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"Our performance indicates very clearly that we are on the right track, but also demonstrates -- just as clearly -- that we have more work to do to return our company to financial health," AMR Chairman and Chief Executive Gerard Arpey said in a statement.The airline’s revenue increased 12.5 percent to $6 billion. American is the largest carrier at Lambert Field in St. Louis.
High fuel costs remain a huge obstacle for American and the rest of the airline industry. American, for example, spent more on fuel, $1.71 billion, in the quarter than the $1.68 billion it paid employees in wages, salaries and benefits. Salary and benefit costs usually rank as the highest cost for an airline.
Arpey said American not only has to battle rising fuel costs, but continuing competition from bankrupt carriers that use the Chapter 11 process to tear up labor contracts and ditch pension obligations.
St. Louis Post Dispatch (STLToday)
American Airlines (AMR) was up in mid-day trading to $24.67 a share (up $0.31).
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