FORT WORTH, Texas, April 18 /PRNewswire-FirstCall/ -- AMR Corporation (NYSE
: AMR - News), the parent company of American Airlines, Inc., today reported a net profit of $81 million for the first quarter of 2007, or $0.30 per diluted share.
The current quarter results compare to a net loss of $92 million, or $0.49 per diluted share, in the first quarter of 2006.
First Quarter Highlights
-- American announced that it had notified Boeing of its intent to begin
pulling forward deliveries of 47 737-800 aircraft to replace a portion
of its MD
-80 fleet, with the first three aircraft scheduled for
delivery in early 2009. Arpey cited the fleet renewal announcement as
a key step toward American's goal of improving fleet fuel efficiency
by more than 20 percent by 2020.
-- American announced that it would invest up to $100 million in
facility, technology and process improvements to help its Maintenance,
Repair and Overhaul (MRO
) business compete for more third-party
maintenance contracts. American's MRO
business generated nearly
$95 million in third-party revenue in 2006.
-- AMR continued to improve its balance sheet by paying down the
$285 million balance on its revolving credit facility and by prepaying
$79 million in aircraft debt. In April, the Company also completed the
refinancing of $350 million of tax-exempt bonds. These actions are
expected to eliminate approximately $15 million in annual net interest
expense for the Company.
-- AMR improved its financial strength by selling 13 million new shares
of common stock to raise nearly $500 million.
-- AMR was honored by PLANSPONSOR Magazine as Corporate Plan Sponsor of
the Year for the Company's efforts to protect and preserve its
employees' defined benefit pension plans. In addition to contributing
more than $1.5 billion to its employees' defined benefit pension plans
since 2002, the Company expects to contribute $364 million to these
plans in 2007. Through April 13, AMR had made $180 million of its
expected 2007 contributions.
-- AMR began to accrue for a potential profit sharing payout to employees
for the 2007 year, payable in 2008. There can be no assurance that the
Company's forecast will approximate actual results, which are
dependent upon many factors, including fuel prices and economic and
-- American launched an initiative to become the clear airline of choice
for passengers in the New York market, with its commitment
demonstrated by additional routes, enhanced offers and promotions.
-- American launched a new online booking tool on AA
.com that makes it
easier and more convenient for AAdvantage program members to redeem
earned miles for travel.
-- American announced that it began installing new personal video and
audio entertainment devices in Business Class cabins on its 58 Boeing
GREAT NEWS!!!! Good job Mr. Arpey, management, and all employees of AA
. There are only good things to come from a healthy aviation industry.
Kind of disappointed they didn't announce a 787 order yet.
Now, bring back the second daily TPA
[Edited 2007-04-18 17:38:10]