Go Back  PPRuNe Forums > Flight Deck Forums > Rumours & News
Reload this Page >

American Airline - massive loss

Rumours & News Reporting Points that may affect our jobs or lives as professional pilots. Also, items that may be of interest to professional pilots.

American Airline - massive loss

Old 24th Oct 2001, 16:37
  #1 (permalink)  
Thread Starter
Join Date: Jan 2000
Location: UK
Posts: 955
Likes: 0
Received 0 Likes on 0 Posts
Post American Airline - massive loss

AMR, the parent of the world's largest carrier American Airlines, has reported a $414m net loss in the third quarter, despite a half-billion-dollar bail-out package from the US government after the September attacks.

Even before 11 September, AMR had warned that a slump in business travel due to the US economic slowdown and high fuel prices meant it was likely to post a loss for the 2001 second half and for the full year.

Before special charges of $397m for the attack and a credit of $508m from the US government, AMR's net loss was $525m compared with a net profit of $322m in a year earlier.

American Airlines cut 20,000 jobs in the immediate aftermath of the attacks in an attempt to cut costs.

American losses

The anticipated pre-attack losses worsened as planes flew less than half full immediately after the attacks.

AMR said operating revenues fell to $4.8bn from $5.3bn a year earlier.

Some airlines say traffic is still only about two-thirds of normal.

AMR said every company official had taken a voluntary pay cut, and that its board of directors will take no compensation for the rest of 2001.

American Airlines surpassed United Airlines to become the world's largest airline after AMR acquired TWA in April.

United losses

Meanwhile, officials of United Airlines' parent company will meeting after a letter from chief executive James Goodwin to staff sent the airline's stock plunging.

United officials declined to say whether the board was considering replacing Mr Goodwin, despite widespread industry speculation.

Unions representing United workers have called for his resignation when the company's stock fell more than 20% last week after Goodwin wrote to employees that the airline was haemorrhaging cash and "will perish" sometime if it does not cut its losses.

United, like American, was in deep trouble before the attacks because of a severe downturn in business travel.

Analysts expect United to report a quarterly loss of more than $1bn when it releases third-quarter results on 1 November.
RVR800 is offline  
Old 25th Oct 2001, 05:02
  #2 (permalink)  
Join Date: Aug 1999
Location: Portmeirion
Posts: 37
Likes: 0
Received 0 Likes on 0 Posts

Has anyone heard of saving for a rainy day...seems not.
The Prisoner is offline  
Old 25th Oct 2001, 05:50
  #3 (permalink)  
Join Date: Sep 2000
Location: dallas,tx,usa
Posts: 152
Likes: 0
Received 0 Likes on 0 Posts


Your response about a rainy day is as useful as the convertible hood (roof) on that stupid car they made you drive!

Seriously though, AMR is simply playing the game by painting a "disastrous" picture, tied mainly to the events of Sept 11th. (Heap all the bad news on one big pile so they may move forward unabated when things surely improve.)

Not quite sure how one could have "planned" for a Sep 11th!

Keep your hair dry,

dallas dude is offline  
Old 25th Oct 2001, 06:23
  #4 (permalink)  
Join Date: Aug 1999
Location: New York
Posts: 135
Likes: 0
Received 0 Likes on 0 Posts

They deserve it. Remember what they did to Braniff. What goes around.......
ijp is offline  
Old 25th Oct 2001, 10:49
  #5 (permalink)  
The Guvnor
Posts: n/a

So how come WN manage to 'save for a rainy day' and AA can't? Prudent fiscal management - that's why! That and of course the greed of pilots and management - over the last decade, they could have saved literally billions of dollars with more reasonable packages all round.

Unfortunately, the same applies at pretty much all the majors.
Old 25th Oct 2001, 11:26
  #6 (permalink)  
Join Date: Dec 2000
Location: UK
Posts: 46
Likes: 0
Received 0 Likes on 0 Posts

Didn't take long for you to get back on your favourite subject eh Guv?

I doubt that such a massive loss can be attributed to pilot's pay and conditions!
xsimba is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.