American Airlines parent loses $238M in 3Q, to hire new flight attendants

American Airlines

Credit: WFAA

American Airlines parent loses $238M in 3Q, to hire new flight attendants

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by SAMANTHA BOMKAMP and JOSH DAVIS

Associated Press and WFAA reports

Posted on October 17, 2012 at 8:31 AM

Updated Wednesday, Oct 17 at 11:10 AM

NEW YORK  — American Airlines parent company AMR says it lost $238 million in the third-quarter on employee severance costs and other charges related to its bankruptcy.

Without those charges, the Fort Worth, Texas, company would have posted an operating profit as it paid less for fuel and benefited from a partnership that boosted traffic overseas.

The quarterly loss works out to 71 cents per share. A year ago, AMR lost $162 million, or 48 cents per share.

In a news release, the company pointed out it posted a net profit of $110 million excluding the reorganization items and special charges, which was a $272 million improvement compared to the prior year period.

“I want to thank my American colleagues for their efforts in delivering another profitable quarter, excluding reorganization and special items,” said Tom Horton, AMR’s Chairman and Chief Executive Officer. “These results were driven by the best unit revenue growth in the industry in each month of the quarter, and by record load factor, as we continue to make progress in our restructuring for a successful future.”

But AMR Corp. said its core performance improved, despite widespread cancellations and delays in September. American posted an all-time company record for mainline load factor, or the percentage of total seats filled, in the third quarter at 85.5 percent. It also made more money per passenger.

American also said Wednesday it will hire 1,500 flight attendants starting next month because an overwhelming number of current staff took buyout offers.

“For the first time in over a decade, American is seeking to add more than 1,500 new flight attendants who we believe will bring new perspectives to the airline,” said Lauri Curtis, American’s Vice President – Flight Service. “We value our flight attendants and appreciate the important contributions they make to our company every day. We look forward to welcoming new faces and working together to bring a fresh energy to our team, while at the same time giving current flight attendants the opportunity to move up the seniority list and reducing the number of current flight attendants who have to serve on reserve.”

The airline will begin the recuiting and hiring process in November, with training beginning in January 2013. Job openings will be posted in November on AAcareers.com.

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