American Airlines emerged from bankruptcy protection and US Airways culminated its long pursuit of a merger partner as the two completed their deal Monday to create the world’s biggest airline.
American Airlines parent company AMR said that it earned $289 million in the third quarter. That marks a big turnaround from a loss of $238 million a year earlier.
The union representing American Eagle flight attendants says members are worried about their fate if the merger of American Airlines and US Airways goes through.
American Airlines and US Airways said late Tuesday that the government’s opposition to their planned merger shows that it does not understand the airline industry.
Federal officials said that airline employment has dropped from last summer because of job cuts at American Airlines and regional carriers that use smaller planes.
American Airlines said that its July profit doubled to $292 million as it benefited from a busy summer travel season and cost-cutting from its bankruptcy reorganization.
A judge asked American Airlines’ lawyers to explain why he should approve the company’s plan to merge with US Airways and exit bankruptcy protection while the merger is being challenged by the federal government.
The U.S. Justice Department wants to ground the proposed $14 billion dollar merger between Fort
Worth-based American Airlines and US Airways.
The parent of American Airlines is reporting a $220 million profit for the second quarter as its cost-cutting from its bankruptcy reorganization kicked in.
Demand for international travel has boosted traffic and a key revenue measure on American Airlines.
American Airlines expects to add more seats to some of its planes, which could mean less leg room for passengers.
A federal bankruptcy judge has denied a proposed $20 million severance payment for the CEO of American Airlines as part of the company’s merger with US Airways.