AMR Corporation Announces First Quarter 2012 Results; Files Form 10-Q Quarterly Report

Reports 1Q 2012 Net Loss of $1.7 Billion

Excluding Special Items, 1Q Net Loss Was $248 Million Compared to a Net Loss of $405 Million in 1Q 2011

Reports 10.3 Percent Consolidated Unit Revenue (PRASM) Growth

 

FORT WORTH, Texas, April 19, 2012 /PRNewswire/ -- AMR Corporation, the parent company of American Airlines, Inc., today filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission. The report summarizes AMR's business and financial results for the first quarter ended March 31, 2012, on a consolidated basis, and is available in the Investor Relations section of AA.com.

First Quarter 2012 Results
In first quarter 2012, AMR incurred a net loss of $1.7 billion compared to a net loss of $436 million in the same period of 2011. Excluding reorganization and special items, the net loss was $248 million compared to the net loss of $405 million for first quarter 2011.
AMR recorded first quarter 2012 consolidated revenues of approximately $6.0 billion, an increase of 9.1 percent year-over-year. Consolidated passenger revenue per available seat mile (unit revenue) grew 10.3 percent compared to the first quarter 2011, and mainline passenger unit revenue increased 10.0 percent.

• Consolidated passenger yield, which represents the average fares paid, increased 7.4 percent year-over-year in first quarter 2012, and mainline passenger yield increased 7.3 percent.
• Mainline capacity, or total available seat miles, in first quarter 2012 increased 0.2 percent compared to the same period in 2011.
• American's mainline load factor, or the percentage of total seats filled, was 79.0 percent during first quarter 2012, compared to 77.1 percent in first quarter 2011.

The Company's revenue performance was driven by significant demand and a positive pricing environment that resulted in higher load factors and better yields. Domestic unit revenues increased across all five of the Company's hubs. International performance was improved across all regions, with unit revenue in the Atlantic entity increasing by 9.7 percent in first quarter 2012 versus the same period last year, as American continues to capitalize on its joint trans-Atlantic business with British Airways and Iberia by offering an expanded network to its business customers. Latin America, the Company's largest international entity, posted a unit revenue increase of 10.8 percent in first quarter 2012 driven by yield improvements in Mexico, Central and South America.
AMR's consolidated operating expenses, excluding special items, were $6.1 billion, 6.6 percent above the same period last year. Consolidated unit costs increased 0.9 percent year-over-year, excluding fuel costs, which includes benefits the Company realized from improved operating performance due, in part, to mild weather in the quarter and restructuring related cost savings from renegotiated aircraft leases and approval of the Company's motions to reject certain facility agreements and other obligations.
Reorganization Expenses

• The Company's first quarter results include approximately $1.4 billion in reorganization items resulting from the voluntary filing by the Company and certain of its direct and indirect U.S. subsidiaries of petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on November 29, 2011. 
• Of the reorganization items, approximately $1.0 billion is related to the Company's aircraft financing renegotiations and rejections, which includes the modification of 158 aircraft leases; as well as the rejection of eight leases relating to seven Boeing 757-200 aircraft, one McDonnell Douglas MD-80 aircraft, and eight spare engines. The Company also rejected one Airbus A300-600R aircraft that was subject to a mortgage.
• $340 million is attributable to the Company's motion to reject facility agreements supporting special facility revenue bonds at Dallas/Fort Worth International Airport and Fort Worth Alliance Airport.
• $45 million is related to an accrual for professional fees.

Fuel Impact
Taking into account the impact of fuel hedging, AMR paid approximately $3.24 per gallon for jet fuel in first quarter 2012 versus approximately $2.76 per gallon in first quarter 2011, a 17.6 percent increase. As a result, the Company paid $325 million more for fuel in first quarter 2012 than it would have paid at prevailing prices from the prior-year period.
Cash Position
AMR ended the first quarter with approximately $5.6 billion in cash and short-term investments, including a restricted cash balance of $771 million and approximately $9 million of collateral relating to fuel hedging transactions, compared to a balance of approximately $6.3 billion in cash and short-term investments, including a restricted cash balance of $455 million and approximately $390 million of collateral relating to fuel hedging transactions, at the end of first quarter 2011.
As of November 30, 2011, the Company had approximately $4.8 billion in cash and short-term investments, including a restricted cash balance of $693 million.

PR Newswire

Boeing, Airbus and Embraer to Collaborate on Aviation Biofuel Commercialization

GENEVA, March 22, 2012 /PRNewswire/ -- Boeing (NYSE: BA), Airbus and Embraer today signed a memorandum of understanding to work together on the development of drop-in, affordable aviation biofuels. The three leading airframe manufacturers agreed to seek collaborative opportunities to speak in unity to government, biofuel producers and other key stakeholders to support, promote and accelerate the availability of sustainable new jet fuel sources.

