AMR Corp, the parent company of American Airlines, has posted its highest ever quarterly profit of more than half a billion dollars.
For the three months ending 30 September 2013, the airline generated net profits of US$530 million – an improvement of US$420m compared to the same period last year. Revenues climbed 6.2% to US$6.8 billion – another quarterly record – while operating expenses decreased 3.9%, saving the company US$248 million.
The company’s chairman, president & CEO, Tom Horton, attributed the performance to “the hard work of the entire American team”, who will be rewarded for their efforts with a profit-sharing payout.
“We are pleased to report our highest quarterly net profit in American’s history,” said Horton. “Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways. And we are especially pleased to set aside US$59 million this quarter in expectation of making our first profit-sharing payout since 2001 to our people who have done so much to put American back on top.”
American’s passenger traffic, measured in revenue passenger miles (RPM) increased 2.4% during the third quarter. And although this was slightly behind a 2.9% expansion of the airline’s available seat capacity, average cabin load factors remained at a strong 84.3%.
The company expects capacity to rise approximately 3.5% in the fourth quarter of 2013.