AMR Posts Record Revenue, Adjusted Profit of $95M
The $95 million represented a $381 million improvement over the same period a year earlier. Including reorganization costs and special items, the parent of American Airlines lost $241 million, compared with a net loss of $286 million a year earlier. Revenue rose 5.5% to $6.5 billion.
"This was a time of exceptional improvement," said CEO Tom Horton, in a prepared statement. "Our revenue performance has topped the industry for several months, leading to our first second-quarter profit in five years excluding reorganization and special items.
This improvement reflects only a fraction of our ongoing restructuring progress," Horton said. "While there is still much to be done, we expect this momentum to build quickly as the new American re-emerges as an industry leader."
For several months, AMR has reported continuing monthly improvement in its revenue per available seat mile.
During the quarter, consolidate passenger revenue per available seat mile grew 9.1%, while mainline PRASM grew 8.7%. Domestic PRASM increased by 8.5%. International PRASM grew by 9%, with an 8.5% gain in the Atlantic and an 18.1% gain in the Pacific. Premium cabin demand rose significantly in both regions.
Mainline capacity fell by 2.4%. Consolidated load factor was 84.5% while mainline load factor was 85.1%, a record for any quarter. The carrier said its revenue performance was driven by higher yield combined with higher load factors.
"These industry-leading year-over-year revenue increases reflect the strength of our network and alliances, our focus on the customer, and the effectiveness of our overall strategy," said Chief Financial Officer Bella Goren.
On the cost side, cost per available seat mile, excluding fuel costs, increased 2.3%. Consolidated operating expenses, excluding special items, totaled $6.2 billion, essentially flat with the same period last year.
AMR ended the second quarter with about $5.8 billion in cash and short-term investments, up slightly from $5.6 billion a year earlier and up from $4.8 billiong when it sought bankruptcy protection on Nov. 30, 2011.