American Airlines' parent firm reports first quarter loss

15:02, April 22, 2010      

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AMR Corp., parent of American Airlines Inc., reported on Wednesday a net loss of more than 500 million dollars for the first quarter of 2010, blaming the bad economy and rising of fuel prices.

The company, headquartered in Fort Worth, Texas, said in a press release that it posted revenues of 5.07 billion dollars in the first quarter of 2010.

In the first quarter of 2009, the company recorded a net loss of 375 million dollars on revenues of 4.84 billion dollars.

"While we made significant progress in improving revenue performance in the first quarter and enhancing our competitive position, we were simply unable to overcome the challenges of the global economic environment coupled with once-again escalating fuel prices," AMR chairman and chief executive Gerard Arpey said.

The company said that February's snowstorms on the east coast and earthquakes in Haiti and Chile cost the company between 20 million and 25 million dollars, and that the devaluation of the Venezuelan currency in January cost the company another 53 million dollars.

AMR, which also owns the American Eagle regional airline, increased spending on fuel and maintenance by double-digit percentages. Fuel prices have risen about 20 percent since early February.

The company faces difficult relations with its labor unions, which are negotiating for pay raises while the company tries to hold the line on spending. Two of American Airlines' three unions have asked federal mediators to let them start a 30-day countdown toward a strike, but mediators instead ordered negotiators to keep working.

"As we move forward, we remain focused on continuing to bolster our domestic and international networks, managing our costs and finding ways to generate additional revenue," Gerard Arpey said.

The American Airlines, a pillar of AMR, is the world's second largest airline in passenger miles transported, passenger fleet size and operating revenues. The mainstay is hoping for stronger bookings in the busy summer vacation season.

Industry analysts expect AMR Corp. will make money in the second and third quarters.

Source:Xinhua

(Editor:黄蓓蓓)

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