American Airlines’ parent AMR reports July profit of $292 million
The parent company of American Airlines reported a $292-million profit for July, a monthly record for the company that is trying to exit bankruptcy in the next few months.
Excluding $57 million in reorganization fees, AMR Corp. reported $349 million in operating profit, according to a monthly filing required by the U.S. Bankruptcy Court.
July’s profit is the highest for any month in the company’s history. In comparison, AMR reported a $357-million profit for the entire second quarter of 2013, the company said.
In a letter to employees, AMR Chief Executive Tom Horton called the financial report a sign that “we are completing one of the most successful turnarounds in aviation history.”
“We are building a strong, competitive and profitable new American poised to lead again,” he wrote.
The strong profit, however, cut against AMR’s justification for merging with US Airways to create the world’s largest airline. The carrier has said it needs the merger to better compete against its rivals, such as Delta Air Lines and United Airlines.
The proposed merger has been challenged by the U.S. Justice Department, which filed a lawsuit this month, arguing that such a merger would cut competition and lead to higher fares and reduced service.
The airlines have promised to fight the suit and filed motions last week, requesting a Nov. 12 trial date, about three months sooner than the Justice Department’s proposed trial date.
