AMR Corporation, parent of American Airlines, has reported a net loss of $162 million for the third quarter of 2011 compared to a net profit of $143 million for the same period of 2010. The results reflect the adverse impact of quarter-end volatility in crude oil prices and foreign exchange rates, AMR said
In the third quarter, AMR's overall performance was negatively impacted by fuel prices, which increased 41 percent compared to the prior year period. Taking into account the impact of fuel hedging, AMR paid on average $3.15 per gallon for jet fuel in the quarter versus $2.24 per gallon in the third quarter of 2010. As a result, the company paid $653 million more for fuel in the third quarter of 2011 than it would have paid at prevailing prices from the corresponding prior-year period.
American is taking several actions to improve financial and operational performance in the following areas, AMR said. These include: capacity reduction, 757 retirements, driving revenue performance from Trans-Atlantic and Trans-Pacific Joint Businesses, a $726 million Public Offering and other actions.
"While the third quarter was challenging for American Airlines, we are taking aggressive actions to improve the company's performance and strengthen its foundation for long-term success," said AMR Chairman and CEO Gerard Arpey.
"We have put in place many of the critical building blocks for a successful future, including a strong network and alliance partnerships, accelerated fleet renewal plans and innovative products and services to enhance our customers' experience. At this point, our immediate top priority is to address the key remaining foundational issue, which is our cost structure, so that we can change the competitive dynamics and move our company forward on the path to profitability," Arpey said.