AMR Corporation (PINK:AAMRQ) (NYSE:AAR), the parent company of American Airlines, posted $262 million net profit for the fourth quarter of 2012, compared with losses of $1.1 billion during the same period a year earlier. According to the company, the positive result was achieved due to cost-cutting measures from its bankruptcy reorganization.
In a statement, Tom Horton, chairman and CEO of AMR Corporation (PINK:AAMRQ) (NYSE:AAR) said, "It is remarkable what the American team has been able to accomplish, including generating record revenue and a return to an operating profit for the year while restructuring every aspect of our company. Our momentum is growing toward emerging as a strong, healthy and vibrant competitor. In fact, with what we have accomplished, we expect to show strong results beginning in the first quarter of 2013."
The company said its revenue for the fourth quarter was $5.9 billion, 0.3% lower than its revenue last year due to the negative impacts of hurricane Sandy, the snowstorm in the Northeast last November and booking headwinds from earlier operational disruptions.
AMR Corporation (PINK:AAMRQ) (NYSE:AAR) said its full year 2012 consolidated revenue was $24.9 billion, a 3.7 percent increase from 2011. According to the company, its current revenue was the highest in the history of the company.
In terms of passenger revenue per available seat mile (PRASM), both consolidated and mainline increased by 5.8% and 5.6% year-over-year, respectively. According to AMR Corporation, its international PRASM jumped by 5.7% due to improved yield performance across all entities. AMR Chief Commercial Officer, Virasb Vahidi said, "We are enhancing relationships with the best international alliance partners and creating a pipeline of industry-leading products and services, including a significant renewal and transformation of our fleet that will drive revenue performance in the coming years."
In 2012, the company said a majority of its financial restructuring was completed including debt reduction, renegotiating of aircraft leases, facilities agreement, and supplier relationship, grounding older planes, and rationalizing regional fleets.
According to Bella Goren, chief financial officer of AMR Corporation (PINK:AAMRQ) (NYSE:AAR), the company executed all aspects of its business strategy and steps to build a strong financial foundation to be able to deliver strong returns to stakeholders.
AMR Corporation (PINK:AAMRQ) (NYSE:AAR) ended the quarter with approximately $4.7 billion cash and short-term investments, including $850 million restricted balance. The company is expecting the delivery of its 59 new mainline aircrafts this year.
The shares of the company were up by more than 4 percent to $1.55 per share at the time of writing.