AMR Corp. said Monday that it posted a profit of $135 million in July -- the second month in a row in the black for the bankrupt carrier.
The profit came in the heart of the busy summer travel season. A better test will be whether the carrier can generate monthly profits during the slower fall and winter travel months, said Bill Swelbar, airline researcher at the Massachusetts Institute of Technology."Their revenue performance is good, and it has been very good on a year-over-year basis," Swelbar said.Excluding a net charge of $54 million in reorganization fees, AMR's monthly profit would have been even higher at $189 million, according to a court filing.The company said it spent $18 million on professional fees during the month and $36 million on aircraft and facility financing renegotiations.The monthly profit is a positive sign since the carrier has not yet implemented concessionary labor contracts that will help it reduce operating costs, Swelbar said. American has new contracts with all of its labor groups, except its pilots. On Sept. 4, the bankruptcy court will convene to hear arguments over American's second motion to throw out its pilot contract and impose new concessionary terms.AMR said that its mainline carrier, American Airlines, had passenger revenues of $1.8 billion with its regional affiliates, including American Eagle, bringing in $261 million in revenues. Total revenues for the month were $2.3 billion.The company ended the month with $444 million in cash and $4.4 billion in short-term investments for a total of about $4.8 billion on hand, slightly lower than the $5 billion AMR had on hand, excluding restricted cash, in June.Andrea Ahles, 817-390-7631Twitter: @Sky_TalkHave more to add? News tip? Tell us
