AMR posts $142 million loss in April

AP News
Posted: Jun 01, 2012 3:16 PM
AMR posts $142 million loss in April

American Airlines' parent company lost $142 million in April as revenue failed to keep up with the cost of jet fuel, labor and other expenses.

AMR Corp.'s net loss was smaller in April than in other recent months, even though revenue fell 7 percent compared with March. Air travel usually picks up from winter into spring.

AMR disclosed its April results in a filing Thursday in U.S. bankruptcy court in New York. Since filing for Chapter 11 protection in late November, AMR has posted a net loss of $2.7 billion including bankruptcy costs and a loss of $1.1 billion excluding those items.

Other airlines have been profitable as higher fares and money from extra fees allowed them to cover jet fuel, labor and other costs.

AMR said that in April it had $75 million in expenses for its bankruptcy reorganization, including $22 million in fees for lawyers and other professionals and $53 million to renegotiate and reject aircraft and facility leases.

Without those reorganization costs, AMR would have lost $67 million on revenue of $2.04 billion. The company did not provide figures for April 2011. Before the bankruptcy filing, AMR reported financial figures on a quarterly basis.

The Fort Worth, Texas, company reported unrestricted cash and short-term investments of $4.81 billion as of April 30 plus another $771 million in restricted amounts, virtually unchanged from the end of March.

American, the nation's third-largest airline, plans to cut jobs and wring cost savings from its labor unions as part of a reorganization plan. The unions are supporting a potential takeover bid by US Airways Group Inc., the nation's fifth-largest airline by passenger traffic.