Boeing Commercial Airplanes President and CEO Jim Albaugh, Airbus President and CEO Tom Enders, and Embraer Commercial Aviation President Paulo Cesar Silva, signed the agreement at the Air Transport Action Group (ATAG) Aviation and Environment Summit in Geneva.

"There are times to compete and there are times to cooperate," said Jim Albaugh. "Two of the biggest threats to our industry are the price of oil and the impact of commercial air travel on our environment. By working with Airbus and Embraer on sustainable biofuels, we can accelerate their availability and reduce our industry's impacts on the planet we share."

"We've achieved a lot in the last ten years in reducing our industry's CO2 footprint - a 45 percent traffic growth with only three percent more fuel consumption," said Tom Enders. "The production and use of sustainable quantities of aviation biofuels is key to meeting our industry's ambitious CO2 reduction targets and we are helping to do this through Research and Technology our expanding network of worldwide value chains and supporting the EU commission towards its target of four percent of biofuel for aviation by 2020."

"We are all committed to take a leading role in the development of technology programs that will facilitate aviation biofuels development and actual application faster than if we were doing it independently," said Paulo Cesar Silva. "Few people know that Brazil's well known automotive biofuels program started within our aeronautical research community, back in the seventies, and we will keep on making history."

The collaboration agreement supports the industry's multi-pronged approach to continuously reduce the industry's carbon emissions. Continuous innovation, spurred by competitive market dynamics that push each manufacturer to continuously improve product performance, and air traffic modernization, are other critical elements to achieving carbon-neutral growth beyond 2020 and halving industry emissions by 2050 based on 2005 levels.

"Having these three aviation leaders set aside their competitive differences and work together in support of biofuel development, underscores the importance and focus the industry is placing on sustainable practices," said ATAG Executive Director Paul Steele. "Through these types of broad industry collaboration agreements, aviation is doing all it can to drive measurable reductions in carbon emissions, while continuing to provide strong global economic and social value."

All three companies are affiliate members of the Sustainable Aviation Fuel Users Group (www.safug.org), which includes 23 leading airlines responsible for approximately 25 percent of annual aviation fuel use. Boeing and Embraer are already collaborating on how to establish a sustainable aviation biofuels industry in Brazil and exploring new technology pathways to broaden biofuel sourcing and availability. Boeing and Airbus are also active around the globe in helping to establish regional supply chains, while the three manufacturers have all supported numerous biofuel flights since global fuel standards bodies granted their approval for commercial use in 2011.

PR Newswire

FLY Leasing Acquires Two B737-700s

DUBLIN, Feb. 23, 2012 /PRNewswire/ -- FLY Leasing Limited (NYSE: FLY) ("FLY"), a global lessor of modern commercial jet aircraft, today announced that it has acquired two Boeing 737-700 aircraft on lease to GOL Airlines, a leading low-cost carrier in Brazil.

"We continue to uncover attractive opportunities to acquire aircraft that fit well with FLY's fleet and align with our strategy of pursuing opportunistic growth," said Colm Barrington, CEO of FLY. "The purchase of these two Boeing 737-700s was financed with limited-recourse debt, further demonstrating our extensive banking relationships and ability to finance attractive growth opportunities in this environment."
FLY now has a fleet of 111 commercial aircraft on lease to 54 airlines in 29 countries.


About FLY
FLY acquires and leases modern, high-demand and fuel-efficient commercial jet aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, one of the world's leading aircraft lease managers with more than 20 years of experience. For more information about FLY, please visit our website at www.flyleasing.com. 

PR Newswire

Air China to Open Shanghai-Chengdu-Mumbai Service on May 2

 BEIJING, Feb. 23, 2012 /PRNewswire-Asia/ -- As part of its effort to build its hub in China's southwestern city of Chengdu, Air China will open a Shanghai-Chengdu-Mumbai route on May 2, 2012.
(Logo: http://photos.prnewswire.com/prnh/20080625/CNW017LOGO )

With the introduction of the new service, Mumbai will be the 10th city accessible by Air China's flights from Chengdu; the other cities include Tokyo, Nagoya, Seoul, Singapore, Bangalore, Kathmandu, Karachi, Taipei China and Hong Kong China. The four weekly flights, CA429/430, will be offered with A319 by Air China's southwestern offshoot.

Mumbai is the capital of the Indian state of Maharashtra. Known as India's "west gateway", it is the country's largest port and important hub of transportation. As an economic center and industrial base, Mumbai boasts Asia's longest "Gold Market Street". It's the birthplace of India's textile industry and one of the world's most important textile products exporters.

