American Airlines sees first full-year profit since 2000
AFP wire story:
Quote:
American Airlines sees first full-year profit since 2000
Jan 17 10:01 AM US/Eastern
AMR Corp., parent of American Airlines, announced its first full-year profit since before the terror attacks of 2001, in a sign of recovery for the battered airline industry.
American, the largest US carrier, posted a net profit of 17 million dollars for the fourth quarter of 2006, compared with a loss of 600 million dollars in the same period a year earlier.
For all of 2006, AMR posted a 231-million-dollar net profit, following a net loss of 857 million in 2005, the last of five straight years of losses
"By producing a fourth quarter and full year profit for the first time since 2000, the people of American Airlines made 2006 a proud milestone in our ongoing turnaround," said AMR chairman and chief executive Gerard Arpey.
"We executed on every facet of our turnaround plan -- from bolstering our financial and competitive positions to investing in our product and strengthening our employee pension plans.
"With the combined effort of the entire American Airlines team, we expect to build on our momentum in 2007."
American and other major US carriers have been emerging from the industry's worst-ever slump on the heels of the September 11, 2001 attacks, the subsequent slump in air travel and surging fuel prices. Four of the top six US carriers have been in bankruptcy protection.
The fourth-quarter profit for AMR amounted to seven cents per share, much better than the average Wall Street forecast of a loss of seven cents per share.
AMR reported fourth quarter revenues of 5.4 billion dollars, an increase of 4.4 percent year-over-year. Full-year 2006 revenues totaled 22.6 billion, an 8.9 percent increase over 2005.
