DOW JONES NEWSWIRES
American Airlines parent AMR Corp.'s (AMR) first-quarter net
loss widened on falling revenue amid a steep drop in demand owing
to the slumping economy.
"While lower fuel prices have provided a significant buffer
against falling demand in 2009, the struggling economy and capital
markets remain significant challenges," Chief Executive Gerard
Arpey said.
He added the company got about $100 million from a loan secured
by aircraft and cut planned capital spending for the year by about
$100 million.
Shares jumped more than 15% to $4.88 in recent trading as the
results topped analysts' estimates. The stock has lost more than
half of its value so far this year.
AMR posted a net loss of $375 million, or $1.35 a share,
compared with a year-earlier loss of $341 million, or $1.37 a
share, as there were more shares outstanding in the most recent
period. The latest results included five cents in charges related
to aircraft retirements.
Revenue decreased 15% to $4.84 billion.
Analysts polled by Thomson Reuters expected a loss of $1.50 on
revenue of $4.73 billion.
AMR's fuel bill fell from a year ago as per-gallon fuel prices
slid 30%.
Load factor, or the percentage of available seats filled, fell
to 75.7% from 79.1% as demand fell faster than capacity cuts.
Revenue per available seat mile - considered the best measure of
revenue for airlines - fell 8.7%, better than the company's
expectations last month for an 11% drop on falling demand.
Looking forward, AMR affirmed its full-year outlook for mainline
capacity to decrease more than 6.5%, including a 9% drop in the
U.S. and a 2.5% decline internationally. It sees second-quarter
capacity down 7.5% and average fuel price for the current quarter
at $1.89 a gallon, and said it has hedged 37% of its expected
second-quarter fuel consumption.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com