By Christopher Hinton
NEW YORK (Dow Jones) -- American Airlines parent company AMR
Corp. reported a wider first-quarter loss Wednesday due to falling
passenger demand and lower ticket prices.
For the recent quarter, the Fort Worth, Texas, carrier (AMR)
said it earned $375 million, or $1.35 a share, compared to $341
million, or $1.37 a share, in the year-ago period. Revenue fell to
$4.84 billion from $5.7 billion.
"While lower fuel prices have provided a significant buffer
against falling demand in 2009, the struggling economy and capital
markets remain significant challenges for American and the rest of
the industry," said Chairman and Chief Executive Gerard Arpey.
Excluding a one-time $13 million charge related to the early
retirement of leased A300 aircraft, AMR said it lost $1.30 a share.
That was better than the Wall Street forecast of $1.45 a share loss
on revenue of $4.7 billion.
The airline said its unit costs for the first quarter and its
annual outlook were better than what it had estimated in
January.
Shares of AMR leapt 15.4% to $4.87 in recent trading. Year to
date, the stock is down about 60% as demand plummeted on the back
of contracting economy.
AMR is the first legacy-carrier operator to post its
first-quarter results. Delta Air Lines (DAL), Continental Airlines
(CAL), US Airways (LCC), and United Airlines parent UAL Corp.
(UAUA) will report their results next week.
Declining fuel costs paid a significant role in AMR's
better-than expected performance. American Airlines mainline unit
costs fell 6.8% in the first quarter as the price paid for jet fuel
fell to an average of $1.91 a gallon from $2.74 a gallon last year,
a 30% decrease.
Excluding fuel, mainline costs grew 6.8% because of capacity
cuts, higher landing fees and increased employee benefits.
AMR said it ended the quarter with $3.3 billion in cash and
short-term investments, versus $4.3 billion at the end of the
fourth quarter.