American Airlines' parent swings to May profit
American Airlines parent AMR posts $65M profit in May on lower labor and fuel costs
FORT WORTH, Texas (AP) -- Lower labor and fuel costs helped American Airlines' parent company earn $65 million last month, reversing a loss in May 2012.
AMR Corp. CEO Tom Horton said that the company expects "to report a strong, profitable second quarter — our first since 2007." That was stronger language than Horton used last month, when he said that the company was "on our way" to a strong quarterly profit "if current trends continue."
The net income in May compared with a loss of $132 million in the same month last year.
Revenue declined 2 percent, but the Fort Worth company cut expenses by 6 percent. After job cuts, AMR's labor costs fell 19 percent, a savings of $112 million, and fuel expenses dropped 8 percent, or $61 million.
AMR, which is trying to merge with US Airways, reported its monthly results to the federal court in New York that is handling its bankruptcy case. AMR also owns the American Eagle regional airline.
