AMR Corp posts Q3 net loss.
AMR Corporation (NYSE: AMR), the parent company of American Airlines Inc, has reported a net loss of USD153m for the third quarter of 2005.
According to the airline, the loss includes a net USD58m negative impact of two special items, an USD80m charge for a contract termination and a USD22m credit for the reversal of an insurance reserve.
Without these special items, AMR would reportedly have recorded a net loss of USD95m, or USD0.58 per share. The results compare to a net loss of USD214m in Q3 last year.
Hurricanes Katrina and Rita, in addition to driving fuel costs significantly higher, adversely impacted results by temporarily reducing air travel, disrupting airline operations and increasing other costs.
American Airlines' revenue performance during Q3 was marked by record high load factors and significantly improved yields. The mainline load factor, or percentage of total seats filled, was 81.2%, an increase of 3.3 points year-over-year. During the third quarter the airline paid USD525m more for fuel than it would have paid at last year's fuel prices and USD204m more than it would have paid using the average price from Q2.
The airline also said that, looking forward, it expects to post - at the current level of fuel prices - a significant loss in Q4 2005.
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|Publication:||Airline Industry Information|
|Article Type:||Brief Article|
|Date:||Oct 20, 2005|
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