American Airlines (AMR) 2nd Quarter Results

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
By Ann Keeton
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--The head of American Airlines said Wednesday that the airline business is in worse shape than it was a year ago.
The current drop in revenue is more painful than the sky-high fuel costs of 2008, Gerard Arpey, chairman and chief executive of American Airlines' parent, AMR Corp. (AMR), said in a message to employees.
Last year, soaring oil prices pushed U.S. airlines to losses during the peak travel season, and led them to cut unprofitable routes. Now, oil prices have fallen by half, but the global recession has sharply cut passenger travel. Arpey said passenger revenue at AMR fell 23% in the second quarter.
Still, AMR beat Street expectations with a second-quarter loss of $390 million. Shares were recently trading at $4.26, up 8 cents, or 1.91%. AMR shares are up 6.2% for the month but are down nearly 60% year-to-date.
The second-largest U.S. carrier by revenue kicked off the airline sector's reporting season, with most airlines expected to report second-quarter losses.
Airlines across the board are building up cash as they head into fall, a weak revenue season. If passenger traffic doesn't begin to recover soon, some industry-watchers believe there could be airline bankruptcies in 2010.
AMR has been among the most successful at raising funds - although borrowing is expensive - and said it has facilities in place for aircraft deliveries through 2011.
Analyst Jamie Baker at JPMorgan on Wednesday noted AMR's efforts to shore up its balance sheet, including a negotiation with its credit-card processor. Other airlines, such as UAL Corp. (UAUA), parent of United Airlines, and US Airways Group (LCC), are running out of time to raise needed cash, Baker said, adding that "we continue to believe Chapter 11 can be averted at AMR."
AMR said it ended the quarter with $3.3 billion in cash and short-term investments, down from $5.5 billion a year ago.
AMR on Wednesday said its quarterly loss narrowed from a year ago, reflecting lower fuel prices and cost cuts. The $1.39-per-share deficit compared with $1.46 billion, or $5.83 per share a year ago. Excluding one-time charges, mainly related to falling aircraft values, the loss narrowed to $1.14 per share from $1.19 per share last year.
The U.S. airline industry has reduced seat capacity this year to match falling passenger demand. A drop in business travel, especially on international routes, has taken the biggest bite out of revenue. AMR said earlier this year it would cut 2009 seat capacity by 7.5% from last year.
Even though planes have been flying full this summer, with fewer tickets being sold and constant fare sales, carriers are expected to record a second year of losses in what is traditionally the strongest travel season.
The company said it has completed financing for the 84 aircraft due to arrive through 2011, the largest delivery schedule in the U.S. industry.
- By Ann Keeton, Dow Jones Newswires; 312-750-4120; ann.keeton@dowjones.com
 

contrail67

Well-known member
Joined
Oct 13, 2003
Posts
954
Total Time
15,000
Thank you for posting something we can all read on the daily news ticker...WHAT IS YOUR POINT.
 

AA717driver

A simpler time...
Joined
Mar 27, 2003
Posts
4,911
Total Time
+/-13k
Just another AA basher (joining the other 100 million or so...). ;)

There are lies, d@mned lies and corporate financial statements. (Apologies to Mark Twain.)

:D
TC
 

jonjuan

Honey Ryder
Joined
Feb 26, 2004
Posts
4,155
Total Time
3,000+
...to see how stupid people are to click on clearly stated subject lines that they are not interested in?

Clicking on your posts is like watching the retarded kid across the street bang garbage can lids together on his porch. It's sad, but it makes me laugh.
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
pot meet kettle, lol

Clicking on your posts is like watching the retarded kid across the street bang garbage can lids together on his porch. .

Likewise....:p


04-09-2008, 01:36 Replies: 49
Delta, Northwest could announce merger in next week
Views: 2,256
Posted By jonjuan
There will not be a DAL/NWA merger.

There will not be a DAL/NWA merger.


Forum: Majors [ 04-03-2008, 21:52 Replies: 55
NWA says it will cut flights, ground planes
Views: 3,268
Posted By jonjuan
There will be no merger between NWA and DAL.

There will be no merger between NWA and DAL.


Forum: Majors [ 04-03-2008, 00:21 Replies: 31
Delta Board to meet this week, talk about merger---AJC article
Views: 1,668
Posted By jonjuan
There will be no NWA/DL merger.

There will be no NWA/DL merger.




Forum: Majors [ 03-30-2008, 23:27 Replies: 123
Wall Street Jornal: NWA "reworks plan for merger"
Views: 4,422
Posted By jonjuan
This merger will not happen. No way, no how.

This merger will not happen. No way, no how.


Forum: Majors
] 03-30-2008, 20:45 Replies: 123
Wall Street Jornal: NWA "reworks plan for merger"
Views: 4,422
Posted By jonjuan
This merger is going to happen and furlough...


This merger will not happen. No way, no how.























 
Top