The parent company of American Airlines, AMR Corp., finished the first quarter with its first net profit in six years.
The result, a net profit of $8 million, shows a growth of $256 million, year over year.
First-quarter revenue came in at $6.1 billion, which officials said is the highest in the company’s history. Operating profit rose by $203 million, year over year, which is good for the company’s fourth consecutive quarter of profitability.
These results were primarily fueled by passenger activity, as cargo revenues took an 8-percent dive to $155 million during the first quarter. Cargo ton miles declined by 7.8 percent year over year during the same time frame and cargo revenue yield fell by $0.08 per mile.
AMR took a $349 million hit due to reorganization costs, but the reorganization has put the company on track to realize even more savings. The reorganization, AMR Chairman Tom Horton said is one of the reasons AMR’s financial results will only show more improvement moving forward.
“The momentum is building,” he said in a statement. “We have raised revenues and built a competitive cost structure and sound foundation for the future. We're investing in hundreds of new aircraft and industry-leading products and have renewed our iconic American brand.”
According to officials, the majority of American’s restructuring is now complete; debt has been reduced, aircraft leases have been renegotiated, and outdated members of the fleet have been retired. Salaries, benefits and non-operating expenses have also been reduced as part of the process. AMR's leadership is still waiting on court approval of new vendor and supplier terms, but when that happens, cost savings will be even greater.
The merger between American and US Airways, which was announced on Feb. 14, is still in the approval process. American representatives hope to sew up the deal in the third quarter of this year. - Jon Ross