AMR Corp. posts profit of $44 million

Posted Friday, Mar. 01, 2013  comments  Print Reprints
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Being in Chapter 11 hasn't kept AMR Corp., the parent of American Airlines, from posting a profit for the second consecutive month, according to a court filing Thursday.

The Fort Worth-based carrier, which has operated under bankruptcy protection since November 2011, made $44 million in January.

As part of its restructuring, AMR announced last month that it plans to merge with US Airways. The merger is expected to close in the third quarter.

Excluding $46 million in other expenses primarily related to interest expense, the carrier posted an operating monthly net profit of $91 million. During bankruptcy, AMR is required to file monthly financial reports with the court.

"Our strong financial results in January reflect the increasing positive momentum from our restructuring and highlight the significant progress we are making towards building the new American," spokesman Sean Collins said.

The company said it spent $12 million on professional fees during the month.

It also received $12 million on "other" reorganization items not detailed in the report.

AMR said its mainline carrier, American Airlines, had passenger revenue of $1.6 billion. Its regional affiliates, including American Eagle, brought in $226 million. Total revenue for the month was $2.08 billion.

The company ended the month with $604 million in cash and $3.4 billion in short-term investments, for a total of about $4 billion on hand. That does not include $850 million in restricted cash.

On Thursday, AMR also announced several new routes planned for summer.

American Eagle said it will begin service between Dallas/Fort Worth Airport and two new Mexican destinations -- Hermosillo and Zacatecas -- on June 12, pending government approval.

American Eagle will operate one flight a day to Hermosillo, which is home to a large Ford stamping and assembly facility, and three flights a week to Zacatecas, an old colonial silver city that today has over a dozen mining districts for silver, zinc and other metals.

The flights will use a 44-seat Embraer ERJ-140, the carrier said.

Also on June 12, American will initiate daily service between Miami and San Diego. The flight will use a Boeing 737-800 with 150 seats.

American is also seeking government approval for new flights between Sao Paulo and both Chicago and Los Angeles for service starting in late 2013 and early 2014.

The carrier operates flights to Sao Paulo from New York's John F. Kennedy Airport, Miami and DFW.

Separately, US Airways flight attendants ratified a new contract that includes double-digit pay increases and job protections.

The contract was ratified with 80 percent approval, the Association of Flight Attendants-CWA, said Thursday. This was the third vote on a new contract. Two previous proposals were rejected.

"We are well-positioned to advance as key partners in the merger with American Airlines and will continue our work to further improve wages, benefits and work rules for all flight attendants at the new American," AFA US Airways Presidents Roger Holmin and Deborah Volpe said in a statement.

AFA represents 6,800 flight attendants at US Airways.

The contract includes a requirement that American and US Airways management, AFA and the Association of Professional Flight Attendants, which represents American flight attendants, discuss integration of the attendants work groups.

The discussions are scheduled to begin within 30 days.

"With today's ratification, our flight attendants start the process to become one team and one great new airline," US Airways Chief Executive Doug Parker said.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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