About Air China

Air China is China's only national flag carrier and a Star Alliance member. Using a fleet of 306 Airbus and Boeing aircraft, we run 289 routes serving 30 countries and regions. Thanks to our admission to the Star Alliance, our route network, with Beijing as its hub, coupled with the even stronger network of the Star Alliance, is able to place 1,160 destinations in 181 countries within our reach.
PhoenixMiles is our frequent flyer program that allows our loyal customers to accrue mileage and request awards in our worldwide system. Air China's frequent flyer program has a membership of 17 million.
In 2011, Air China was featured in the Top 500 World Brands rankings for the fifth consecutive year. For more information, please visit our website www.airchina.com.

PR Newwire 

DIVERSITY OF CUSTOMER BASE AND IMPROVING BUSINESS PERFORMANCE HIGHLIGHT STRONGEST QUARTER FOR CIRRUS SINCE 2008

DULUTH, Minn., Feb. 22, 2012 /PRNewswire/ -- On February 22, 2012, the General Aviation Manufacturers Association (GAMA) released the industry's fourth quarter and complete 2011 shipment and billings summary. "Shipments declined in all three industry segments from the previous year, but the declines reached single digits which indicate general aviation is reaching the trough in this cycle," said GAMA Chairman, Caroline Daniels. "A majority of the market fundamentals are moving in the right direction. Corporate profits remain at record high levels, the used market and flight activity made year over year improvements and emerging markets are driving new sales. Like last year, our greatest concern remains the lack of financing. Latent demand in the market exists and an ease in the credit markets could help boost our industry into positive growth once again."

CIRRUS DELIVERS 89 SR-SERIES AIRCRAFT TO A DIVERSE MIX OF DOMESTIC AND INTERNATIONAL CUSTOMERS

In the fourth quarter of 2011, Cirrus Aircraft delivered more airplanes than in any quarter since the end of 2008, resulting in its strongest performance of the past 12 quarters. Todd Simmons, Executive Vice President, Sales and Marketing at Cirrus Aircraft noted, "Several factors came together in the fourth quarter to make it one of the strongest in recent memory. It's a source of pride to the Cirrus team in Duluth, Grand Forks and around the globe that with each successive quarter we are creating a stronger and more durable aircraft business."

As previously reported, twenty SR20 aircraft were completed during Q3'11 with final delivery taking place to the Civil Aviation Flight University of China (CAFUC) in Luoyang, China in Q4.
Simmons continued, "Favorable depreciation rules in the U.S. unquestionably helped drive domestic sales in late 2011. In fact, U.S. deliveries exceeded our expectations by year end. Cirrus is also benefitting from growth in the institutional side of our business, as flight schools and governments from around the world are renewing their fleets with the most capable aircraft with the latest safety and cockpit technologies. We are pleased that these new partners recognize that Cirrus is in the unique position to meet those needs."
Simmons added, "At the same time, we are cautious about ongoing economic uncertainty in Europe. As we have grown our global footprint, we also have more exposure to changing conditions in certain regions. While we keep a sharp eye on Europe, business remains more consistent in Latin America and we see potential for faster growth in China, Asia and Australia." 

CIRRUS AIRCRAFT HIGHLIGHTS FROM GAMA DATA(1): FOURTH QUARTER 2011

• Cirrus Increased its single engine piston aircraft market share by two points to 35 percent in 2011, an all time high.(2)
• Cirrus increased its SR22/SR22T comparable market share by five points to 73 percent in 2011, an all-time high.(3)
• Cirrus increased its SR20 comparable market share by three points in 2011, as the preference for the SR20 is growing as both a trainer and personal transportation airplane.(4)
• Cirrus delivered the most certified single engine piston airplanes of any general aviation manufacturer in 2011.(2)
• The SR22/SR22T family of aircraft remains the best-selling four-place airplane in the world for now 10 years in a row.

SEATING FOR FIVE, GLOBAL WEATHER, INTEGRATED PHONE, TEXT/EMAIL MESSAGING AND NEW INTERIOR AND EXTERIOR OPTIONS HIGHLIGHT THE 2012 CIRRUS AIRCRAFT SR-SERIES

On January 10, 2012, Cirrus introduced a range of compelling new features on the SR-series line of aircraft. New 60/40 Flex Seating™ offers seating for three in a redesigned back seat allowing for five total passengers on board. The new back seats also feature three-point seat belts for greater comfort, can recline in three positions, can secure child seats via the automotive style LATCH system and completely fold down for maximum cargo carrying options.

With Perspective Global Connect™, Cirrus pilots can now make phone calls and send text and email messages in flight. Outside the U.S., graphical weather is now available via Global Connect. Other new 2012 features include the GMA350 audio panel from Garmin, new interior and exterior color, materials and schemes and new personalization options.
The Vision SF50 personal jet remains the primary new aircraft research and development project at Cirrus. The next public and media program update is scheduled for Q1'12.

