American Airlines parent reports $359 million 3Q loss

[WriteDown]

Source: Dallas Morning News

American Airlines Inc.’s parent, AMR Corp., reported a net loss of $359 million, or $1.26 a share for the third quarter, blaming a drop in revenues and a poor economy.

Excluding special items largely related to the sale and retirement of aircraft, AMR said it lost $265 million or 93 cents a share. The analysts’ consensus was for a 95-cent loss.

“A difficult revenue environment driven by the weakened global economy continues to overwhelm the benefit of significantly lower fuel prices,” AMR chairman and chief executive Gerard Arpey said in the company’s announcement, “but our third quarter accomplishments better position us to address these near-term challenges and be competitive and successful for the long haul.”

AMR said it had $5.13 billion in operating revenues in the third quarter, down 20.2 percent and $1.30 billion from third quarter 2008. That drop in revenue cancelled an almost identical decline in fuel expenses, from $2.72 billion in third quarter 2008 to $1.45 billion in the most recent quarter.

A year earlier, AMR reported a $31 million profit, but that figured was boosted by a $432 million gain from its American Beacon Advisors sale. Excluding that and other special items, AMR lost $374 million, or $1.45 a share, in third quarter 2008. ....



Read more: http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/102209dnbusamrearns.23ae37a08.html

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The only profitable airline that I can think of is Southwest, but they're actually a pleasure to fly with.

[Taverner]

1. Shit, we need to find a cheaper fuel if we want air travel

Something cheap, sustainable, clean and non-region specific

[Soylent Brice]

2. *light bulb*

[lib2DaBone]

3. Plus we need to get rid of the TSA Goons.. No one wants to fly...

..or visit the U.S. and be subjected to the TSA at our Airports... another living legacy of GWB.

[WriteDown]

4. That does not explain why airlines like Southwest continue

to turn a profit.

[pattmarty]

5. Ok asswipe, this WAS NOT the original point of your post.............

..........so tell us unclean stupid liberals here WHY Southwest makes a profit IN YOUR OPINION.

[WriteDown]

6. People from Arkansas must be tense. nt

[Rage for Order]

11. Because they only fly one model of plane

Boeing 737. Therefore, every pilot, flight attendant, and mechanic can fly/work on every plane in the fleet. Training costs are drastically reduced because everything is standardized. Also, they don't need to keep parts for several different models of jets on hand since everything is interchangeable. Finally, they don't offer any frills, but they don't charge ticky-tack fees either, like $25 for each checked bag.

There are other reasons, such as the manner in which they purchase their fuel contracts, but the reasons they are profitable that I mentioned above are some of the most readily identifiable. It's not rocket science, it's good management.

[Angleae]

13. Technically they have two models.

The Classic 737s (737-300 & 737-500) and the NextGen (737-700). Different engines, avionics, hydraulics, flight controls, etc. If there's something interchangable between them, it could probably be put on other planes as well.

[Sen. Walter Sobchak]

12. because Southwest doesn't proactively treat their customers like garbage

I know people who have enough frequent flier miles to get automatically upgraded to business class on all their flights, but they still choose to fly Southwest for the luxury of not being treated like shit by every airline employee they come into contact with,

[spartan61]

7. But AA's losses do not stop the CEO and the top 800

managers to give themselves raises and bonuses on the backs of the employees who made huge concessions in 2003. AMR's motto is "Pull Together, Win Together." The only ones winning are management so they can "retain" these great minds. Yeah Right!!!

[WriteDown]

8. Good point...

I'm surprissed they have 800 managers. That is more than I thought.

[vinylsolution]

9. Some of the legacy airlines....

.... won't be around much longer.

Too many of 'em, and still running on outdated business plans designed around $20/barrel oil. Hmmm....

Better do your flying sooner, rather than later.

This is an industry heading for oblivion.

[Autumn]

10. Must be time for a bail out,

I think the last one was just after 911. Don't really remember the details too well, might have been just loans.