AMR’s troubles continue, loses $436 million in the 1Q

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc., reported a net loss of $436 million for the first quarter of 2011, or $1.31 per share. The first quarter 2011 results include the impact of approximately $31 million in one-time non-cash charges related to certain sale/leaseback transactions. Excluding this special item, the Company incurred a loss of $405 million for the first quarter of 2011, or $1.21 per share.

The results for the first quarter 2011 compare to a net loss of $505 million, or $1.52 per share, in the first quarter 2010. The first quarter 2010 results included a $53 million, or $0.16 per share, special item related to the devaluation of the Venezuelan currency. Excluding that special item, AMR’s loss was $452 million, or $1.36 per share, in the first quarter of 2010.

American announced it plans to reduce its fourth quarter 2011 system capacity by an incremental 1 percent. This cut is in addition to the capacity reduction already announced by American in March and further demonstrates the flexibility provided by its DC-9-82/83 (MD-80) fleet. American now intends to retire at least 25 DC-9-82/83s (MD-80s) in 2011, as part of the company’s plan to continue renewing its fleet, while addressing the current fuel environment.

As part of the Company’s fleet renewal efforts, American Airlines now has five 777-300 ERs that are scheduled for delivery in 2012 and 2013, including two additional aircraft for which options were recently exercised. These 777-300 ERs will complement American’s fleet, offering additional network flexibility in the future, and providing increased efficiency due to better seat mile economics and performance characteristics.

Copyright Photo: Bruce Drum.

American Slide Show: CLICK HERE