WunalaDreaming
Topic Author
Posts: 189
Joined: Tue Aug 28, 2001 4:44 pm

American Airlines Makes Record Loss...

Thu Jan 17, 2002 1:56 am

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
 
Jer32382
Posts: 297
Joined: Fri Apr 25, 2003 10:35 am

RE: American Airlines Makes Record Loss...

Thu Jan 17, 2002 2:10 am

Aging fleet of 717's?
 
David_itl
Posts: 5946
Joined: Wed Jun 27, 2001 7:39 am

RE: American Airlines Makes Record Loss...

Thu Jan 17, 2002 2:11 am

 
bmi330
Posts: 1429
Joined: Sun Nov 11, 2001 9:04 am

RE: American Airlines Makes Record Loss...

Thu Jan 17, 2002 2:16 am

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
 
LH423
Posts: 5868
Joined: Sun Jul 11, 1999 6:27 am

RE: American Airlines Makes Record Loss...

Thu Jan 17, 2002 6:27 am

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

LH423
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