Modest Profit Posted by AMR

Cost-cutting measures helped AMR Corp. and America West Holdings Corp. reported slim second-quarter profit Wednesday, while Northwest Airlines Corp. had a loss.

AMR, American Airlines’ parent, had net income of $6 million, or 3 cents a share, contrasted with a year-earlier loss of $75 million, or 47 cents a share.

America West, America West Airlines’ parent, said net income dropped 93% to $5.69 million, or 11 cents a share, while the loss at Northwest was $175 million, or $2.11 a share, partially reflecting a write-down for unused aircraft.

Older carriers are struggling with high fuel prices and excess capacity at the same time younger rivals Southwest Airlines Co. and JetBlue Airways Corp., with lower labor costs, are expanding. In the quarter, fuel costs rose 42% at AMR, 49% at America West and 33% at Northwest.

Delta Air Lines Inc. earlier this week posted a $1.97-billion loss, the carrier’s worst quarter ever. On Wednesday, Delta pilots offered to take a 23% wage cut and accept new work rules to help avoid a bankruptcy filing.

The airline industry reported $23.2 billion in losses between 2001 and 2003, and a trade group forecasts a $3-billion loss this year.

Revenue at Fort Worth-based AMR climbed 12% to $4.83 billion. American is using cost reductions to offset falling ticket prices and higher fuel costs. Its labor costs, the largest expense for an airline, declined 8.9% in the quarter because of the $1.8 billion in job, wage and benefit cuts. Fuel, its second-largest expense, rose to $917 million.

America West’s revenue rose 5.1% to $605.1 million. The carrier’s costs climbed 4.4%, led by a fuel expense of $128 million.

Eagan, Minn.-based Northwest said revenue rose 18% to $2.87 billion and fuel costs climbed to $499 million.

AMR shares declined 56 cents to $8.81 on the New York Stock Exchange. Phoenix-based America West dropped 71 cents to $6.41 on the NYSE. Northwest fell 46 cents to $8.48 on Nasdaq.