American Posts Profit 3rd Q

[Voltman480]

I was just listening to 106.5 country in Kansas City this morning...they have announced tyhat American has made posted a profit this quarter and that they will most likely keep all three overhaul bases.

I cannot confirm this anywhere else...lets keep our fingers crossed!

 

[operaations]

If this is true let us all stand up and give all of us a big pat on the back. Because with out us American could not have stayed out of BK. I am proud of all of our work groups for standing tall and helping pull this great airline out of the gutter. We still have a long way to go and let us pray we reap the benifits later for sacrificing so much now.

Lets hear it for the employees...lets keep this post positive...we all need it

 

[AAmech]

Well I sure hope its true! But its now 10am Dallas time and I've yet to see anything released!

 

[Andre1980]

I just heard that AA post a small net lost of 23 million before special itiems and breakeven after the special itiems were added. However, I was surprised and happy at the same time. I was surprised that the loss were smaller than what analist estimated it to be but I was very happy about this performance thanks mainly to the employees you all should take a bow because you all were mainly responsible for this dramatic turnaround and despite the challenges ahead at AA I hope things get better for all of you. AALL THE BEST!!!

 

[FA Mikey]

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Press Release Source: AMR Corporation


AMR Corporation Reports Break-Even Results
Wednesday October 22, 11:38 am ET
AMR Posts Third-Quarter Operating Earnings of $165 Million and Net Earnings Of $1 Million
Excluding Special Items, AMR Reports Operating Earnings of $141 Million and A Modest Net Loss Of $23 Million
Airline Ends Quarter With $3.3 Billion In Total Cash And Short-Term Investments
AMR's Four-Point Turnaround Plan On Track in Drive for Sustained Profitability At Acceptable Levels

 

[Mr. Transfer]

Well it's hard to be positive if you still gave up concession and work in STL

 

[FA Mikey]

Even worse if you are on the street. Its a long road back. At least we are headed in the right direction. Some furloughs are coming back. Lots of cash on hand. Credit markets open to us. Continued expansion, and growth. Future looks bright.

 

[AAmech]

Well, I would'nt exactly say "Bright", but at least we're seeing some light at the end of this miserable tunnel! B)

 

[NewHampshire Black Bears]

If this is true let us all stand up and give all of us a big pat on the back. Because with out us American could not have stayed out of BK. I am proud of all of our work groups for standing tall and helping pull this great airline out of the gutter. We still have a long way to go and let us pray we reap the benifits later for sacrificing so much now.

Lets hear it for the employees...lets keep this post positive...we all need it.

operations,
Explain to us, if you can, how can we be positive, when a day set aside to honor DEAD servicemen and women(MEMORIAL DAY) is not "deemed"(by the AS* HOLES of AA management) to be a holiday ??????????????????

I'm not talking good friday, columbus day, presidents day, or the friday after thanksgiving here, but "MEMORIAL DAY"

I ANXIOUSLY AWAIT YOUR REPLY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NH/BB's

 

[RV4]

STRANGE!

Now they have $3.3 BILLION in cash????


AMR Reports Break-Even 3Q Results

AMR Posts Third-Quarter Operating Earnings
Of $165 Million And Net Earnings Of $1 Million

Excluding Special Items, AMR Reports Operating Earnings
Of $141 Million And A Modest Net Loss Of $23 Million

Airline Ends Quarter With $3.3 Billion In Total Cash And Short-Term Investments

AMR's Four-Point Turnaround Plan On Track
In Drive For Sustained Profitability At Acceptable Levels

Continuing to build financial momentum, AMR Corporation, the parent company of American Airlines, Inc., today reported operating earnings of $165 million and net earnings of $1 million for the third quarter. In last year's third quarter, AMR reported an operating loss of $1.3 billion and a net loss of $924 million, or $5.93 per share.

Both this year's quarter and last year's third quarter included special items - both gains and losses - resulting mostly from the company's restructuring efforts. In addition, in keeping with the provisions of SFAS 109, AMR's third quarter 2003 results do not reflect a provision for federal and state income taxes.

