News Column

American Airlines reports $2 billion fourth quarter loss

January 28, 2014

By Kyle Arnold, Tulsa World, Okla.

Jan. 28 --The new American Airlines reported a $2.0 billion loss in the fourth quarter on $2.4 billion in special charges related to the merger with US Airways . The Fort Worth -based airline said combined revenues at the two airlines increased to $10.0 billion in the fourth quarter, an 8.7 percent increase over the last quarter of 2012. That happened while the companies increased passenger revenue per available seat mile to 13.64 cents , a 5 percent increase. But the company's Dec. 9 merger weighed heavily on the earnings for the quarter, and subsequently for the year. The results only include US Airways accounting from after the merger on Dec. 9 to the end of 2013. The company finished the year with a $1.8 billion net loss, which included $3.1 billion in special charges. "The early returns on our merger are very positive," said Doug Parker , CEO of American Airlines Group Inc. in a statement Tuesday "Our teams are working well together and our customers are already beginning to see the benefits of our combined network. We have much work ahead, but believe we are on our way to restoring American as the greatest airline in the world. These financial results are evidence of the strong foundation we have in place and we anticipate improving upon these results as we further integrate our operations in 2014." US Airways and American Airlines opted to combine their operating statements for the fourth quarter. American Airlines , formerly AMR Corp. had earned $216 million in profit through the first three quarters of the year. American Airlines has about 6,300 employees in Tulsa , mostly at the company's primary maintenance and overhaul facility near Tulsa International Airport . ___ (c)2014 Tulsa World (Tulsa, Okla.) Visit Tulsa World (Tulsa, Okla.) at Distributed by MCT Information Services

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Source: Tulsa World (OK)

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