Quarterly loss of $92 million due to American Airlines exposure
The Brazilian aircraft manufacturer Embraer has posted a net loss of $91.8 million for the fourth quarter of 2011, thanks largely to its exposure to struggling American Airlines. The company’s quarterly revenues rose by 3%, reaching $2 billion, but the loss came after it set aside $366 million to cover possible losses caused by American’s parent company AMR entering bankruptcy protection.
This sum “represents the best estimate available based on the current scenario”, the company said. AMR wants to cut the lease costs it pays on its fleet of 216 Embraer aircraft.
[pictured: Embraer 195; courtesy Embraer]