AMR posts $291m profit

[BoilerUP]

I was a paying passenger on AA during this quarter and the customer service was VASTLY improved IMO from when I worked for AX as a ticket agent 2002-2004. Good job, guys!

AMR Reports Sharply Higher Profit
Wednesday July 19, 11:17 am ET
Parent of American Airlines Reports Sharply Higher Profit for 2nd Quarter
DALLAS (AP) -- The parent of American Airlines, the nation's largest carrier, reported a sharply higher profit for the second quarter, helped by full airplanes and higher fares at the start of the peak summer travel season. It was only its second profitable quarter -- excluding those helped by one-time items -- in the past five years.
AMR Corp. said Wednesday it earned $291 million, or $1.14 per share, in the three months ended June 30, up from $58 million, or 30 cents a share, a year ago. The latest results matched the forecast of analysts surveyed by Thomson Financial.
Revenue rose 12.5 percent to $5.98 billion from $5.31 billion a year ago and slightly higher than the $5.93 billion that analysts had expected.
That boost in revenue was enough to offset high fuel prices. American and its regional affiliate, American Eagle, spent $374 million more on fuel than it would have spent at mid-2005 prices.
American has been culling gas-guzzling planes in its fleet and taking other cost-cutting steps. American, along with other major carriers, has also pushed through several fare increases.
"We are pleased to have earned a quarterly profit -- just our second in the last 22 quarters without the benefit of special items," Chairman and Chief Executive Gerard Arpey said in a statement. "Our performance indicates very clearly that we are on the right track, but also demonstrates -- just as clearly -- that we have more work to do to return our company to financial health."
Arpey said high fuel costs remain a major roadblock, along with the growth of competition from low-cost airlines and those who used the bankruptcy process to cut costs.
American's planes flew fuller in the second quarter, averaging 82.6 percent occupancy, compared to 79.5 percent a year earlier.
The company also boosted its revenue as a factor of capacity by 11.7 percent, faster than the 8.5 percent increase in costs by capacity.
The second quarter is traditionally a strong one for airlines, as leisure travelers head out on vacation. Arpey said the company would need to sharpen its performance to remain profitable the rest of the year.
AMR spent $3.18 billion on fuel in the second quarter, a 29.9 percent increase, far outstripping modest hikes in wages, salaries and benefits, which are a slightly larger share of the Fort Worth-based company's expenses.
American paid more than $2.09 per gallon for fuel in the quarter, up from $1.63 a year ago.
AMR increased its cash and short-term investments to more than $5.1 billion, excluding restricted balances. The buildup is a legacy of the company's brush with bankruptcy in 2003.

 

[FlyBoeingJets]

Congratulations are in order.

Good work and keep it coming.

 

[T45Flyer]

Great job AA! Lets get those pilots a raise!

 

[big_al]

unless you see large profits like that for a few quarters, they are just adjusting their books to hide their losses

 

[B-atch]

Great job AA! Lets get those pilots a raise!

Lets get the furloughed folks BACK ON THE PROPERTY!!...Pay raises can be negotiated thereafter..

 

[T45Flyer]

Lets get the furloughed folks BACK ON THE PROPERTY!!...Pay raises can be negotiated thereafter..

Fair Enuf!

 

[Andy]

Nice job, AMR.

 

[XRMEFLYER]

Nice job, AMR.

Here,Here! Hopefully a sign of better times ahead for us all!

 

[Guitar Guy]

That's great news for my friends still working there. I hope the trend continues for them.

 

[blzr]

Congrats AA, but keep it in perspective. What would happen to the stock market if Intel, Microsoft, or other fortune 500 companies made a $290m profit? People would panic. Still, it's a start.

 

[mannyaplus11]

Let's just hope that the profits don't all go to upper management in the form of MEGA bonuses.

 

[320AV8R]

Good job AMR.

You won't see any profits at NWA......until, of course AFTER the FAs ratify their deal. :laugh:

Then, with our new "profit sharing plan", Mgmt will buy BMW tugs before they give us any "profit sharing".

 

[Green]

Great job AMR! You have to hand it to management (can't believe I'm saying that) for not going after the pension and taking the easy way out. You can be succesful and maintain retirement benefits.

 

[Longhorn]

Congrats guys and gals

 

[AMRCostUnit]

Great job AMR! You have to hand it to management (can't believe I'm saying that) for not going after the pension and taking the easy way out. You can be succesful and maintain retirement benefits.

Hold on there ace...the employees kept MANAGMENT out of BK. The pilots alone gave a BILLION PER YEAR. So, in a sense, we funded our own pensions since 2003. Plus there is zero chances of getting much of our sacrifice back outside of a Section 6 fight. We'd need a 32% pay increase (23% cut plus 3 years of 3% inflation) just to bring us back to 2003 dollars, let alone raise the bar to get ahead of inflation for a change. How easy will that be?

Yes, we kept the pension...for now...my big question is what will be there in 17 years when I hit the big 6-0?

Unit
Forced AMR Investor at 0% ROR

 

[AA717driver]

Unit--I doubt I will see $185/hour before I reach 60. It will take sustained profitibility from AA to reach the point that the pilot group can wield the leverage to gain the pay back.

On the issue of retirement, the next downturn, I expect to see the A Plan converted to a Defined Contribution plan (my proposal would be to allow people to opt out of the A plan and take a guaranteed 15% contribution to the DC plan. You would have to start with the amount you have in the A plan at the time you opt out. That would ease the transition but give you a "safe" retirement.). I know I'm dreaming but...

TC

 

[aa73]

Thanks for all the kind compliments, Folks.

Cost Unit speaks the truth, it is the us the employees who have truly subsidized this profit by taking one of the first huge paycuts of any major. We would like to see a ROI, hopefully sooner rather than later. As far as the retirement goes.... how long can it last?

My biggest concern with the new upcoming contract is this - senior guys (somewhat close to retirement) negotiating away some key thing just to preserve the retirement a couple more years - when it is still going away anyways! - and thus gutting the contract to bargain for something that will probably not exist anymore anyway. Big trap there!

Cnngrats to all the others who will post a profit!

73

 

[AMRCostUnit]

Unit--I doubt I will see $185/hour before I reach 60. It will take sustained profitibility from AA to reach the point that the pilot group can wield the leverage to gain the pay back.

On the issue of retirement, the next downturn, I expect to see the A Plan converted to a Defined Contribution plan (my proposal would be to allow people to opt out of the A plan and take a guaranteed 15% contribution to the DC plan. You would have to start with the amount you have in the A plan at the time you opt out. That would ease the transition but give you a "safe" retirement.). I know I'm dreaming but...

TC

You mean that GV doens't pay at least that much?

I like your thinking of converting my A Fund promise to cash. Can't live off a promise. AA717 for APA President!! :nuts:

I doubt AMR would do that though...threatening the retirement is big leverage for them.

Like aa73 said...I am also concered about an internal transfer of wealth from the junior guys to the senior guys like..."we'll bump up the pay and "guarantee" the pension in exchange for the 100 seater to Eagle."

You know, it's pretty bad when you have to watch what is going on within your own ranks in addition to the company. The whole reason for the 2003 give back was to "save the pension'. For who? With the decrease in book rate, seat displacement and inflation I am sitting at around a 45% paycut for a A/B Fund, in it's current form, I probably won't see.

Unit

 

[AA717driver]

You know, it's pretty bad when you have to watch what is going on within your own ranks in addition to the company. Unit

You've apparently never been a member of ALPA...

The only APA office I'd ever run for would be STL Vice-Chair and that's only to chase that scumbag out of office AGAIN! (I already derailed him once in his very political career...)TC