American Airlines surges back to profit
American Airlines achieved a major financial turnaround in the first quarter of 2013.
The airline’s parent company, AMR Corp, posted a net profit of US$8 million in the first three months of the year, marking its first profitable first quarter since 2007 and a US$256m improvement compared to Q1 2012. The result was driven by surging revenues, which totalled US$6.1 billion for the quarter – 1.0% up year-on-year and the highest first quarter revenue in the company’s history. Passenger traffic climbed 0.6% and average cabin load factors rose 1.5 points to 79.9%.
“For the first time in six years we produced a first quarter profit… and our fourth consecutive quarterly operating profit,” said Tom Horton, AMR’s chairman, president and CEO. “And the momentum is building. We have raised revenues and built a competitive cost structure and sound foundation for the future. We’re investing in hundreds of new aircraft and industry-leading products and have renewed our iconic American brand. Looking forward, our pending merger with our partners at US Airways positions American to be the world’s leading airline. With great work by everyone on the American team, the new American is taking flight.”
Q1 2013 marked a productive period for American. Just over a year since it filed for bankruptcy protection, the airline has unveiled its new branding and confirmed plans to merge with US Airways in a deal that would lead to the creation of the world’s biggest airline group. In January, American Airlines became the first US airline to introduce the Boeing 777-300ER into its fleet – the first aircraft to be adorned with the carrier’s new livery. American now expects to take delivery of 59 new aircraft during 2013.
This week the company filed its bankruptcy exit plan with a New York court.