American reports $341m net loss in Q1

Washington DC
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American Airlines reports a $341 million GAAP net loss during the first quarter, on the back of $349 million in reorganisation and special items expenses.

The Fort Worth-based carrier reports a 1% increase in operating revenue to $6.1 billion and a 1.3% decrease in operating expenses to $6.05 billion in the period compared to a year earlier.

Operating income was $52 million on a GAAP basis.

Charges during the quarter include a $160 million loss from voluntary petitions for reorganisation with the US bankruptcy court from direct and indirect subsidiaries, $116 million in interest charges, $28 million in merger related expenses and $45 million benefits expenses, according to American.

"Thanks to the entire American team, we have made great progress in building the new American," says Tom Horton, chairman, president and chief executive of American-parent AMR, in a statement. "For the first time in six years, we produced a first quarter profit, excluding reorganisation items and special charges, and our fourth consecutive quarterly operating profit."

Passenger revenue per available seat mile (PRASM) was up 2.6% to 13 cents during the quarter versus 2012. Costs per available seat mile excluding special charges were up 1.7%.

Traffic was up 0.6% on a 1.3% decrease in capacity.

American had about $4.25 billion in unrestricted cash and short-term investments at the end of the quarter.

Note: PRASM numbers were updated from the original version of this article.