American Airlines Posts Record Breaking Second Quarter Profits
AMR Corporation, the parent company of American Airlines, Inc., has reported a second quarter GAAP net profit of $220 million, a $461 million improvement compared to the prior-year period. Excluding reorganization and special items, second quarter 2013 net profit was $357 million, a $262 million improvement compared to the prior-year period.
AMR said that the record setting quarterly result was bolstered by a June during which the company recorded its best monthly profit, excluding reorganization and special items, in its history. In the quarter, AMR had $137 million of reorganization and special items.
In releasing their second quarter results, American’s current chairman and CEO Tom Horton said that “the momentum is building as we plan for the impending merger with US Airways.” Horton is confident that U.S. regulatory agencies will approve the merger which some critics have said would lessen competition and ultimately be detrimental to consumers.
Virasb Vahidi, American’s chief commercial officer pointed to the fact that “this quarter’s results are solid evidence that our customers continue to respond positively to improvements in our network, renewal of our fleet and American’s ongoing introduction of industry-leading amenities.”
“Merger milestones” such as the U.S. Bankruptcy court approving the merger subject to reorganization and the approval of the merger by US Airways shareholders were cited.
“Our teams are keenly focused on developing and implementing a plan to ensure a good result for our customers when we come together as one company,” said Beverly Goulet, American’s Chief Integration Officer. “Bringing together two airlines is complex work, but our teams are working exceptionally well together toward building the world's leading airline.”
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