American Testing Mail Cargo System
The post office suspended its contract with Fort Worth-based American in February, after determining that the airline failed to meet certain performance goals, including on-time delivery.
The post office also suspended its contract with US Airways, citing similar problems. The suspensions did not affect mail delivery, according to the post office, because other carriers picked up the slack.
Before the suspension, American was carrying about 10 percent of the nation's domestic mail, including letters and small packages, according to the post office.
The postal contract brought significant revenue to American's cargo division. During the first three months of 2003, American collected about $73 million from domestic and international mail delivery, according to the latest figures available from the Transportation Department.
Tim Wagner, an American spokesman, said Friday that the airline is testing a new system for mail delivery that will help it meet the Postal Service's requirements.
He declined to disclose details of the tests but said they combine new technology with changes in operations.
"We sat down with [postal officials] to see how we can revamp our program to meet their needs," Wagner said. "Once our test is complete, we'll have a better idea of where we're at."
American's revenues from cargo were flat during the first quarter. The airline collected $151 million from cargo delivery, versus $148 million during the first quarter of 2004.
For American, the world's largest airline, every bit of revenue counts.
The carrier lost $162 million in the first quarter and is struggling to return to profitability amid high fuel prices and heavy competition from low-fare rivals.
American's stock (ticker: AMR) slipped 40 cents, or nearly 4 percent, Friday to close at $10.21 on the New York Stock Exchange.