American Airlines' USD436m 1Q2011 loss smaller than expected

American Airlines parent AMR Corp reported smaller-than-expected quarterly net loss of USD436 million, helped by cost cuts and fare increases, but soaring fuel prices has prompted the carrier to curb capacity this year. Shares in the carrier were down 1.1%, on a mixed day for US airline stocks. United Continental Holdings, JetBlue and Southwest are set to report their 1Q2011 earnings on 21-Apr-2011.

American plans to trim 4Q2011 system capacity by 1% by scaling back plans to add new services. The carrier plans to retire 10% of its MD-80 fleet and replace them with more fuel efficient B737 jets.

American Airlines consolidated financial highlights for the 3 months ended Mar-2011:

  • Revenue: USD5,533 million, +9.2% year-on-year;
  • Operating costs: USD5,765 million, +7.4%;
  • Operating profit/loss: (USD232 million), compared to a loss of USD298 million in p-c-p;
  • Net profit/loss: (USD436 million), compared to a loss of USD505 million in p-c-p;
  • Mainline operations:
    • Passenger traffic (RPMs): +1.6%;
    • Passenger load factor: 77.1%, -0.8 ppt;
    • Passenger revenue yield per RPM: USD14.18 cents, +6.2%;
    • Passenger revenue per ASM: USD10.92 cents, +5%.
  • 2Q2011 traffic forecast:
    • Consolidated capacity: +3.9%;
      • Mainline: +2.9%;
      • Domestic: -0.4%;
      • International: +8.1%. 

Selected AAD daily share price movements (% change): 20-Apr-2011