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October 17, 2013

AMR posts $289 million third quarter profit

159AMR reported a $289 million third quarter profit on Thursday morning as the Fort Worth-based company posted its highest quarterly revenue ever.

The parent company of American Airlines said its revenue rose 6.2 percent to $6.8 billion. Its quarterly profit was a significant improvement from the $238 million loss it reported in the third quarter of 2012.

"Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways," said AMR chief executive Tom Horton in a statement.

AMR's planned merger with US Airways is currently on hold as the two airlines fight an antitrust suit filed by the U.S. Department of Justice to stop the deal. The trial is scheduled for November 25 in federal court.

The carrier also set aside $59 million in the third quarter in expectation of making its first profit-sharing payout to employees since 2001, Horton said. The profit-sharing program was part of the union contracts negotiated during bankruptcy.

Unit revenues, a key industry metric, grew 3.4 percent in the quarter. Jet fuel costs increased slightly, up 1.8 percent to $2.2 billion.

Excluding one-time accounting items and restructuring charges, the carrier said its net profit was $530 million.

AMR ended the quarter with a cash balance of $6.8 billion not including a restricted cash balance of $935 million, a $2.5 billion improvement since the third quarter of 2012.

The carrier estimates that its consolidated capacity will increase 3.5 percent in the fourth quarter, partly due to new international flights it has added to South Korea, Mexico and Central and South America.

-Andrea Ahles

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Comments

life realist

Looks like AA is doing fine without the merger...
over 7 Billion in cash, $289 million quarterly profit.

whitey

OF COURSE THEY ARE MAKING MONEY.THEY DON,T HAVE TO PAY THEIR BILLS!ANY ONE CAN FIGURE THAT OUT.I WOULD HAVE ALOUT OF MONEY IN THE BANK IF I DIDN,T HAVE TO PAY MY BILLS EITHER.

CeoCrookWannaBe

That's right Whitey and also don't forget that the unions sold out the members and that helps alot too. Now they are going to more than double health care premiums yearly.

Bill Shea

Mergers have not always worked out for the benefit of the passengers.For
example: higher fares, less options, etc. And particularly the loss of all service to smaller air carrier airports. Loss of service equals loss of jobs and if you add up all those cities losing all or partial service in the case of some mid-size airports you have a negative economic impact on the U.S.


Bill Shea
Wioodland, CA

Juan

Boo liar liar AA Amr Twu all in the family.Pulling
together wining together

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