$1.7 billion net loss in Q1 for American's parent
The parent company of American Airlines, AMR Corporation, reported a $1.7-billion net loss in the first quarter of 2012, but saw consolidated revenues of $6 billion, a 9.1-percent, year-over-year, increase. Excluding reorganization and special items, the company saw a loss of $248 million, compared to a $405 million loss in Q1 2011. AMR experienced a total net loss of $436 million during the first quarter of 2011.
The increase of domestic unit revenue had a significant impact on AMR's total revenue increase, and international performance picked up in the first quarter. Yields to Mexico, Central America and South America improved in the first quarter, leading the company to a 10.8-percent, year-over-year, revenue increase to Latin America.
Fuel had a major impact on the quarter's results. AMR experienced a 17.6-percent increase in the price of fuel when compared to the first quarter of 2011. The rise resulted in an increased payment of $325 million for the same amount of jetfuel. Total operating expenses for the quarter came in at $6.1 billion, a 6.6-percent, year-over-year, rise.
The company's $1.4 billion reorganization expense includes $1 billion related to aircraft financing renegotiations and rejections; a $340 million loss due to the cancellation of facility agreements at Dallas airports; and $45 million in professional fees. The company's aircraft renegotations include the rejection of eight 757-200 leases and the modification of 158 leases.
American Airlines also announced that it will begin services between Miami and Seattle using a B757-200 starting June 14.