Bullshit! - It isn't hurting the consumer so how come the airlines are cryin'?
AMR swings to a fourth-quarter loss
Record high fuel prices took a $412 million bite out of earnings
By Christopher Hinton, MarketWatch
Last update: 4:03 p.m. EST Jan. 16, 2008
NEW YORK (MarketWatch) -- AMR Corp., parent of American Airlines, swung to a fourth-quarter because of skyrocketing fuel prices and a greater number of flight cancellations due to bad weather.
The Fort Worth, Texas, carrier reported on Wednesday a loss of $69 million, or 28 cents a share, compared with profit of $17 million, or 7 cents, in the year-earlier period.
Chart of AMR
Excluding about $115 million in one-time benefits, AMR would have reported a loss of 74 cents a share in the most recent quarter. Analysts polled by Thomson Financial expected a loss of 75 cents a share.
"While record fuel prices contributed significantly to our fourth-quarter loss -- our first quarterly loss after six straight profitable quarters -- they are a reminder of the challenges we must continue to overcome as we strive for consistent and adequate profitability," Chief Executive Gerard Arpey.
American Airlines' mainline cost per available seat mile, excluding special items, jumped 8.6% from a year earlier because of higher fuel costs. Altogether, fuel expenses were $412 million higher in the quarter than they were in the previous year's period.
Sales in the fourth quarter rose 4.6% to $5.6 billion. Analysts expected sales of $5.69 billion.
AMR shares rose 3.2% to close at $13.62. The stock has been under pressure in the past year, falling more than 65% since last January.
Like many carriers, AMR has been slammed with higher fuel costs, generally the single largest expense for any airline. Operators have been raising fares and fuel surcharges when possible, but a recent surcharge increase to $25 each way failed.
AMR is the first of the so-called legacy carriers to report its fourth-quarter results.
Continental Airlines (CAL) reports its earnings on Friday; Delta Air Lines (DAL) reports on Monday; United Airlines parent UAL Corp. (UAUA) reports Tuesday; U.S. Airways (LCC) reports Jan. 24; and Northwest Airlines (NWA) reports on Jan. 29. End of Story |
