$8 million Q1 profit, excl reorg expenses and special items

[FWAAA]

First quarter profits have not been very common among legacy airlines over the past few years, yet today, AA reported a first quarter profit of $8 million, excluding reorganization expenses and special items (including some merger expenses):

http://hub.aa.com/en/nr/pressrelease/amr-corporation-reports-first-quarter-2013-net-profit-of-8-million-excluding-reorganization-and-special-items

Labor costs down 16.7%, almost in line with the claimed 17% reduction achieved last year. Yield up, PRASM up, but Pacific yields and PRASM were dreadful. Compared to Europe or S America, AA is giving away seats to Asia.

AA noted that its performance at CHI and LAX were particularly strong (even though it faces strong competition from UA at both and DL at LAX).

Unlike UA, which has been slashing capacity, AA's capacity cuts were very small. Unit revenue up on slightly higher yields and higher load factors.

 

[jimntx]

$8 million profit! Bonusses all around at Centerport! I think the bonuses should be at least $16 million. Don't you?

P.S. Would be interesting to see the real figure--i.e., including reorganization expenses and "special items." At Kroger, I'm not allowed to exclude special items. If it's in my basket, I have to pay for it.

 

[FWAAA]

GAAP loss was $341 million, including all reorg expenses and special items.

Between the nationwide AA shutdown on Tuesday and the continuing weather problems in CHI and DFW yesterday and today, the second quarter will show a revenue hit of at least $50 million.

 

[MCI transplant]

GAAP loss was $341 million, including all reorg expenses and special items.

Between the nationwide AA shutdown on Tuesday and the continuing weather problems in CHI and DFW yesterday and today, the second quarter will show a revenue hit of at least $50 million.

Hey, they had an alternative to ORD! But they shut it down. STL! -----So now they pay the price!

 

[JFK Fleet Service]

Meanwhile at The Chosen Instrument...

 

[JFK Fleet Service]

Hey, they had an alternative to ORD! But they shut it down. STL! -----So now they pay the price!

Looked at a weather map? STL was borked by the same weather system.

 

[WorldTraveler]

First quarter profits have not been very common among legacy airlines over the past few years, yet today, AA reported a first quarter profit of $8 million, excluding reorganization expenses and special items (including some merger expenses):

http://hub.aa.com/en/nr/pressrelease/amr-corporation-reports-first-quarter-2013-net-profit-of-8-million-excluding-reorganization-and-special-items

Labor costs down 16.7%, almost in line with the claimed 17% reduction achieved last year. Yield up, PRASM up, but Pacific yields and PRASM were dreadful. Compared to Europe or S America, AA is giving away seats to Asia.

AA noted that its performance at CHI and LAX were particularly strong (even though it faces strong competition from UA at both and DL at LAX).

Unlike UA, which has been slashing capacity, AA's capacity cuts were very small. Unit revenue up on slightly higher yields and higher load factors.

Overall costs were down by just a couple percent... so what was up? maintenance expenses and interest were some of the largest.
and why is worker's compensation excluded from the CASM calculation? I don't think I have ever seen that item excluded from any airline before.

 

[FWAAA]

Looked at a weather map? STL was borked by the same weather system.

Exactly. And even if STL had been as sunny as Los Angeles (where we're having typically great weather), that wouldn't have helped the CHI O&D passengers, whose numbers are several multiples of STL.