Somehow AA managed to post a $10.7 million dollar loss.
They blamed it on higher fuel prices and labor costs.
OK, Fuel ate up $334 million of the extra $785 million they brought in YOY. Labor costs went up $16 million We haven't recieved raises in two years so we know where those increased labor costs didnt go. How much in bonuses were paid to the execs? $6.5 million, so lets say labor costs went up $9.5 million. Most likely all of that went to managemnt as well.
My guess is that maintenance labor costs went down based on the fact that we lost around 500 people off the headcount YOY.(A savings of $32.5 million) I believe that Title 1 is now around 9500.
They brought in $785 more this year than last but fuel ate up $334 million, (785-335=451)
So after fuel and labor and Exec Bonuses they still had $435 more to play with than last year.
Last year they lost $319 million, (435-319=116).
That left $116,000,001 that the company had to burn off in order to show a loss. They burnt off $126.7 million.Where did it go?
Here's some of the things that went up
Net Debt went down but interest expense went up- by $65 million- 18.4% increase
The banks are loving AMR!
"Other" operating expenses went up by $34 million-5.9% increase
(They could have hid the $10.7 million there easlily enough.)
Aircraft Rentals (didnt the fleet shrink?) went up by $19 million- 14.9%
Maint M&R (winglets, new interiors etc)went up by $26 million-8.3%
Other Rentals and Landing fees went up by $14 million-3.9%
Commisions, Booking and Credit Card exp(there go them banks with their hand in the till again)- went up $41 million-19.5%, ok some of that reflects all the increased ticket sales and revenues handled by the credit card companies(ie Banks), the Banks are loving AMR!.
Thats $199 million in increases right there, but as you can see all these expenses went up but the company is only looking at labor costs, which for M&R went down and fuel.
As you can see the banks are seeing huge increases through Interest payments, up 18.4%, Aircraft rentals up 14.9%, , and Credit Card Fees, up 19.5%. All double digit increases yet the airline is only crying about labor! If those costs were flat AA would have showed a $125 million dollar profit!!
Like I've said many times before, dont worry about profits and losses, if the people that own AMR (the Banks) give our executives bonuses for losing money why should you worry and accept less? Anything you give up will simply go back to the Banks, either through higher Lease payments, interest payments, Credit card fees you name it, no matter how much of a loss they show the banks are still loving AMR and laughing every time we accept concessions in order to save AMR!