American Airlines Fuel Costs Will Be Less Than Expected


Aug 20, 2002
Long Island, NY
American Airlines Fuel Costs Will Be Less Than Expected

Thursday December 22, 12:01 PM EST

SAN FRANCISCO (Dow Jones) -- American Airlines' parent company said Thursday its jet-fuel costs have turned out to be much lower than expected late in the year, and it plans to end the fourth quarter with more than $4 billion in cash and equivalents.

AMR Corp. (AMR), based in Fort Worth, Texas, closed out the third quarter with $3.9 billion in cash and short-term investments, the company said in a Securities and Exchange Commission filing.

AMR (AMR) said its average price for jet fuel will be $2.03 a gallon during the quarter, and $1.73 a gallon for the year.

In October the company said it expected to pay $2.34 a gallon in the fourth quarter.

Fuel consumption for the corporation should total 779.2 million gallons of fuel for the quarter.

Unit revenue at American Airlines should rise in a range of 12.5% to 13.5%, the company said in the filing.

Cost per available seat mile at American Airlines will be 11.05 cents, but excluding fuel and other items it will total 7.79 cents.