American Airlines Announces Second Quarter Profit

AMR, American Airlines’ parent company, which is nearing its merger with US Airways, announced a profit of $220 million for the second quarter of 2013.

It was just the first time the business has had a net profit during a second quarter in six years.

The profit arrives at a time when the airline is preparing the final stages of its merger with US Airway that will make the new combined carrier the worlds largest.

Tom Horton the CEO of AMR said the airline had delivered the best second quarter financial performance, excluding any special items, in the history of the company.

American had to file for bankruptcy protection back in November of 2011, and some Wall Street analysts said the profit it earned for the second quarter was unimpressive when comparing it with numbers from other carriers and largely was the result of slashes in labor costs.

Analysts called the revenue growth for the second quarter anemic and below average compared to its peers. Other said that the sooner the merger is completed the better for American.

Last week shareholders of US Airways approved the pending merger. Now only creditors for AMR, the American parent company must approve the airlines plan for reorganization. That voting is expected to conclude before the end of July.

If the creditors of American give approval, the bankruptcy court will be next to review it. A hearing in bankruptcy court is scheduled to take place on August 15. Then the U.S. Justice Department would need to give its seal of approval for the merger, if it determines the new larger airline would not violate existing antitrust laws.

Latest News

Instacart the Grocery Delivery Startup Raises $210 Million
Instacart the Grocery Delivery Startup Raises $210 Million
China Will Relax Regulations on Banks Renminbi Trading
China Will Relax Regulations on Banks Renminbi Trading
Subway in Safety Scandal in China over Food
Subway in Safety Scandal in China over Food
UPS and FedEx Make Improvements During Holiday Season
UPS and FedEx Make Improvements During Holiday Season
MasterCard Spending Report for Holidays Shows Weak Electronics
MasterCard Spending Report for Holidays Shows Weak Electronics
Gift Cards Have Become Hugely Popular, but Have Risks
Gift Cards Have Become Hugely Popular, but Have Risks


Leave a Reply

Advertisement
Advertisement
© 2006-2015 Leoncheng.