American Airlines' parent manages profit of $81m in 1Q, a $173m improvement YoY
AMR Corporation, the parent company of American Airlines, Inc., has posted a net profit of $81 million for the first quarter of 2007, or $0.30 per diluted share. (4/20/2007)
The current quarter results compare to a net loss of $92 million, or $0.49 per diluted share, in the first quarter of 2006.
“In spite of significant weather challenges, we continued to build on our momentum by generating a profit in the first quarter. This is our fourth consecutive profitable quarter and the first time we have generated a profit in the first quarter since 2000,” said AMR Chairman and CEO Gerard Arpey.
“We strengthened our balance sheet and liquidity, took a key step in our fleet renewal plan and reinvested in our products and services. While we must continue to improve our financial performance, we believe our results show that we have started 2007 on the right track,” said Arpey.
AMR reported first quarter consolidated revenues of approximately $5.4 billion, an increase of 1.6 percent year over year. AMR estimates that severe weather disruptions reduced first quarter consolidated revenue by approximately $60 million.
“This is a good omen, despite the problem in the first quarter with storms,” reportedly said Ray Neidl, an analyst at Calyon Securities. Neidl said AMR’s results were strong in light of a spike in oil prices, which were directly related to jet fuel prices, in March.
AMR continues to target $300 million in incremental savings for 2007. It expects mainline unit costs excluding fuel to be 1.1 percent higher in 2007 versus 2006 while 2007 consolidated unit costs excluding fuel are expected to increase 1.6 percent year over year.