American Airlines Reports 1Q 2012 Net Loss of $1.7 Billion

Despite revenue gains, in the first quarter 2012, AMR Corp., parent of American Airlines (AA), reported a net loss of $1.7 billion compared to a net loss of $436 million in the same period of 2011. Excluding reorganization and special items, the net loss was $248 million compared to the net loss of $405 million for first quarter 2011, AA says.

AMR recorded first quarter 2012 consolidated revenues of approximately $6.0 billion, an increase of 9.1 percent year-over-year.

Consolidated passenger revenue per available seat mile (unit revenue) grew 10.3 percent compared to the first quarter 2011, and mainline passenger unit revenue increased 10.0 percent.

The company's revenue performance was driven by significant demand and a positive pricing environment that resulted in higher load factors and better yields, AA said. Domestic unit revenues increased across all five of the company's hubs.

International performance was improved across all regions, with unit revenue in the Atlantic entity increasing by 9.7 percent in first quarter 2012 versus the same period last year, as American continues to capitalize on its joint trans-Atlantic business with British Airways and Iberia.

Latin America, the company's largest international entity, posted a unit revenue increase of 10.8 percent in first quarter 2012 driven by yield improvements in Mexico, Central and South America.

First quarter results include approximately $1.4 billion in reorganization items resulting from the voluntary filing by the company under Chapter 11. Approximately $1.0 billion is related to the company's aircraft financing renegotiations.

AA said it paid $325 million more for fuel in first quarter 2012 than it would have paid at prevailing prices from the prior-year.


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