AMR Third Quarter Profit of $175 Million

[FA Mikey]

AMR Corporation, the parent company of American Airlines, Inc., today reported a net profit of $175 million for the third quarter of 2007, or $0.61 per diluted share.

As disclosed in AMR's Sept. 21 investor update, the results for the third quarter of 2007 include the impact of a $40 million charge, or $0.13 per diluted share, to reflect an adjustment for additional salary and benefit expense accruals related to years 2003 through 2006 and the first six months of 2007.

The current quarter results compare to a net profit of $15 million for the third quarter of 2006, or $0.06 per diluted share. The year-ago results included a $99 million non-cash charge in Other Income (Expense) to reduce the book value of certain outstanding fuel hedge contracts.

"While record fuel prices in the third quarter were a reminder of the external challenges that we continue to face, we again demonstrated our ongoing progress by posting our sixth straight profitable quarter and our largest net profit in any third quarter since 2000," said AMR Chairman and CEO Gerard Arpey. "We continued to improve our balance sheet while investing in key customer service initiatives, including taking steps to renew our fleet, add new routes, and enhance several products and services. However, we must step up our continued focus on managing costs, work to improve our profit margins, and continue our momentum throughout 2007 and beyond."

story here

 

[MiAAmi]

Oil touched $89 a barrell today (17OCT) and speculation is that it will go much higher.

From Marketwatch

Person: Crude at $120 a real possibility
The market "keeps testing higher levels," when it comes to crude oil. That's according to John Person, the President at NationalFutures.com. He tells John Wordock that "we could easily top 95" dollars a barrel in "the next week." But that's not all, he says technical pressures could mean $120 oil "by year's end."

Enjoy the profits for now but 2008 looks stormy.

 

[Hopeful]

Good thing the execs got theirs

 

[NewHampshire Black Bears]

Good news for AA on the financial front, but perhaps the BIGGER story, is BA looking to buy BMI, and to try to Merge with AA.

For you guys at Kennedy, moving BA from their present "next door" location, to the "Taj Mahal", could probably take, all of 12 hours to complete !

(do you "old timers" still remember how to work those 747's) ?

 

[FA Mikey]

LONDON (Reuters) - British Airways is looking at merger opportunities that could create a trans-Atlantic super-carrier in response to a joint venture between Delta and Air France, the Times said.

The newspaper said on Thursday that aviation sources believed British Airways (BA) was in talks with Michael Bishop, the controlling shareholder of bmi, about buying the British carrier.

It also said that BA was considering a renewed attempt to merge with American Airlines, despite two previous attempts being struck down by competition regulators.

"American Airlines is a key partner for us and in the long term we would like a closer relationship with them," a BA spokesman told Reuters in response to the report.

"We have never said that we are in talks with bmi," he added.

 

[BoeingBoy]

It also said that BA was considering a renewed attempt to merge with American Airlines, despite two previous attempts being struck down by competition regulators.

BA has not previously attempted to merge with AA - ownership requirements in both the U.S. and U.K. have and still do preclude that.

What has been attempted twice is getting anti-trust immunity, ala the NW-KLM and just announced DL-AF arrangements. The big stumbling block in the past has been the LHR limitations and AA/BA's access there. With EU/US Open Skies coming next year, it's a certainty that AA/BA will once again seek anti-trust immunity which would allow a much closer working relationship.

To get an idea of the benefits of getting anti-trust immunity, read 'Delta's Alliance Almost Like Merger'

Jim

 

[FWAAA]

Today, November heating oil is $2.33/gal and home heating oil prices closely track the jet fuel prices (given the similarity in the product). If oil stays where it is, I'm guessing that jetA hits $2.50/gal soon. Result: More MD-80s sent to ROW.

http://biz.yahoo.com/ap/071018/oil_prices.html?.v=13

 

[eolesen]

Yep. And it's not even November yet. I was predicting a spike to $100 by January, but may need to rethink that forecast a bit....

Diesel prices also track with heating oil because they're also essentially the same with different taxation. It's already at $3.60 in parts of Washington, and above $3.40 thruout Utah and Idaho... national average is above $3.00 which starts to present problems for everyone, not just airline employees and customers... If it arrives on a truck, expect it to be more expensive by the end of the year as well.