American's second quarter loss widens year-over-year

Washington DC
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AMR Corporation, parent of American Airlines reported a $286 million net loss for the second quarter, a significant increase from an $11 million loss during the same period in 2010.

The company cited high fuel prices as part of the reason for the loss, noting that its average fuel price for the quarter increased significantly. AMR said it "paid $524 million more for fuel in the second quarter 2011 than it would have paid at prevailing prices from the corresponding prior-year period".

Meanwhile, mainline passenger revenue per available seat mile (PRASM) rose 4.9% year-over-year. Yields increased 4.6% while load factor dropped 0.3 percentage points to 83.6%.

AMR also said that mainline unit costs excluding fuel rose 1.4% compared to the second quarter of last year. The company said that this increase "reflects the impact of American's cost reduction efforts, offset by weather-related operational disruptions and the previously announced capacity reductions".

During the quarter, mainline traffic at American increased 1.8%, while capacity grew 2.1%.