Conversely, AMR's third quarter 2002 results reflected a tax benefit. To provide a better comparison between the two periods, after adjusting for these special items and taxes, the company recorded a loss of $23 million this quarter, or $0.15 per share, versus a loss of $741 million, or $4.76 per share, in the third quarter of last year.

"We are making good progress under the focus and discipline of our four-point Turnaround Plan," said Gerard Arpey, AMR's president and CEO. "Nevertheless, the third quarter is a peak season for the airline industry, and under normal circumstances, we should be doing much better at this time of year than simply breaking even. We have a lot of work to do to achieve sustained profitability at acceptable levels, but we are clearly on the right track.

"When you look at everything we have had to overcome and compare our results in the third quarter with the huge losses in the same period last year," Arpey said, "the progress is very gratifying. Our third quarter performance is unmistakable evidence that we are building critical momentum on the cost side of the business and that those improvements, coupled with other aspects of the Turnaround Plan, are beginning to produce significant financial results.

"Most especially, AMR has been aided over the past several months by the sacrifices and hard work of our employees, who have rallied behind the Pull Together, Win Together tenet of the Turnaround Plan to help us overcome our financial crisis and take good care of our customers under some very challenging circumstances," Arpey said.

Third quarter highlights included:
An 8.1 percent increase in American's mainline unit revenues, reflecting record load factors in July and August.
An 8.6 percent decrease in American's mainline unit costs (excluding special items), despite a 6.3 percent drop in capacity and higher fuel prices.

A strong Sept. 30 cash and short-term investment balance of $3.3 billion (including $540 million in restricted cash and short-term investments), more than double the low of $1.6 billion last April.

Improved access to the capital markets, underscored by a $300 million convertible debt transaction closed in September.

Cash contributions of $173 million to the company's pension plans, bringing the year's total pension contributions to more than $300 million.

One of the biggest challenges facing AMR, Arpey said, is an uncertain revenue environment. There was an encouraging year-over-year increase in quarterly yield, the first such increase since the first quarter of 2001. American's third quarter yield was 11.63 cents, up 2.5 percent from a yield of 11.35 cents in the same period a year ago. But overall, the revenue environment is disappointing, Arpey said, and is negating much of the progress being made in lowering AMR's costs. This, he said, makes all the more important the cost principles of AMR's Turnaround Plan, aimed at lowering the company's costs so it can compete effectively in an industry marked by ever-expanding low-cost competition.

Still, Arpey said, AMR remains confident as it continues to implement initiatives throughout this year and in 2004 that should have a positive effect on the company's financial performance. For example:
In 2004, American will benefit for the entire year from the revenueand cost improvements associated with the realignment of its mid-continent hubs at Chicago, Dallas/Fort Worth and St. Louis.

American has just begun adding back coach seats on its Boeing757 and Airbus A300 fleets, both of which will be assigned topredominantly leisure markets. These steps, and the reconfiguration of its Boeing 767-300s and 737-800s, should increase American's passenger revenue in 2004.

The recent launch of American's codeshare service with British Airways
and the addition of SWISS International to the oneworld alliance will expand American's network and revenue opportunities in the fourth quarter and beyond.

American today announced an understanding with Kansas City andthe state of Missouri that retains portions of AA's Kansas City maintenance base and completes plans for the more efficient allocation of work among the airline's three maintenance bases, giving the company $100 million in incentives from the base communities and on-going operating efficiencies.

American's position is enhanced by the focused efforts of its employees as they pull together and win together, sharing in the value they help create through the 38 million employee stock options issued earlier this year.

Continued implementation of AMR's $2 billion in strategic initiatives. These include completing the simplification of AMR's fleet from 14 to 6 aircraft types when the last F-100 is retired in September, and rolling out more self-service alternatives for customers at airports and on-line.
A recent partnership with American Express to issue a co-branded American Express Business ExtrAA Corporate Card that offers rebates and rewards, at the corporate level, for air travel spending on American.

Continued emphasis on customer service was recognized at the 10th Annual World Travel Awards, where American was named North America's Leading Airline for the sixth straight year and also won for World's Leading Economy Class and World's Leading Airline Internet Site.

