AMR sees strong revenue trends for 2011

[Veritas]

AMR sees strong revenue trends for 2011

DALLAS – The parent of American Airlines says business travel is still picking up and the company feels good about its revenue-making power heading into next year.

The chief financial officer of AMR Corp. adds that fares are rising, especially on international flights.

CFO Bella Goren told an investors conference Tuesday that the company is wary about higher fuel prices. Fuel and labor costs are the two biggest expenses for airlines.

Goren says AMR is encouraged that there seem to be fewer fare sales, and she says American's passenger revenue per mile in the fourth quarter should come in about 7 percent higher than a year ago.

She says advanced bookings are even or a bit stronger than at this time last year.

 

[odie01]

AMR sees strong revenue trends for 2011

That's good news, time to settle some contracts with the people who saved them from bankruptcy, enabled them to pay down their debt with their so called losses, and buy more planes. If we are losing money, Bernie Made-off is running this airline from cell block "H".

 

[FrequentFlierCA]

I just hope higher fuel prices don't end up negating a stronger revenue environment. Oil has a way of soaking up airline cash like nothing else.

 

[odie01]

I just hope higher fuel prices don't end up negating a stronger revenue environment. Oil has a way of soaking up airline cash like nothing else.

Always has and always will .. What's the magic hedge number though?

 

[FrequentFlierCA]

I don't know about the magic number, but I'd sure love to own futures contracts with a strike price of $30 right now. 😀

 

[Hopeful]

I just hope higher fuel prices don't end up negating a stronger revenue environment. Oil has a way of soaking up airline cash like nothing else.

Gee and all along I thought it was labor costs!