AMR Corporation, American Airlines parent, reported a first quarter 2009 net loss of $375 million as a weak economy hurt AA’s revenue. The current quarter results compare to a net loss of $341 million for the first quarter of 2008, the company said. AA will continue to focus on improvement in areas within its control.
“While lower fuel prices have provided a significant buffer against falling demand in 2009, the struggling economy and capital markets remain significant challenges for American and the rest of the industry," said AMR Chairman and CEO Gerard Arpey. "Even as we feel the impact of declining revenues, fares and traffic, we continue to make progress in areas within our control."
Among AA’s accomplishments year to date, Arpey noted that AA was able to obtain nearly $100 million from a loan secured by aircraft, reduce planned 2009 capital expenditures by about $100 million, and identified ways to help control unit costs. It also received an additional financing commitment for two of its Boeing 737-800 deliveries and put into service two new 737s to begin the process of replacing its MD-80 fleet.
"Thanks in large part to the efforts of our employees, we also continued to improve our customer dependability. Our 2009 outlook remains challenging, but the hard work we have done in recent years to bolster liquidity, reduce debt and operate with capacity discipline has better prepared us to face these difficulties," Arpey added.
AMR reported first quarter consolidated revenues of approximately $4.8 billion, a decrease of 15 percent year over year, largely driven by reduced capacity and economic factors. This includes less passenger traffic and lower fares, as well as lower cargo demand, AMR said.
Other revenues, including sales from such sources as confirmed flight changes, purchased upgrades, Buy-on-Board food services, and bag fees, increased 6.9 percent year over year to $558 million in the first quarter, compared to the first quarter of 2008.