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AA/CO 4th Qtr 2001 Losses  
User currently offlineDavid_itl From United Kingdom, joined Jun 2001, 7329 posts, RR: 14
Posted (12 years 3 months 6 days 17 hours ago) and read 994 times:
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Taken from http://news.bbc.co.uk/hi/english/business/newsid_1763000/1763559.stm


AMR, the parent of the world's largest carrier American Airlines, lost nearly $800m (£560m) in the final three months of 2001, setting the seal on a dismal year for the aviation industry.

Rival Continental Airlines also turned in heavy losses of $220m, not including a $174m federal bailout package. Including both the bailout and other charges, the loss for the quarter was $149m.

Both companies blamed their woes on the sudden collapse in bookings following 11 September, as well as the depressive effect of the generally weak global economy.

Unlike the previous quarter, fuel bills - down nearly a quarter year on year - could not be held responsible, given the collapse in oil prices from late September onwards.

In all, AMR's loss was $798m, or $5.17 a share, slightly more than most analysts were expecting, on sales of $3.8bn, down from $4.86bn in the same period the year before.

The AMR numbers compare with a $47m profit in the same quarter of 2000. The three months to September saw a $414m loss despite help from the US Government's half-billion dollar bailout package.

The company has cut 20,000 jobs since 11 September in a move which few analysts believe could have been avoided even without the additional pressure of the post-attack slump.

In response to the situation, the company said it is retiring its ageing fleet of Boeing 717 100-seater aircraft in June.

Meanwhile, Continental is hoping to put plans to buy new planes from Boeing on ice.

AMR's chairman and chief executive, Don Carty, said in a statement that the record quarterly loss was caused by lower fares and the decline in business travel in particular.

"Influenced by the lingering effects of last September's attacks, the final three months of 2001 were incredibly difficult," he said.

David


4 replies: All unread, jump to last
 
User currently offlineAlpha 1 From , joined Dec 1969, posts, RR:
Reply 1, posted (12 years 3 months 6 days 15 hours ago) and read 974 times:

In response to the situation, the company said it is retiring its ageing fleet of Boeing 717 100-seater aircraft in June.

That's a pretty funny line, since the 717's aren't more than a few years old at most, as they flew under the TW banner!!


User currently offlineBoiler Special From United States of America, joined Aug 2000, 135 posts, RR: 3
Reply 2, posted (12 years 3 months 6 days 14 hours ago) and read 968 times:

The oldest 717 will be turning 2 in February... hardly aging. Once again kudos to the reporters that can't do their homework.

-Kevin


User currently offlineLuckySevens From , joined Dec 1969, posts, RR:
Reply 3, posted (12 years 3 months 6 days 13 hours ago) and read 955 times:

The 717 is not old.
I think the reporter got it mixed up with 727.
Speaking of messed up reporters:

I once met an Aviation reporter that tried to explain to me that the 737 did not have two engines, it had three..hence 737 he told me that that held true for all of Boeing's fleet and the aircraft I was thinking of was the 727.

I guess the 707 was the world's first jet glider....


User currently offlineHOffa From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 3 months 6 days 13 hours ago) and read 947 times:

No end in sight to the economic misery it seems.

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