American Airlines parent AMR has reported a net loss of $11 million for the second quarter of 2010, compared with a net loss of $390 million for the same period last year.
"Though increased fuel prices added dramatically to our expenses this quarter, we made substantial progress improving our financial performance comparatively, both year-over-year and in sequential quarters," says American CEO Gerard Arpey.
The company posted a 16% rise in revenue to $5.7 billion. Operating costs increased by 7% to about $5.5 billion. As a result, AMR generated a $196 million operating profit for the quarter, compared to a $226 million operating loss for the second quarter of 2009.
Consolidated passenger revenue per available seat mile increased 16.7% while mainline PRASM grew 16.8%. Mainline capacity declined 0.4%.
AMR has estimated a 0.9% rise in its full-year mainline capacity for 2010 compared with 2009 levels. On a consolidated basis, AMR predicts capacity to rise by 1.2% this year.
"As we move forward, we remain focused on our primary goals of driving revenue growth, controlling costs, and returning to sustained profitability," Arpey says. "Our plan to achieve these objectives is distinguished by our cornerstone network strategy, the ongoing implementation of our planned joint business agreements in the trans-Atlantic and trans-Pacific markets, additional alliance and network activities, and our ongoing fleet renewal efforts."