AMR Posts USD$807 Million Loss For March

April 30, 2012

Bookmark and Share

AMR, the bankrupt parent of American Airlines, posted a net loss of USD$807 million for March and said it spent more than USD$2 billion on fuel, wages and other expenses.

The company spent USD$779 million on fuel and USD$597 million on wages, salaries and benefits, it said in its monthly operating report filed with the SEC.

Total operating expenses amounted to USD$2.10 billion, while operating revenue came to USD$2.2 billion for March.

AMR ended the month with USD$4.82 billion in cash and short-term investments.

The company filed for Chapter 11 protection last year, saying its wage costs are higher than rivals that used bankruptcy previously to restructure.

AMR is trying to convince its bankruptcy court to let it void deals it has with unions that are not willing give the concessions the airline says it needs to survive.

The company has said it needs to trim its costs by USD$2 billion a year.

Earlier this month, labour groups at American Airlines said they support a potential merger with rival US Airways in a deal they say would save more jobs than a plan by parent AMR to reorganise as a stand-alone carrier.