AMR says unit revenue reached all-time high in July

Posted Monday, Aug. 12, 2013  comments  Print Reprints
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AMR Corp. said Monday that its consolidated unit revenue at American Airlines and American Eagle increased in July by an estimated 4 percent over last year.

Passenger revenue per available seat mile, an important industry measure, rose to an all-time high for any month of 14.61 cents, the company said.

AMR reported the strong results as it reaches the end of its bankruptcy reorganization, whichis exepected to end in a merger with US Airways. U.S. Bankruptcy Judge Sean Lane is expected to confirm the company’s restructuring plan Thursday.

Both capacity and traffic increased at AMR during the month, by 2.6 percent and 2.5 percent respectively. Domestic traffic was 0.3 percent higher year over year on 0.2 percent less capacity, and international traffic increased 5.4 percent on 6.2 percent more capacity.

In a letter to employees, Virasb Vahidi, American’s chief commercial officer, called the results a “very strong performance.”

“Coming on the heels of our record second-quarter 2013 profit, July’s positive result is a testament to your hard work in strengthening every aspect of the customer experience: network, partnerships, products and services, loyalty programs,” he wrote. “Our sales initiatives and revenue management strategies are also continuing to deliver strong results, and we’re making progress in a number of other areas.”

Also Monday, Moody’s Investor Service said it’s considering an upgrade to its ratings on US Airways’ corporate debt in anticipation of its merger with American.

Moody’s said the merged company, which will pass United Continental to become the world’s largest airline, will have a favorable competitive advantage, financial flexibility and sizable liquidity.

US Airways, based in Tempe, Ariz., has said it expects the merger to close by the end of the third quarter. US Airways Chairman and CEO Doug Parker will become CEO of the new American Airlines Group, to be based in Fort Worth.

Steve Kaskovich, 817-390-7773 Twitter: @stevekasko

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