American posts $105 million net loss for April

Posted Wednesday, May. 29, 2013  comments  Print Reprints
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American Airlines’ parent company, AMR Corp., reported a $105 million loss in April.

The financial disclosure was made in a monthly operating report filed with the U.S. Bankruptcy Court on Wednesday.

Excluding $119 million in reorganization fees and other accounting items, the Fort Worth-based carrier would have posted a monthly net profit of $14 million.

“I’m pleased to report that, excluding reorganization and special items, we posted a very strong improvement to our bottom line,” AMR Chief Executive Tom Horton said in a letter to employees. “And if current trends continue, we are well on our way to a strongly profitable second quarter.”

The company said it spent $52 million on aircraft financing renegotiations and rejections and $11 million on professional fees during the month. It also spent $3 million on “other” reorganization items, which are not detailed in the report.

AMR said that its mainline carrier, American Airlines, had passenger revenue of $1.5 billion for the month and that its regional affiliates, including American Eagle, brought in $233 million. Total revenue, which also includes cargo, was $1.99 billion.

The company ended the month with $657 million in cash and $3.7 billion in short-term investments for a total of about $4.4 billion on hand. That number does not include $852 million in restricted cash.

Next week, the Bankruptcy Court will hold a hearing on AMR’s restructuring plan to decide whether the carrier can take it to creditors. The U.S. bankruptcy trustee has objected to Horton’s $20 million severance package that is included in the restructuring plan.

Andrea Ahles, 817-390-7631 Twitter: @Sky_Talk

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