AMR POSTS LOSS FOR THE FOURTH QUARTER; ORDERS TWO 777-300ER

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By TESTCustomwebLP TESTCustomwebLP January 20, 2011 08:08

AMR POSTS LOSS FOR THE FOURTH QUARTER; ORDERS TWO 777-300ER

American Airlines continues to lose money despite making more revenue from higher fares and money from extra fees. A new strategy aimed at putting more high-dollar business travellers on international flights and trips between a few major US cities could work but the airline will be impacted with rising fuel costs and the ongoing dispute with travel agencies in the US.

Parent company AMR announced a loss of $97 million in the fourth quarter, or 29 cents per share. Revenue grew by 10.3%, to $5.59 billion, both better results than expected. Load factors also improved, with 81.9% of seat filled in 2010 – a record for the airline.

AMR’s other revenue, including baggage fees and food sales, grew 2.9% in the fourth quarter to $599 million but this was still not enough to offset the high cost of fuel.

American has also exercised options for two new long-range 777-300ER aircraft to use on international flights – the first US airline to do so. The aircraft will be used to provide additional capacity in markets that are constrained in terms of airport slots, service frequency or gate access including those servicing Chicago, Dallas/Fort Worth, Los Angeles, Miami and New York JFK.

The two 777-300ERs will be delivered in late 2012.

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By TESTCustomwebLP TESTCustomwebLP January 20, 2011 08:08
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