Manufacturing Industry
AMR Corp reports record quarterly loss after terrorist attacks
Airline Industry Information, Oct 26, 2001
AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD
AMR Corp, the parent company of American Airlines, reported a record quarterly net loss of USD414m on 24 October.
Don Carty, the chairman and CEO of AMR Corp, stated that the aviation industry was in trouble prior to 11 September, but that "the attacks and their aftermath further weakened traffic and had a staggering effect on our overall financial performance," Reuters reported. AMR Corp's stock is down by about 30% since the attacks and the company is losing USD10-15m per day during the current quarter.
American Airlines lost two aircraft in the September terrorist attacks, which involved four passenger aircraft being flown into New York's World Trade Center, the Pentagon in Washington and a field in Pennsylvania. The other two aircraft used in the attacks belonged to United Airlines.
American Airlines is trying to cut costs by reducing capital spending, including the deferral of at least 29 of 45 new aircraft deliveries planned for 2002. The carrier has also reduced capacity by about 20% and announced 20,000 job cuts in September.
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