AMR Posts USD$1.1 Bln Fourth-Quarter Loss

February 15, 2012

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AMR, the parent company of American Airlines, posted a fourth-quarter net loss of USD$1.1 billion, compared with a loss of USD$97 million a year ago.

Quarterly revenue rose 7 percent to USD$6 billion.

Full-year 2011 net loss was USD$1.98 billion on revenue of USD$23.98 billion.

American's mainline passenger revenue per available seat mile (RPSM) increased 9 percent in the fourth quarter, while mainline load factor was 82.1 percent.

Total available seat miles fell by 2 percent in the fourth quarter, the company said in a statement.

The company recorded USD$866 million in non-cash special charges, of which USD$118 million was primarily due to rejection of 24 leased aircraft.

AMR has said since its bankruptcy filing that it would cut operating expenses by USD$2 billion and slash 13,000 jobs.

The company wants to generate USD$1 billion a year in new revenue through changes in its route network, fleet utilisation and product improvements.

Unlike rivals United Airlines and Delta Air Lines, AMR did not restructure in the last 10 years. Those carriers emerged stronger and later found merger partners.

Also on Wednesday, the Transport Workers Union and the Association of Flight Attendants asked AMR to offer buyouts to workers in place of layoffs.

Separately, AMR announced the retirement of two senior executives. Peter Dolara, senior vice president - Mexico, Caribbean and Latin America, will retire on June 30. Tom Del Valle, senior vice president - airport services and cargo, also will retire by June 30.

AMR had previously said it would thin out its executive ranks as part of its reorganisation.

(Reuters)