American Airlines July Profit Doubles
FORT WORTH (AP) – The parent of American Airlines said its July profit more than doubled to $292 million as it benefited from a busy summer travel season and cost-cutting from its bankruptcy reorganization.
Revenue for AMR Corp. rose almost 7 percent to $2.48 billion.
A year ago it had earned $135 million.
Labor expenses fell 12 percent to $523 million. Fuel expenses rose 2 percent to $737 million.
The company paid $57 million in reorganization expenses, up by $3 million from July 2012. AMR, American, and its American Eagle regional airline unit filed for bankruptcy protection in November 2011.
“We are completing one of the most successful turnarounds in aviation history,” CEO Tom Horton said in a letter to employees. “We are building a strong, competitive and profitable new American poised to lead again.”
American has been aiming to exit bankruptcy protection in a merger with US Airways Group Inc. in a merger they hopes would close before the end of next month. But the Justice Department sued to block the deal, saying it would harm competition. The airlines have asked for a Nov. 12 trial. The Justice Department says the trial should begin no sooner than Feb. 10.
“We’re ready to make our case in court for the merger’s significant benefits to all of our stakeholders and the communities we serve,” Horton wrote.
AMR ended July with $5.8 billion in unrestricted cash and short-term investments, up by $1 billion from a year earlier.
(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
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