American Airlines parent AMR Corp. has reported a third-quarter net loss of US$162 million, marking the company’s fourth straight negative reporting period.
Chairman and CEO Gerard Arpey told a media conference that AA’s quarterly fuel costs soared 30% year-over-year and that “it’s no secret that the court restructuring process used by our competitors [in the previous decade] … has intensified our competitive challenge.”
Arpey said the airline’s number one priority was to agree “next-generation labour contracts … more in line with the competitive market realitiesâ€.
Airline management has in recent weeks engaged in “very focused and intensive dialogue” with the union representing AA flight deck crew, according to Arpey.
AMR generated US$6.38 billion in revenue in the third quarter, up 9.1 percent year-over-year, while costs lifted 15.2 percent to US$6.34 billion.
Operating profit was $39 million, down 88.5 percent.
In more positive news, Amadeus and American Airlines have reached a medium-term agreement to extend their previous agreement for full content.
Under the agreement, Amadeus travel agencies will continue to have access to American Airlines fares and inventory with no change from the previous agreement.
