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American Airlines Reports $436 Million Net Loss for QuarterApril 20, 2011 By: George Dooley Travel Agent
AMR Corporation, the parent company of American Airlines, Inc., reported a net loss of $436 million for the first quarter of 2011 that was driven by higher fuel costs. The first quarter 2011 results included the impact of approximately $31 million in one-time non-cash charges related to certain sale/leaseback transactions. Excluding this special item, the company said it incurred a loss of $405 million for the first quarter of 2011. Despite much higher fuel prices, AMR said it reduced its first-quarter net loss by $69 million versus the prior year period.
AMR said that its first quarter and recent highlights included joint business agreements with British Airways and Iberia; a newly aligned summer schedule; an American Airlines and Japan Airlines launch of trans-Pacific joint business; a new Los Angeles focus; fleet renewal; a fourth-quarter capacity cut facilitated by the MD-80 fleet; and strengthened liquidity.
“High fuel prices remain one of the biggest challenges to our industry and our company,” said AMR Chairman and CEO Gerard Arpey. “We believe our steps to aggressively increase revenues, reduce capacity, control non-fuel operating costs, and bolster liquidity will help us to better manage the challenges we currently face.”