AMR posts profit in quarter, but $1.87 billion loss for year

Posted Wednesday, Jan. 16, 2013  comments  Print Reprints

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AMR Corp., the Fort Worth-based parent of American Airlines and American Eagle, posted a $262 million profit in the fourth quarter partly boosted by a settlement in a lawsuit.

The company said revenues were down slightly in the quarter to $5.93 billion.

Hurricane Sandy, an early November snowstorm on the East Coast and poor bookings due to operational disruptions earlier in the fall reduced the company's quarterly profit by $142 million, the parent company of American Airlines reported.

Excluding one-time items and reorganization costs, AMR would have posted a loss of $88 million. The accounting items totaled a net benefit of $350 million to the company and included a $280 million benefit from the "settlement of a commercial dispute" and $441 million in charges related to restructuring debt, aircraft leases and paying professional fees while the company is in bankruptcy. The carrier also recognized $58 million in charges related to employee buyouts and retirements in the quarter.

For the full year, AMR posted a loss of $1.87 billion, an improvement over its $1.97 billion loss in 2011. The carrier also reported revenues of $24.85 billion, the highest in AMR's history.

"We have made enormous progress towards building the new American," said AMR chief executive Tom Horton in a statement on Wednesday morning. "It is remarkable what the American team has been able to accomplish, including generating record revenue and a return to an operating profit for the year while restructuring every aspect of our company."

The annual results also include $1.7 billion in reorganization items as it renegotiated financing terms on more than 400 aircraft and renegotiated contracts with over 9,000 vendors and suppliers. AMR filed for bankruptcy protection in November 2011.

AMR ended the year with about the same amount of cash on hand as it did in 2011. The company reported it had $4.7 billion in cash and short-term investments including a restricted cash balance of $850 million by the end of the fourth quarter.

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