Number Represents More Revenue For Each Seat Mile Flown

In the midst of bankruptcy proceedings and a spate of flight cancellations due to a variety of issues, AMR Corp. reported Tuesday that it had actually earned more revenue per seat mile flown in the third quarter of 2012.

Bloomberg News reports that the airline posted earnings of $110 million, not counting bankruptcy costs. The figure amounts to a net loss of $238 million for the quarter, according to a statement released by the airline.

But it also represents a 4.5 percent gain in revenue per seat mile flown. American CEO Tom Horton sent the news to employees in an e-mail, saying “Our careful review of strategic alternatives continues, but regardless of the outcome, our improvement in both revenues and costs reflects what the new American can be."

The flight delays and maintenance issues that hit the airline last month only amounted to a 0.4 percent drop in revenue for September. The airline said that effects of the operational issues on the bottom line were negligible.

Bloomberg reports that the airline has been able to reduce labor costs through such means as early retirements taken by more than 2,200 experienced flight attendants. It said it will hire 1,500 new FAs over the next year. It has also trimmed capacity by two percent from mid-September through the first two weeks of November.

The labor dispute between American and its pilot's union has not yet been resolved.

FMI: www.aa.com