« US Airways pilots to begin voting on MOU on Friday | Main | CEO Horton says AMR is "setting the stage for our emergence as a new American Airlines" »

January 16, 2013

AMR posts $262 million profit for the fourth quarter but $1.87 billion loss for all of 2012

AMR Corp. posted a $262 million profit in the fourth quarter partly boosted by a settlement in a lawsuit.

The Fort Worth-based carrier said revenues were down slightly in the quarter to $5.93 billion.

Hurricane Sandy, an early November snowstorm on the East Coast and poor bookings due to operational disruptions earlier in the fall impacted the company's revenues by $155 million, the parent company of American Airlines reported. Of that total, $90 million was attributed to the operational problems in late September, early October, were thousands of flights were delayed or canceled partly due to pilots filing more last-minute maintenance requests although the union denies there was a work slowdown.

Excluding one-time items and reorganization costs, AMR would have posted a loss of $88 million. The accounting items totaled a net benefit of $350 million to the company and included a $280 million benefit from the "settlement of a commercial dispute" and $441 million in charges related to restructuring debt, aircraft leases and paying professional fees while the company is in bankruptcy. The carrier also recognized $58 million in charges related to employee buyouts and retirements in the quarter.

For the full year, AMR posted a loss of $1.87 billion, an improvement over its $1.98 billion loss in 2011. The carrier also reported revenues of $24.85 billion, the highest in AMR's history.

"We have made enormous progress towards building the new American," said AMR chief executive Tom Horton in a statement on Wednesday morning. "It is remarkable what the American team has been able to accomplish, including generating record revenue and a return to an operating profit for the year while restructuring every aspect of our company."

The annual results also include $1.7 billion in reorganization items as it renegotiated financing terms on more than 400 aircraft and renegotiated contracts with over 9,000 vendors and suppliers. AMR filed for bankruptcy protection in November 2011.

AMR ended the year with about the same amount of cash on hand as it did in 2011. The company reported it had $4.7 billion in cash and short-term investments including a restricted cash balance of $850 million by the end of the fourth quarter.

-Andrea Ahles

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef017ee77e70ed970d

Listed below are links to weblogs that reference AMR posts $262 million profit for the fourth quarter but $1.87 billion loss for all of 2012:

Comments

casual observer

Pretty impressive all things considered. AMR's bankruptcy and quick turnaround is certainly a pleasant change from the double dip US bankruptcy or United's bankruptcy protection marathon.

Joe Kilfeather

Pretty Impressie all the employees being laid off and thier Jobs outsourced!!

Raf

WOW,VERY IMPRESSIVE LOSS! If a standalone American Airlines followed up with that same sizable loss for 2013 the company will wind up being liquidated in no time. With the bankruptcy protections (not having to pay their bills) that AMR enjoyed during it reorganization they weren't able to make a profit of have a drastically smaller loss; Can you imagine the losses the company would have when they do have to start paying their bills like everyone else.OMG!

whitey

no wonder they are starting to make money. they are not paying their bills and still screwing their employees! but when they do come out of bk, they will continue the same path again.this airline will never survive even if someone would give them 3 trillion to bail them out. the reason is to many stupid colledge punks and greedy execs running this once proud company. the same goes for the board of in directors. starting with the biggest piece of crap who is roger staucrook. I hope he loses everything and hope he and his family lives under a bridge.he deserves that along with the rest of those crooks at hdq!

RL

Wow! American Airlines is doing exceptionally well, only a 1.87 BILLION dollar loss for 2012 - now that is impressive.

Way to go!

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.