"These and other steps will give us added financial impetus in 2004 that we will use to build on the momentum we are gathering this year," Arpey said. "We have begun a recovery process that should be helped substantially in 2004 by many of the initiatives now underway."

 

[Andre1980]

I have noticed that investers did not take this news too well since the stock is down and I am wondering what was wrong? Probably it was not the results they were looking for. But I think AA is making a good move in the right direction and this is only the begining of a very long journey to long term financial stability in this new enviroment that they must adapt to. Now about the 3.3 billion in cash and how that was raised. When we look at the results AA has breakeven and on top of that AA has recently raised cash by issuing bonds (I think). Therefore AA would be confortable during the low winter period until demand picks up again in the second quater of 2004. I hope this great news boosts moral and to show employees that there concessions were indeed worth it.

 

[WingNaPrayer]

I have noticed that investers did not take this news too well since the stock is down and I am wondering what was wrong?

Investors aren't stupid - the scuttlebutt remains that this will cause a rift with the employees, therefore further investment isn't warranted, at least until the middle of Q4. After AMR's release of Q3 results, the stock dropped, in fact, nearly 10 percent.

Now about the 3.3 billion in cash and how that was raised. When we look at the results AA has breakeven and on top of that AA has recently raised cash by issuing bonds (I think).

Nope, they backed off on that idea. Therein lies the anticipated rumblings from the employees that investors will be watching for.

AMR reports the following finances, in short:

An 8.1 percent increase in American's mainline unit revenues, reflecting record load factors in July and August.

An 8.6 percent decrease in American's mainline unit costs (excluding special items), despite a 6.3 percent drop in capacity and higher fuel prices.

A strong Sept. 30 cash and short-term investment balance of $3.3 billion (including $540 million in restricted cash and short-term investments), more than double the low of $1.6 billion last April.

Improved access to the capital markets, underscored by a $300 million convertible debt transaction closed in September.

Cash contributions of $173 million to the company's pension plans, bringing the year's total pension contributions to more than $300 million.

Kansas City and the state of Missouri that retains portions of AA's Kansas City maint- enance base and completes plans for the more efficient allocation of work among the airline's three maintenance bases, giving the company $100 million in incentives from the base communities and on-going operating efficiencies.

That's just "some" of the items listen in AMR's Q3 8K report issued to the SEC today.

You can read the entire 8K release on line AMR Q3 8K Report to the SEC

 

[Andre1980]

WingNaprayer not only was AA's stock down so were the rest of the airlines and I expect the DOW to close lower today and what rumblings are you talking about? I know the employee to management relationship is not the best but it is not as bad as it seems.

 

[operaations]

operations,
Explain to us, if you can, how can we be positive, when a day set aside to honor DEAD servicemen and women(MEMORIAL DAY) is not "deemed"(by the AS* HOLES of AA management) to be a holiday ??????????????????

I'm not talking good friday, columbus day, presidents day, or the friday after thanksgiving here, but "MEMORIAL DAY"

I ANXIOUSLY AWAIT YOUR REPLY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NH/BB's

Here is my reply. I have a positive new attitude on life and do not need to take on more stress. Nothing can ruin that positive press release. I just hope one day your attitude will change tro a more positive and productive one. You will live longer and be more liked by everyone around you. I wish you the best and your family as well. Even you deserve a thank you for the concessions...Stand up and be proud you helped something get better. You deserve it

 

[wrx]

Because with out us American could not have stayed out of BK. I am proud of all of our work groups for standing tall and helping pull this great airline out of the gutter.

Please do explain to us how we can be positive after AA screwed us royally! The flight attendants voted NO and that vote should stand! The people who voted yes, just got suckered into believing AA would file BK. Remember AA said they would furlough 5,000 flight attendants if they filed BK. If they got concessions, they would only cut around 1,000 or so. Hmm, they cut 3,150 of our co-workers on July 1, 2003, with concessions. But, they executives still have their BIG PAYCHECKS and you know damn well their pensions are safe too.

AA is run by a bunch of liars and cheats!