AMR posts Q1 loss

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04-16-2008, 08:50 AM

texaspilot76

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AMR posts Q1 loss

This sure doesn't help APA in their negotiations.

http://news.aol.com/story/_a/america...16122109990012

04-16-2008, 08:59 AM

wannabepilot

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Wow...a loss of $328 million when you fill a record percentage of your seats?

04-16-2008, 09:04 AM

Cycle Pilot

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I'm sure management got their bonuses, though!

04-16-2008, 10:14 AM

Adola

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If oil went down to $30/barrel, the load factor was 99%, all fares were increased 25% and the employees took a 20% pay cut, a good airline accountant could still show a loss for the quarter!

04-16-2008, 10:39 AM

8LatRB

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Oil popped to $115 today for a short time today.

04-16-2008, 12:28 PM

ghilis101

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Quote:

Originally Posted by Adola

If oil went down to $30/barrel, the load factor was 99%, all fares were increased 25% and the employees took a 20% pay cut, a good airline accountant could still show a loss for the quarter!

exactly, it depends on how they show their assets through depreciation, expenses, tying up cash in certain things, stock, etc. this comes as no surprise during negotiations. another tactic so management can justify a crappy contract

04-16-2008, 01:00 PM

JetPiedmont

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Quote:

Originally Posted by Cycle Pilot

I'm sure management got their bonuses, though!

Yup, all $40 million worth...

04-16-2008, 01:40 PM

UnlimitedAkro

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didnt anyone take Aviation Accounting 101? The balance sheets from airlines are so easily and LEGALLY manipulated to post losses or gains. Whatever the execs want at the time they can post it.

Airlines make money before they offer services. They can account for that money if they want to look good, or not account for it on this quarter and account for it later to look bad, and it is perfectly legal.

So if anyone is surpised that AA is posting losses amid contract negotiations, DONT BE!

04-16-2008, 02:45 PM

Beantown

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I agree that mgmt can show a loss if they want to but the facts are Americans fuel costs are going to be 3 BILLION more then last yr. Thats very real money. I have little doubt they are losing money. Lets see how all the other airllines not in negoations do in the next few weeks. My guess is not good.

04-16-2008, 02:50 PM

#10

UnlimitedAkro

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I agree with you Beantown. Everyone will be posting losses due to fuel and high operating expenses. I should have added that at the end of my post above.