American Air parent posts first second-quarter profit since 2007
(Reuters) - American Airlines parent AMR Corp AAMRQ.PK reported its first second-quarter profit since 2007 on Thursday, buoyed by cost-cutting under its Chapter 11 restructuring.
The carrier, which plans to merge with US Airways Group Inc (LCC.N) and form the world's biggest carrier later this year, said its net income for the quarter was $220 million, or 59 cents a share, compared with a loss of $241 million, or 72 cents a share, a year earlier. On that basis, it was the first profit in the second period for the company since 2007.
Excluding special items and reorganization costs, profit was $357 million in the latest period, the company said. Adjusted for items, per-share profit was 92 cents in the period, compared with 80 cents expected by analysts on average, according to Thomson Reuters I/B/E/S.
Quarterly revenue was flat at about $6.45 billion.
Operating expenses fell nearly 6 percent, with costs tied to wages and salaries down 18 percent.
American has renegotiated plane leases, cut management and support staff and frozen pension plans to lower costs since filing for bankruptcy in November 2011.
(Reporting by Karen Jacobs in Atlanta; Editing by Nick Zieminski and Bernadette Baum)
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