Air- AMR reports strong May profit, predicts 2nd Q profit, first since 2007 – Financial and Business News – MENAFN

Posted: July 1, 2013 in Uncategorized

Jun 29, 2013

(Menafn – Tulsa World – McClatchy-Tribune Information Services via COMTEX) –American Airlines CEO Tom Horton says the company could turn a second-quarter profit after netting 65 million in May.

Last month’s profit was welcome news for the bankrupt company, which lost 132 million in May 2012.

Through the first two months of the second quarter, parent AMR Corp. is still 40 million in the red, according to a company filing Friday with the U.S. Securities and Exchange Commission.

AMR reported a 105 million loss in April, but earnings seem to be improving as American Airlines closes in on three months before its expected merger with Tempe, Ariz.-based US Airways.

Horton says that in view of numbers logged in June 2012, a comparable travel month when the company made 33 million, a profitable quarter is within reach.

“Today we reported our financial results for May, which show continued progress toward completion of a most successful restructuring,” Horton said in a letter to employees. “And we expect to report a strong, profitable second quarter — our first since 2007.”

American has been reporting monthly financial details since it filed bankruptcy Nov. 29, 2011.

Airlines typically struggle in the first quarter, and American has had few winning quarters in the last decade plus.

American’s only quarterly profit since it filed bankruptcy was 262 million in the 2012 fourth quarter. Those results were aided by a favorable tax situation tied to losses that year.

Revenues in May were down by 51 million from May 2012, but the company managed to trim expenses by 120 million, thanks to revamped labor contracts and more passengers on fewer routes.

American Airlines is still garnering support for its bankruptcy reorganization plan. The company is set to emerge from court projection around Aug. 15, when the judge plans to hold a confirmation hearing.

The merger plan is awaiting federal antitrust approval, as well as a go-ahead vote by US Airways shareholders on July 12.

via AMR reports strong May profit, predicts 2nd Q profit, first since 2007 – Financial and Business News – MENAFN.


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