FOR RELEASE: Wednesday, Oct. 20, 2010
Editor's Note: A live Webcast reporting third quarter results will be broadcast on the Internet on Oct. 20 at 2 p.m. EDT (Windows Media Player required for viewing)
AMR CORPORATION REPORTS THIRD QUARTER PROFIT OF $143 MILLION
Substantial ImprovementCompared to Last Year, Despite Higher Fuel Prices Recent Highlights Include: Launched Joint Business with British Airways and Iberia Received Tentative DOT Approval for Antitrust Immunity with Japan Airlines Enhancing Strategic Position in Los Angeles FORT WORTH, Texas – AMR Corporation, the parent company of American Airlines, Inc., today reported a net profit of $143 million for the thirdquarter of 2010, or $0.39 per diluted share. The current quarter results compare to a net loss of $359 million for the third quarter 2009, or $1.26 per share, which included the impact of approximately $94 million in nonrecurring charges related to the sale of certain aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Excluding those non-recurring charges, the thirdquarter 2009 loss was $265 million, or $0.93 per share. “We are pleased to report our first profitable quarter, excluding special items, since the third quarter of 2007, ” said AMR Chairman and CEO Gerard Arpey. “Our entire team is intensely focused on building strong momentum from our cornerstone, partnership and alliance strategies that enhance our global network reach. We are excited about ourrecently launched Joint Business in the trans-Atlantic with British Airways and Iberia and the forthcoming opportunity with Japan Airlines in the Pacific, as well as additional network enhancements in key
AMR Reports Third Quarter 2010 Results Oct. 20, 2010 Page 2 markets. While there is clearly much more work to do, our results show significant improvement in revenue and reflectour continued dedication to controlling costs.” Arpey also highlighted several recent developments that demonstrate the Company’s progress in executing on its strategic initiatives under Flight Plan 2020. Joint Business with British Airways and Iberia American Airlines, British Airways and Iberia launched their Joint Business between North America and Europe on Oct. 1. The American, BritishAirways and Iberia trans-Atlantic business, initially representing approximately $7 billion in combined revenue between the carriers, will offer seamless service to 433 destinations in 105 countries, with 5,178 daily departures worldwide. As part of enhancing the new Joint Business, American, British Airways and Iberia announced service to four new key routes, beginning spring 2011. They are: New YorkJFKBudapest and Chicago-Helsinki (operated by American Airlines), London Heathrow-San Diego (operated by British Airways) and Madrid-Los Angeles (operated by Iberia). Also in spring 2011, American will add additional frequencies from JFK to Barcelona and Miami to Madrid. Recall of Approximately 800 Furloughed Employees American announced in early October that it is sending recall notices to 545flight attendants and 250 pilots. Several factors contributed to the company’s ability to recall, primarily its efforts to capitalize on new international flying and business opportunities with British Airways and Iberia, continuing to strengthen its cornerstone hubs, preparing for its pending alliance with Japan Airlines, and its current staffing needs. Tentative DOT Approval for AntitrustImmunity with Japan Airlines Also since the close of the third quarter, American Airlines and Japan Airlines received tentative approval of the antitrust immunity application filed by the two airlines in February. By this action, the Department of Transportation has moved another step closer to granting antitrust immunity to the two airlines. Under an immunized agreement, the two airlines anticipate...