The results are in!

[MetalMover]

http://finance.yahoo.com/news/american-airlines-group-reports-fourth-130000237.html

 

[1AA]

I am so happy to have given up more of my pay and benefits so the NEW AA can turn around and make a profit. Too bad some of that $$$ could have continued in my pension plan. I am sure they would have made a profit with the pensions intact.

 

[jimntx]

However, it states that those results are the combined numbers for both US Airways and AMR for the entire 4th quarter and calendar year...not just the period from the official merger date in December until the end of the year.  This is what is known as a non-GAAP (Generally Accepted Accounting Practices, or Principles) reporting.  They seem to do a GAAP results table at the end of the report, but it's hard to compare with the "reported" results.  (Remember, I'm a flight attendant.  I'm paid to be cute, not smart.)

 

[700UW]

So AA loses money and US makes money.

 

[WorldTraveler]

wrong.

but the group's results were aided by $1 billion less in labor expenses for the year.

 

[700UW]

Without the charges its a $436 million profit.

 

[FWAAA]

Through the first three quarters of 2013,   old AMR had earned $895 million in profits, excluding special items, reorg and merger expenses.
 
Through the first three quarters of 2013,  old LCC had earned $831 million in profits, also excluding special items and merger expenses.   
 
Quite obviously, old AA had some big non-recurring one-time charges when it exited bankruptcy, just like all other companies when they exit Ch 11 protection.  
 
I estimated $2.2 billion excluding all items, so I was a little overly optimistic.   

 

[robbedagain]

wrong.but the group's results were aided by $1 billion less in labor expenses for the year.

Wrong

 

[WorldTraveler]

uh, yes.

Salaries, wages and benefits (millions of dollars)
5,276 (2013)

6,217 (2012)

reduction %(15.1)

 

[RJcasualty]

Both Real AE and the regional outsourced flying numbers must be included in these results. Is there a way to isolate the numbers in order to assess management's claim that Real AE is too expensive? 

 

[WorldTraveler]

there are multiple versions of the data based on what is included.

AE expense results alone show former AMR Corp regional non-fuel expenses were up by 4.4% (tens of millions) compared to a reduction of 15.1% (one billion) for mainline salary and benefit.

Given that thousands of jobs were transferred from AA to AE, those results aren't surprising. Total labor cost at AA and for AMR Corp. is down

 

[robbedagain]

Wt that article did not state labor costs.. the special one time items are mostly related to ch11 and the merger related costs

 

[WorldTraveler]

I didn't say that the special items are labor related.

There are lines on the reports for labor costs and they most definitely show that former AMR Corp's labor cost reductions provided the largest portion of the cost reduction.

 

[will fix for food]

.Given that thousands of jobs were transferred from AA to AE, those results aren't surprising.

There were? Who? Where?

 

[700UW]

Here is a better explanation:
 
http://aviationblog.dallasnews.com/2014/01/american-airlines-us-airways-earn-combined-1-95-billion-for-2013.html/
 

– The $1.95 billion combines their separate earnings for the year, not just since their Dec. 9 merger. They earned $407 million excluding items in 2012.
 
– In the fourth quarter, the US Airways-American earnings totaled $436 million ex-items, compared to a $42 million loss in fourth quarter 2012.
 
– American Airlines booked $2.66 billion in charges related to its Chapter 11 bankruptcy in 2013. Including those charges, the carriers lost $1.34 billion: a $1.98 billion loss for American, and $631 million gain for US Airways.
 
– In 2012, the separate airlines lost $1.81 billion, as American lost $2.45 billion including $2.21 billion in bankruptcy-related charges and US Airways earned $637 million.
 
– Using generally accepted accounting procedures, American Airlines Group – which included the former US Airways numbers since only Dec. 9 – lost $1.83 billion in 2013, compared to a $1.88 billion loss in 2012. The 2013 numbers included $3.1 billion in charges, including the reorganization items.