An American Airlines' plane headed to Dallas takes off from Tulsa International Airport. The airline reported a $292 million profit in July, one of its best monthly showings since it entered bankruptcy. CORY YOUNG / Tulsa World
American Airlines parent AMR Corp. reported a $292 million profit for 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.
Last month's earnings more than doubled AMR's profit from July 2012, and revenues were up by $130 million to $2.48 billion.
"Over the past 20 months, we've been working through a difficult but very successful restructuring," Chairman and CEO Tom Horton wrote in a memo to employees Monday. "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's expenses were down by $19 million from July 2012, but reorganization costs continued to pile up, costing the company $57 million last month.
June and July are usually some of the more profitable months for airlines because planes are packed with summer vacation travelers. But AMR's recent results even outpaced last year, and monthly operating results have generally been improving since 2012.
American has worked aggressively to cut expenses during its bankruptcy, including renegotiating union contracts and shedding employees. The company is also spending $38 billion to renew its fleet with younger aircraft that are more fuel efficient and attractive to business travelers.
American has been releasing the monthly operating reports since it filed bankruptcy on Nov. 29, 2011. The company has about 6,300 employees in Tulsa, mainly at its aircraft overhaul and repair center at Tulsa International Airport.
Fort Worth-based AMR was just weeks away from emerging from bankruptcy this month before an antitrust lawsuit filed by the U.S. Department of Justice halted the proceedings and put a hold on the pending merger with US Airways.
U.S. Bankruptcy Judge Sean Lane will hold a hearing Thursday in New York to consider how the Justice Department lawsuit will impact the bankruptcy plan, which is entirely dependent on the merger with Tempe, Ariz.-based US Airways.
The trial in the antitrust lawsuit could start as early as November, but Justice Department lawyers want until February to prepare.
U.S. District Judge Colleen Kollar-Kotelly in Washington, D.C., is holding a conference Friday with the parties to decide on a date for the antitrust trial.
Kyle Arnold 918-581-8380
kyle.arnold@tulsaworld.com
Original Print Headline: American posts $292M profit
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