American Airlines Posts Third Quarter Profit | KERA News

American Airlines Posts Third Quarter Profit

Oct 17, 2013

After years of losses, American Airlines is making money by boosting revenue and cutting labor costs.

American's parent company, Fort Worth-based AMR Corp., said Thursday that it earned $289 million, or 76 cents per share, in the third quarter. That's a turnaround from a loss of $238 million, or 71 cents per share, a year earlier.

Adjusted profit is a record $530 million. That figure doesn't include bankruptcy-reorganization costs and other special items.

Revenue is up 6 percent, as passengers pay more per mile to fly. Labor costs are down 13 percent from a year ago.

American and US Airways plan to merge if they can win or settle an antitrust lawsuit filed by the U.S. Justice Department. Texas Attorney General Greg Abbott announced earlier this month that Texas has dropped its opposition to the planned merger. He said he got assurances from American that it will maintain service to rural parts of Texas.

American announced on Wednesday that it's adding its first-ever non-stop service from D/FW Airport to Hong Kong and Shanghai. CEO Tom Horton said the new service reinforces American’s commitment to strengthen its presence in the Asia-Pacific region.  The new flights will start next summer.

American also plans to hire 1,500 new pilots, recalling all furloughed pilots who want to return. American will hire 1,500 flight attendants in addition to the 1,200 agents and representatives who joined the airline this year.