American posts full year and Q4 losses in 2012

Washington DC
Source:
This story is sourced from Pro
See more Pro news »

American Airlines has reported a $130 million loss for 2012 and a loss of $88 million during the fourth quarter, excluding reorganisation expenses and special items.

Both are improvements over the same periods in 2011, when the Fort Worth-based carrier reported a $1.06 billion loss for the year and a $209 million loss for the quarter, excluding reorganisation expenses and special items.

American reports a $1.9 billion loss for the full year including $2.2 billion in reorganisation expenses. The loss was down 5.8% from 2011.

Operating revenue was up 3.7% to $24.9 billion and operating expenses down 1.1% to $24.7 billion for an operating profit of $107 million in 2012. Passenger revenue per available seat miles (PRASM) was up 5.8% to 13.03 cents.

American paid an average of $3.20 per gallon of jet fuel in 2012.

"Throughout 2012, we have executed on all aspects of our business plan - streamlining our organisational structure, increasing unit revenues, reducing unit costs, and restructuring our balance sheet," says Bella Goren, chief financial officer of American's parent AMR. "The strong financial foundation we are building gives us the ability to deliver returns to our financial stakeholders and make investments that create enhanced value for our customers and our people."

American posted a profit of $262 million during the fourth quarter including $350 million in net positive reorganisation and special items. This is a turn around from a $1.1 billion net loss during the period in 2011.

The airline notes that superstorm Sandy and operational issues in September and October reduced net profits by $142 million during the quarter.

Operating revenue was down 0.3% to $5.9 billion and operating expenses was down 12% to $5.9 billion for an operating profit of $4 million in the quarter. PRASM was flat at 12.61 cents.

American paid an average of $3.22 per gallon for fuel during the quarter.

"Having reached the vast majority of our restructuring milestones already, we can now focus on the new American becoming reality," says Tom Horton, chief executive of AMR, in a letter to employees today. "With the financial capacity to make the investments to compete with the best in the world, we will also create new opportunities for our people."

American had $4.7 billion in cash and short-term investments as of 31 December 2012. This includes $850 million in restricted cash.