Parent of American Airlines posts $220M profit
The parent of American Airlines is reporting a $220 million profit for the second quarter as its cost-cutting from its bankruptcy reorganization kicked in.
It’s the first time in six years that the airline has had a profit during the April-June quarter. During the same period last year, it lost $241 million, mostly because of bankruptcy-related expenses.
Revenue was steady at about $6.45 billion.
AMR Corp. has been operating under bankruptcy protection since late 2011. It has cut worker pay and other expenses, and reduced overall flying. Spending for wages was 18 percent lower than a year ago. Fuel expenses fell 3 percent as the price of fuel dropped.
American is seeking approval for a merger with US Airways Group Inc. The airlines have said they hope to close the deal by the end of September.