FORT WORTH, Texas, April 16 /PRNewswire-FirstCall/ — AMR Corporation (NYSE: AMR), the parent company of American Airlines, Inc., today reported a net loss of $328 million for the first quarter of 2008, or $1.32 per share.The current quarter results compare to a net profit of $81 million for the first quarter of 2007, or $0.30 per diluted share.Record jet fuel prices contributed significantly to the Company’s loss in the first quarter of 2008. The Company paid $665 million more for fuel in the first quarter of 2008 than it would have paid at prevailing prices from the prior-year period. AMR paid $2.74 per gallon for jet fuel in the first quarter compared to $1.85 a gallon in the first quarter of 2007, a 48 percent increase.
(Full article here)
Damn, the airlines are bleeding!!! Don’t mean to pick on AA here since I’m sure most of the other airlines are bleeding nearly as much, if not more (UA only comes out on 04/22), but it seems like they’re first. I’m sure what’s really going to suck for AA is this quarter, despite the summer travel, due to the fiasco. Consolidation just has to keep happening, I guess, since the high fuel prices don’t seem to be going anywhere. The airlines have to get smarter, faster, better, and stronger.
So what’s the good news here?
Arpey noted that the Company is taking numerous steps to address the challenging circumstances that it faces, including its recent hiring freeze for management and support staff and today’s announcements that AMR is making additional reductions to its 2008 capacity plan and is accelerating the replacement of its MD-80 fleet with more efficient Boeing 737-800s. Arpey also reiterated AMR’s commitment to continue to work with the FAA to demonstrate the Company’s ongoing commitment to safety and compliance with the FAA’s directives.
…and there was much rejoicing. Let’s hope it’s quick and painless, cause those Mad Dogs are getting old and deserve a dignified death!