American Airlines’ AMR Reports $69 Million Fourth-Quarter Loss

AMR, parent company of American Airlines, broke its string of six consecutive quarterly profits, unable to overcome record fuel prices, a slowing economy, and seasonal weakness, and reporting a net loss of $69 million for the fourth quarter.

The current quarter results compare to a net profit of $17 million for the fourth quarter of 2006, or $0.07 per diluted share.

For all of 2007, however, AMR recorded a net profit of $504 million, with $365 million of that coming from American Airlines. AMR’s full-year 2007 results compare to a net profit of $231 million net profit, or $0.98 per diluted share, for all of 2006.

The year-over-year increase in capacity was largely the result of previously announced aircraft density initiatives, mitigated somewhat by weather-related cancellations. Fourth quarter mainline departures declined slightly year over year.

AMR ended the fourth quarter with $5 billion in cash and short-term investments, including a restricted balance of $428 million, compared to a balance of $5.2 billion in cash and short-term investments, including a restricted balance of $468 million, at the end of the fourth quarter of 2006.

As previously disclosed, AMR paid off $865 million in debt in the fourth quarter, including scheduled debt payments and an unscheduled $545 million aircraft debt prepayment.