FORT WORTH, Texas, July 15 /PRNewswire-FirstCall/ -- AMR Corporation (NYSE: AMR), the parent company of American Airlines, Inc., today reported a net loss of $390 million for the second quarter of 2009, or $1.39 per share. The results include the impact of approximately $70 million in non-recurring charges related to the sale of certain aircraft and the grounding of leased Airbus A300 aircraft prior to lease expiration. Excluding those non-recurring charges, the second quarter 2009 loss was $319 million, or $1.14 per share.
The current quarter results compare to a net loss of $1.5 billion for the second quarter of 2008, or $5.83 per share. The year-ago results included a $1.1 billion non-cash charge to write down the value of certain aircraft and related long-lived assets to their estimated fair value and a $55 million charge for severance-related costs from the Company's system-wide capacity reductions. Excluding those special charges, AMR reported a second quarter 2008 net loss of $298 million, or $1.19 per share.
"The challenges for our industry and company have continued throughout 2009," said AMR Chairman and CEO Gerard Arpey. "With ongoing global economic weakness and the resulting effect on travel demand, revenues are down sharply from a year ago. The spot price of oil, while much lower than this time last year, has risen since early this year and remains volatile. Even as we face these hurdles, however, we continue to focus on improvements in areas within our control. We bolstered liquidity and obtained additional committed financing related to our fleet renewal program. We also improved in our dependability and customer experience measures and announced additional capacity reductions as we seek the right balance between supply and demand."
Among accomplishments during the second quarter of 2009 and to date, the Company obtained $66 million from an aircraft sale-leaseback transaction and completed a $520 million public offering of enhanced equipment trust certificates. The offering provides financing for 16 of its Boeing 737 deliveries and four owned 777 aircraft for which the Company has received approximately $150 million in gross proceeds to date. The Company also announced plans to take delivery of eight additional 737s, bringing total 737 firm orders to 84 during 2009 through 2011, including aircraft already delivered this year, and enhanced the terms of a committed financing arrangement for 737 aircraft.
Taking into account the recently completed $520 million offering, all of American's firm 737 orders through 2011 are, subject to certain terms and conditions, covered by committed financing arrangements.
In addition, the Company recently entered into an amended agreement with one of its credit card processors that limits the amount of the reserve the processor can hold back from American's credit card receivables through the end of 2009. The Company estimates the maximum hold-back reserve to be approximately $300 million, including the $154 million reserve it had posted as of June 30, 2009, during this period.
Continuing its capacity discipline, in June 2009 the Company announced plans to reduce system-wide capacity by approximately 7.5 percent for full-year 2009 compared to 2008 levels, a reduction of about one percentage point greater than forecast in earlier guidance. The Company also continued to streamline its operations and identify cost savings opportunities, including consolidating its reservations function by discontinuing operations at its Eastern Reservations Office, which will occur in September of this year.
Arpey reiterated expectations that American and four of its fellow oneworld members - British Airways, Iberia, Royal Jordanian and Finnair - will receive DOT approval of their application for global antitrust immunity this fall, and the companies look forward to continuing to demonstrate the public benefits of their plans to regulators in the European Union. With this approval, American, British Airways and Iberia plan to launch a joint business relationship that will improve travel options and customer benefits on flights between North America and Europe.
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