AMR Corporation (PINK:AAMRQ) reported $110 million net profit during the third quarter, excluding reorganization related costs, as the company generated more passenger revenue from every seat flown per mile. AMR posted $6.4 billion consolidated revenue during the period, 0.8 percent higher than its revenue during the same period in 2011.
The parent company of American Airlines posted $51 million operating income and incurred $ 238 million net loss, or 71 cents per share, including $348 million in restructuring and other expenditures. Prior to its Chapter 11 bankruptcy protection filing in November last year, the company reported $162 million net loss or 48 cents per share.
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AMR’s consolidated passenger revenue per available seat-mile increased by 4.3 percent, while its mainline passenger unit revenue rose by 4.5 percent. The average fares paid by passengers increased by 3.5 percent year-over-year, and the mainline passenger yield grew by 3.7 percent.
In a statement, Tom Horton, chief executive officer of AMR Corporation (PINK:AAMRQ) said, “These results were driven by the best unit revenue growth in the industry in each month of the quarter, and by record load factor, as we continue to make progress in our restructuring for a successful future.”
In addition, the company’s chief commercial officer, Virasb Vahidi, said, “Strong yield and record load factors generated unit revenue growth that topped the industry in each of the three months, continuing a trend of outperforming the industry that we’ve seen throughout the year. We saw unit revenue increases across all five of our hubs and across all international entities.”
According to the company, the load factor of the average number of seats filled per plane on American Airlines increased by 6 percent, to 85.5 percent. AMR said its high consolidated load factor drove the improvement of the company’s revenue year-over-year.
Bella Goren, chief financial officer of AMR Corporation (PINK:AAMRQ) said the company is making progress in increasing its revenue and cutting costs during the period, which allowed the company to achieve an operating income of $262 million and 4.1 percent margin excluding special charges. AMR has $5.1 billion in cash and short-term investments at the end of the quarter.
The company also announced its plan to hire more than 1,500 flight attendants onboard. According to the company, the hiring process will start in November, and training for new hires will begin in January next year.