AMR Corp. pulls third straight monthly profit in July
By KYLE ARNOLD World Business Writer on Aug 26, 2013, at 9:41 AM
American Airlines
Some travelers will encounter the most tangible evidence of the reboot of American Airlines on Monday when the airline begins flying its first Airbus A319 jets.
The American Airlines bankruptcy judge issued a written opinion Friday stating that he took the financial sacrifices made by union members into account when rejecting a $20 million severance deal for CEO Tom Horton.
American Airlines parent AMR Corp. earned a $292 million profit in July, one of the carrier’s best months since entering bankruptcy.
Now the company has pulled a profit for three straights months after losing billions over the last decade.
The $292 million gain for the month more than doubled AMR’s profit from July 2012 and revenues were up by $130 million over the same period to $2.48 billion.
“Over the past twenty months, we’ve been working through a difficult but very successful restructuring,” said AMR Corp. chairman and CEO Tom Horton. “Along the way, there were new routes to launch, products to introduce and dozens of new aircraft to bring into the system. There were tough days and good days, and there were plenty of days when our destination on this journey seemed very far away.”
AMR also cut expenses during the month by $19 million compared to July 2012, but reorganization costs continue to pile up, costing the company $57 million in the month.
AMR Corp. was just weeks away from emerging from bankruptcy this month before an antitrust lawsuit from the USJustice Department halted the proceedings and put a hold on the pending merger with US Airways.
Bankruptcy Judge Sean Lanewill hold a hearing Thursday to consider how the Justice Department lawsuit will impact the bankruptcy plan.
The trial in the antitrust lawsuit could start as early as November, but Justice Department lawyers want until February to prepare.
American Airlines
Some travelers will encounter the most tangible evidence of the reboot of American Airlines on Monday when the airline begins flying its first Airbus A319 jets.
The American Airlines bankruptcy judge issued a written opinion Friday stating that he took the financial sacrifices made by union members into account when rejecting a $20 million severance deal for CEO Tom Horton.
