VOL. 127 | NO. 64 | Monday, April 02, 2012
Losses Keep Mounting at American Airlines
FORT WORTH, Texas (AP) – The parent company of American Airlines told a bankruptcy court that it lost $619 million last month as revenue declined from January and failed to offset major expenses like fuel and labor.
AMR Corp. said the loss included $375 million in bankruptcy-related expenses, mostly to reject agreements supporting airport bond issues and aircraft leases. The company paid $15 million to advisers last month.
Revenue was $1.81 billion. AMR didn't give a comparable figure for February 2011, but revenue declined 10.8 percent from $2.03 billion in January of this year, as passengers on American and American Eagle flew 8.2 percent fewer miles.
The company disclosed the monthly financial figures in a filing Thursday in U.S. bankruptcy court in New York.
AMR said fuel was its biggest expense in February, at $682 million, followed by labor, $584 million. This week, AMR asked the bankruptcy court to throw out the airline's contracts with unions for pilots, flight attendants and ground workers and to impose the company's pay and work demands.
American Airlines and AMR filed for bankruptcy protection in November. The airline plans to cut 13,000 jobs and get labor-cost concessions from its unions.
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