American Airlines posts $2 billion loss on charges
By DAVID KOENIG | AP Airlines Writer January 28, 2014 8:02AM
American Airlines reported a $2 billion loss for the fourth quarter because of charges mostly related to its bankruptcy reorganization and merger with US Airways. | AP file photo
Updated: January 28, 2014 8:02AM
DALLAS — American Airlines reported a $2 billion loss for the fourth quarter because of charges mostly related to its bankruptcy reorganization and merger with US Airways.
The company said Tuesday that excluding one-time charges totaling $2.4 billion, American and US Airways would have earned a combined profit of $436 million, or 59 cents per share.
Analysts, who usually exclude special items, were expecting 55 cents per share.
The airlines merged on Dec. 9 as American came out from two years in bankruptcy protection. Together they are the world’s biggest airline operator.
Tuesday’s results were the first from the company and were complicated by the timing of the merger, two-thirds into the quarter. Official figures included less than one month of US Airways’ operations. The company also gave figures as if the airlines had merged at the beginning of the quarter, and compared those to the separate results of American and US Airways during the same period in 2012.
The combined profit of $436 million, which excluded the one-time restructuring items, compared with a combined loss of $42 million a year earlier.
“The early returns on our merger are very positive,” CEO Doug Parker said in a statement. He said the company expected results to improve further in 2014.
American and US Airways will operate as separate airlines with their own fleets and reservations systems for up to two years before phasing out the US Airways brand.