American Airlines continues its financial nosedive with Q3 loss
The parent company of American Airlines, AMR Corp., has announced a fourth straight quarterly loss of $162 million in Q3, explaining that higher revenues from fare increases and ancillary fees were made irrelevant by a 40% rise in fuel spending. It was the company’s 14th quarterly loss in the last 16 quarters.
AMR earned $143 million during the quarter, a traditionally heavy period with summer travel. Revenues increased by 9% to $6.38 billion. But it spent $2.3 billion on fuel. Laboured by heavy debts and uneconomical planes, it has lost more than $12 billion since 2001, adding to speculation that it may need bankruptcy protection.
Daily Journal Online
[photo courtesy oneworld]