Thu, Jan 23, 2003
<$3.5> Billion for Terrible Year
As they say, "Consistent with expectations," AMR Corporation,
the parent company of American Airlines, Inc., reported a fourth
quarter net loss of $529 million, or $3.39 per share. This compares
with last year's fourth quarter net loss of $734 million before
special items, and $798 million -- $5.17 per share -- after special
items.
For
full year 2002, AMR reported a net loss of $2.0 billion before
special items, and $3.5 billion -- $22.57 per share -- after
special items. For 2001, the Company reported a net loss of $1.4
billion before special items, and $1.8 billion -- or $11.43 per
share -- after special items. "Clearly, results such as the ones we
reported today are unsustainable," said Don Carty, AMR's chairman
and chief executive officer.
"While there are many factors that impacted our results during
2002, including a sluggish economy, high fuel prices, lingering
concerns over terrorism and the possibility of a war in the Middle
East, the core issue for our Company remains a cost structure that
is out of step with the revenue environment facing domestic
airlines. As we've been discussing with our employees, we believe
that a permanent shift has occurred in the airline revenue
environment which will require us to reduce our annual costs by at
least four billion dollars."
Carty continued, "The people of American have made
tremendous strides to reduce our operating costs by de-peaking our
Chicago and Dallas/Ft. Worth hubs, simplifying our fleet,
automating customer ticketing and check-in functions, as well as a
host of other programs designed to reduce our long- term structural
costs. These incredibly significant efforts have resulted in a
permanent annual savings of two billion dollars. Nonetheless, we
still have a very big challenge in front of us to achieve our four
billion cost-reduction target."
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