American parent posts $175 million third quarter profit
AMR Corp., parent company of American Airlines, Wednesday reported net profit of $175 million for the third quarter, compared to a profit of $15 million in the same quarter 2006.
The latest results include the impact of a $40 million charge to reflect an adjustment for additional salary and benefit expense accruals related to years 2003 through 2006 and the first six months of 2007. The year-ago results included a $99 million non-cash charge to reduce the book value of certain outstanding fuel hedge contracts.
AMR’s third quarter operating income improved 12.3 percent to $319 million, from $284 million a year ago. Operating revenue was $5.95 billion, up 1.7 percent from $5.85 billion recorded last year.
Cargo revenue for the three months period was down 8 percent to $196 million.
For the year to date, AMR reported net income of $573 million, up from $214 million in the first nine months of 2006. Operating income increased 18.2 percent to $1.03 billion from $875 million. Operating revenue improved marginally by 0.5 percent to $17.25 billion with cargo revenue down 1.3 percent to $597 million.
American parent posts $175 million third quarter profit
