Airline Finance News - North America

AirGuide Business, April 21, 2008

American Airlines

American Airlines and other major carriers have attempted to offset their jet fuel burden by raising ticket prices, although fare increases have not kept pace with rising fuel prices. The carrier said it planned to reduce its 2008 mainline capacity by 1.4 percent for the year. It would cut domestic capacity by 3.6 percent and increase capacity on lucrative international routes by 2.5 percent. The airline industry has been hit this year by high fuel prices, which are directly related to the price of oil. Nymex crude oil notched a record high above USD$115 a barrel on Wednesday. Apr 17, 2008

American Airlines

American Airlines doesn't need to take part in a big merger to stay competitive in an industry set to be transformed by consolidation, the chief executive of its parent company said on Wednesday. Speaking after AMR reported a hefty quarterly loss due to skyrocketing fuel costs, Gerard Arpey said the No. 1 US airline has not decided what its role in a consolidated industry might be, two days after Delta Air Lines announced its plan to buy rival Northwest Airlines. AMR on Wednesday reported a first-quarter loss as the company grappled with the soaring fuel prices that have walloped the industry overall. Those rising costs combined with a weak economy helped prompt the proposed Delta/Northwest deal on Monday and could spur a wave of further consolidation amid fears of falling travel demand. Apr 17, 2008

American Airlines

American Airlines parent AMR said it would cut capacity and accelerate its fleet renewal plan in hopes of boosting revenue and cost savings. Its shares 10 percent after an 8 percent sell-off on Tuesday, but pared those gains later in the day. AMR is still smarting from last week's public relations debacle when it canceled 3,000 flights for maintenance checks. Arpey apologized again to passengers who were affected. The impact of the crisis will not be clear until the release of second-quarter results, although Chief Financial Officer Tom Horton reiterated that the cancellations probably would cost the airline "tens of millions" of dollars. Also on Wednesday, AMR said it would sell American Beacon Advisors, its asset-management subsidiary, to Lighthouse for about USD$480 million. Apr 17, 2008

American Airlines

American Airlines parent AMR said that first-quarter loss amounted to USD$328 million, compared with a profit of USD$81 million a year earlier. Revenue rose to USD$5.7 billion from USD$5.4 billion a year earlier. AMR ended the quarter with USD$4.9 billion in cash and short-term investments. AMR shares closed Wednesday 4.1 percent higher at USD$8.92 on the New York Stock Exchange. Jet fuel was by far the carrier's biggest expense in the quarter. AMR paid USD$2.1 billion for fuel -- USD$2.74 per gallon, which is a 48 percent increase over the same quarter a year earlier. The company predicted a fuel price of USD$3.01 per gallon for the second quarter. Apr 17, 2008

American Airlines

ASIG will continue providing American Airlines with fueling services at 10 US locations under a deal announced yesterday. Apr 17, 2008