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July 18, 2013

AMR posts $220 million profit in the second quarter

AMR Corp. reported a $220 million profit in the second quarter, the first time since 2007 the parent company of American Airlines has made money in the quarter.

The Fort Worth-based carrier's profit was an improvement over the $241 million loss posted in the second quarter of 2012 even though revenues remained the same at $6.45 billion.

"The momentum is building as we plan for the impending merger with US Airways," said AMR chief executive Tom Horton in a statement. "I want to thank the American team, 73,000 strong around the world, whose hard work and dedication made this possible. Thanks to them, the new American is taking flight."

Excluding reorganization and one-time accounting items, AMR had a profit of $357 million. The carrier had $124 million in reorganization items for professional fees and claim amounts for special facility revenue bonds.

AMR said it expects capacity in the third quarter to increase 2.7 percent compared to the same quarter last year as it has added routes to South Korea, Mexico and South America.

Fuel costs also dropped for AMR with the carrier paying $70 million less for fuel in the quarter. AMR paid $3.02 per gallon of jet fuel compared to $3.24 per gallon in the same quarter last year.

The company ended the quarter with $7.1 billion in cash including a restricted cash balance of $863 million. It has increased its cash balance by $1.3 billion since the second quarter of 2012.

AMR plans to merge with US Airways later this year, pending government approval of the deal. Creditors are currently voting on AMR's reorganization plan which includes the merger. A bankruptcy court hearing is set for August 15 to consider confirming the carrier's plan to exit bankruptcy.

-Andrea Ahles

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Comments

Kate

Great news! AA is certainly getting back on track in a big way. Hope the momentum continues.

CeoCrookWannaBe

What a moron

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