Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
Now how much $$$ did the execs just get?
AMR needs more than $1 billion in costs cuts - CEO
Wed May 10, 2006 10:54 AM ET
CHICAGO, May 10 (Reuters) - American Airlines needs to cut costs by more than $1 billion to keep its expenses in line with 2005 levels, the No. 1 U.S. airline's chief executive said on Wednesday.
American, a unit of AMR Corp. (AMR.N: Quote, Profile, Research), is "looking under every rock" for cost-cutting opportunities to offset record high fuel prices, said Gerard Arpey on a Webcast of a Bear Stearns Global Transportation Conference.
FACT BOX
AMR.N (AMR Corp)
Last: $28.64
Change: -0.12
Up/Down: -0.42%
MayAugNovFeb
Quote
Full Chart
Company Profile
Analyst Research
News for AMR.N
AMR needs more than $1 billion in costs cuts - CEO
TEXT-American Airlines
UPDATE 3-Venezuela receives FAA safety upgrade
"We need more than a billion dollars in savings just to keep our costs even with last year," Arpey said.
The airline currently has a plan to trim costs by $700 million a year through such measures as fuel conservation, lowering ticket distribution costs and direct airplane routing. But rising fuel prices threaten to undermine the airline's cost-cutting progress, Arpey said.
The price of crude oil <CLc1>, which relates directly to the price of jet fuel, notched a record high above $75 a barrel last month. High fuel costs have forced some airlines to raise fares defensively. American also has tried to cushion the blow by hedging its oil exposure.
Shares of AMR were up 14 cents at $28.90 on the New York Stock Exchange.
© Reuters 2006. All Rights Reserved.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes.
Reuters does not endorse the views or opinions given by any third party content provider.
AMR needs more than $1 billion in costs cuts - CEO
Wed May 10, 2006 10:54 AM ET
CHICAGO, May 10 (Reuters) - American Airlines needs to cut costs by more than $1 billion to keep its expenses in line with 2005 levels, the No. 1 U.S. airline's chief executive said on Wednesday.
American, a unit of AMR Corp. (AMR.N: Quote, Profile, Research), is "looking under every rock" for cost-cutting opportunities to offset record high fuel prices, said Gerard Arpey on a Webcast of a Bear Stearns Global Transportation Conference.
FACT BOX
AMR.N (AMR Corp)
Last: $28.64
Change: -0.12
Up/Down: -0.42%
MayAugNovFeb
Quote
Full Chart
Company Profile
Analyst Research
News for AMR.N
AMR needs more than $1 billion in costs cuts - CEO
TEXT-American Airlines
UPDATE 3-Venezuela receives FAA safety upgrade
"We need more than a billion dollars in savings just to keep our costs even with last year," Arpey said.
The airline currently has a plan to trim costs by $700 million a year through such measures as fuel conservation, lowering ticket distribution costs and direct airplane routing. But rising fuel prices threaten to undermine the airline's cost-cutting progress, Arpey said.
The price of crude oil <CLc1>, which relates directly to the price of jet fuel, notched a record high above $75 a barrel last month. High fuel costs have forced some airlines to raise fares defensively. American also has tried to cushion the blow by hedging its oil exposure.
Shares of AMR were up 14 cents at $28.90 on the New York Stock Exchange.
© Reuters 2006. All Rights Reserved.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes.
Reuters does not endorse the views or opinions given by any third party content provider.