Airlines parent AMR Corp. says a key third-quarter revenue figure will rise
between 9.8 percent and 10.8 percent compared with a year ago.
The company said Tuesday that unit revenue — or total revenue divided by available
seats times miles flown — would grow by similar amounts on its main American
brand and its American Eagle regional operations.
gave the outlook in a note for investors that it filed with the Securities and
airlines have been reporting gains in unit revenue this year as they raised
fares coming out of the recession and also benefited from fees on checked bags,
changing flights and other services. Unit revenue is a closely watched figure
that allows comparisons in financial performance among airlines of different
was the only major U.S. airline to lose money in the second quarter, and it
expects its costs to rise slightly and cash to shrink in the third quarter. The
Fort Worth company expects to end the third quarter with more than $4.3 billion
in unrestricted cash and short-term investments, compared to about $5 billion
at the end of the second quarter on June 30.
traffic is improving. AMR indicated that 2010 traffic measured in miles flown
by passengers would rise about 2.4 percent over 2009.
Tuesday, the International Air Transport Association said global airlines are
rebounding faster than expected from the recession and will earn $8.9 billion
this year after losing nearly $26 billion in the previous two years. The group,
however, thinks 2010 will be the peak of the cycle for airlines, with tougher
conditions in 2011.
U.S. Department of Transportation reported Monday that airlines earned
second-quarter profit margins of 9 percent, the highest since the government
starting keeping track in 2002. The government said the airlines raised $2.1
billion in so-called ancillary fees during the quarter, mostly for bag-checking
fees and reservation changes.