the abuse. There is little left here- & clearly nothing to invest in.
Posted by: Ron Sampson | January 20, 2011 at 07:30 AM
Wow... panderboy. It must be hard for you to keep track of all these different e-mail addresses and passwords from which you post these quality posts here.
Have you ever thought about how easy it is to see the commonality in tone and language between all these different personas you post under?
I know I shouldn't give you that much credit. We all know that the two neurons you have don't work well together. Hope you have your log-in information written down somewhere...
Posted by: MNJ | January 20, 2011 at 07:48 AM
How do you figure wages and benefits are less at AA than other airlines? I'm sorry but I've seen the pay charts in the Wall Street Journal and you folks are near the top.
Can you imagine how much AA would have lost if it had given in to the unions demands for billions in raises? Clearly now is not the time.
Posted by: airlinerealist | January 20, 2011 at 10:34 AM
As a 28 year employee of AA, all I can say is I'M EMBARRASSED!!
Posted by: AACLERK | January 20, 2011 at 11:13 AM
You guys are failing to see the big picture. I would not be surprised if other legacy carriers posted a loss if they had not shed debt and other obligations and dumped employee pensions and slashed wages a few years ago.
If the airlines were playing on a level plaing field, you would see less discrepancy in the numbers. The fact is, they aren't and that makes AA look bad. But, AA is climbing out of a hole honestly and responsibly where the others took a cowardly way out. Fuel is going to be an issue, but I think that AA's management team is truly doing a decent job of getting the airline's finances in line. Just be patient!
Posted by: David Barnes | January 20, 2011 at 01:04 PM
I couldn't agree more with the above comment. AA is at the very least playing it safe. I think the resistence to merge is going to work out for the company in the long run. Bigger is not always better as AA found out. Arpey and crew has done a good job shoring up alliances, getting immunity, and returning the focus to the cash cow cities. The rest will fall into place in good time. The airline seems much more streamlined now than even a few years ago, which will make it much easier for AA to absorb bumps in the road in the year to come.
Posted by: Kate | January 20, 2011 at 02:13 PM
So you employees want new management at AA? People with no history or stake in the company? Here's what you'd get: a Chapter 11 filing. You'd be trading AA's offers of raises and bonuses in a new contract for a contract with more concessions.
But union employees doing things against their own interest is nothing new, so be my guest.
Posted by: Richard | January 20, 2011 at 02:35 PM
Richard, great point. I love it when the people who call for new management, but never seem to offer any real solutions. Maybe once in a while we hear someone beg for Bob Crandall to come back. Different ball game now. You're absolutely right too: a new team would file for bankruptcy as soon as they legally could.
Posted by: wpii | January 20, 2011 at 02:49 PM
To airlinerealist
I have seen the contracts and pay scales at the other major airlines and some cargo and troop haulers.
All I can speak for is our department and we rank #7 from the top of the airlines. If you included the troop and cargo haulers were even further down the list.
Posted by: migillagorilla | January 20, 2011 at 08:16 PM
But migillagorilla, you still have your pensions. As some folks know quite well, that is worth gold in the long run.
Posted by: David Barnes | January 21, 2011 at 11:52 AM
Let's not let the facts get in the way here.
http://web.mit.edu/airlinedata/www/2009%2012%20Month%20Documents/Employees%20and%20Compensation/Total/Average%20Annual%20Wages%20and%20Salaries%20-%20All%20Employees.htm
AA employees are the third highest paid and the highest among legacies. It's even worse if you bring bennies into the equation.
Posted by: MNJ | January 21, 2011 at 12:53 PM
How is it worse when you bring benefits into the equation? The legacies that declared bankruptcy walked away from huge pension and medical obligations and left taxpayers on the hook. AA employees still have the employer-sponsored retirements intact.
Your little pay chart also obscures the fact that work rules differ among airlines and work groups. Flight attendants at Southwest make a little more than at AA on average, for instance. But they work almost twice as many hours for that salary.
Nice try hiding behind raw data. Care to play again?
Posted by: airlinerealist | January 21, 2011 at 05:01 PM
Well Mr Barnes my pension is not worth that much gold and MNJ your figures are wrong.(total average of everyone including your VPs?)I have old coworkers and friends at Southwest Delta Jetblue Continental and several charter and cargo haulers (FedEx UPS)they all make more than us in pay and or benefits. Some have matching 401ks others pension plans or both. some make a dollars less an hour but pay a 100.00 to 130.00 dollars less a month in health benefits. At the rate there going they will be much better of at 65 than us. We all meet every year for a big get together and the pay contracts talks always comes up. This was also mention by are mediator its not like we were asking for the sun and the moon.
Posted by: migillagorilla | January 21, 2011 at 11:57 PM
HEY KATE. YES BEING THE BIGGEST DOESN,T MEAN BEING THE BEST. HOWEVER AMERICAN CAN,T EVEN DO THAT AS THE NUMBER 3 AIRLINE IN THE WORLD. I WORKED FOR A GREAT AIRLINE IN THE PAST WHO,S CEO SAID , WE NEVER WANTED TO BE THE BIGGEST BUT JUST THE FINEST. AA IS FAR FROM THAT. THE SECRET IS RESPECT FOR YOUR EMPLOYEES AND IN TURN THAT WILL BE BETTER THAN AA ACTING LIKE CSI TRYING TO FIRE US FOR IDIODIC REASONS. SORRY TO SAY BUT AS LONG AS ARPEY AND HORTON WHO RAN ATT RATINGS SO LOW , THIS AIRLINE WILL BE THE NEXT PAN AM. HOWEVER AA WILL NEVER LIVE UP TO PAN AM,S NAME. SORRY KATE BUT YOU ARE DEAD WRONG.
Posted by: CAT | January 22, 2011 at 12:59 AM