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American Airlines Makes Record Loss...  
User currently offlineWunalaDreaming From United Kingdom, joined Aug 2001, 196 posts, RR: 1
Posted (12 years 6 months 2 weeks 6 days 8 hours ago) and read 933 times:

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.

Retirements at AMR

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.

Rough ride

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.

Copyright BBC 2002

4 replies: All unread, jump to last
 
User currently offlineJer32382 From United States of America, joined Apr 2003, 34 posts, RR: 0
Reply 1, posted (12 years 6 months 2 weeks 6 days 7 hours ago) and read 907 times:

Aging fleet of 717's?

User currently offlineDavid_itl From United Kingdom, joined Jun 2001, 7363 posts, RR: 14
Reply 2, posted (12 years 6 months 2 weeks 6 days 7 hours ago) and read 904 times:
Support Airliners.net - become a First Class Member!


Already brought up in
http://www.airliners.net/discussions/general_aviation/read.main/707409/

David/MAN


User currently offlineBmi330 From United Kingdom, joined Nov 2001, 1450 posts, RR: 1
Reply 3, posted (12 years 6 months 2 weeks 6 days 7 hours ago) and read 897 times:

the news said aging 717 fleet k and is it really a surprise they lost that much cash lock at all the shit they have been through they'll bounce back or BA could bay them and make them there us sub a whish only kiding k

User currently offlineLH423 From Canada, joined Jul 1999, 6501 posts, RR: 54
Reply 4, posted (12 years 6 months 2 weeks 6 days 3 hours ago) and read 841 times:

Quelle surprise!!! Like we didn't already see this one coming for 3 months.

LH423



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