(1) Does not include Beechcraft Q4'11 numbers, not available at time of report.(2) FAR Part 23 certified aircraft. "Light Sport Aircraft" not included.(3) Includes Cessna 182, Cessna 182T, Cessna Corvalis TT, Mooney.(4)Includes the Cessna 172, Cessna 182, Cirrus SR20, Diamond DA40, Piper Warrior, Piper Arrow.

PR Newswire

Carrier thanks Civil Aviation Administration of China for approving expanded codeshare agreement on Detroit, Seattle flights to Beijing

 ATLANTA, Feb. 22, 2012 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today announced expanded codeshare agreements with China Eastern and China Southern airlines, two of the largest carriers in the People's Republic of China, which will provide more options for customers traveling between the United States and China.
(Logo: http://photos.prnewswire.com/prnh/20090202/DELTALOGO )
The agreements, recently approved by the Civil Aviation Administration of China, will allow both Chinese carriers to place their codes and flight numbers on Delta-operated flights between Seattle and Beijing. In addition, China Eastern will place its code and flight numbers on Delta-operated flights between Detroit and Beijing.
"We thank the Civil Aviation Administration of China for approving our expanded partnership with China Eastern and China Southern, which provides significant new options for customers of all three carriers and will enhance travel and trade between our nations," said Vinay Dube, Delta's senior vice president – Asia Pacific.
The airlines' agreement already allows China Eastern to codeshare on Delta's flight between Detroit and Shanghai; and allows Delta to codeshare on China Eastern-operated flights from New York and Los Angeles to Shanghai as well as China Southern's service between Los Angeles and Guangzhou.
In addition, once the expanded codeshare is implemented, Delta and China Eastern will provide codeshare service to 34 cities within the U.S and China, while Delta and China Southern will provide codeshare to 18 cities in the two nations.
China Southern and China Eastern are both members of the SkyTeam international alliance, which also includes Delta. Later this year, Xiamen Airlines, which operates a network of domestic and regional services throughout China and Asia and whose major shareholder is China Southern, also will join SkyTeam.
The new codeshare approvals pave the way for increased cooperation that will enable Delta and its Chinese partners to jointly develop improved services for the mutual benefit of their customers.

PR Newswire 

Canada's largest airline continues to fly high with advanced analytics and business intelligence from Teradata

TORONTO, Feb. 22, 2012 /PRNewswire/ -- As the airline industry continues to face the headwinds of rising fuel prices, challenging competition and an uncertain economy, Air Canada is redoubling its use of integrated data warehousing as a means to compete effectively. Canada's largest airline has purchased a new Teradata Data Warehouse Appliance that runs the powerful and agile Teradata Database and renewed its Teradata managed services agreement. With the new system in place, Air Canada will be able to decommission legacy independent data marts currently used to support revenue and operational management and migrate these applications to the Teradata integrated data platform.
(Logo:  http://photos.prnewswire.com/prnh/20090909/TERADATALOGO )

The decision to make the upgrade and move towards a more fully integrated data environment was based on Air Canada's experience with its current Teradata Data Warehouse Appliance and with Teradata Professional Services in the day-to-day management of the integrated data warehouse.
"The combination of the performance and stability of the platform and the quality of Teradata's professional services, gave us the confidence that Teradata is our best choice to continue our data mart consolidation and migrate more of our strategic data over to the new Data Warehouse Appliance," said Marc Constantineau, manager, Data Management Center, Air Canada.

The new platform is a continuation of the airline's strategic approach to move from independent data marts to an enterprise data warehouse (EDW). Information quality, speed of delivery and reduced costs were essential to Air Canada's decision, said Constantineau. As the company evolves its analytics platform to an EDW, it will add more data sources to its existing revenue and yield management data, such as incorporating ticket data and operational flight information. Air Canada is leverag­ing the Teradata Travel Industry Logical Data Model as a framework to guide the integration of information, thus reducing development time and costs.
"Air Canada has an exciting vision for its business, and that in turn fuels its dependence on expanded analytics.  What started as an initiative for a single business department user has grown to encompass multiple business functions now and represents a strategic collaboration with IT. Teradata has proven that the business can have improved analytics, while IT has reduced costs, and both can have confidence in scalability of their data warehouse to add more data and new applications in the years ahead," said Industry Marketing and Solutions leader for the travel industry at Teradata, Peeter Kive

PR Newswire

Pinnacle Airlines Corp. Releases January Performance Data

Photo Credit: PR Newswire.

MEMPHIS, Tenn., Feb. 17, 2012 /PRNewswire/ -- Pinnacle Airlines Corp. (NASDAQ: PNCL) today released capacity and operational results for its subsidiaries for January 2012.

	January 2012 Performance
	2012		2011		Change
Passengers	1,306,168		1,372,069		(4.8)%
Available Seat Miles (000)	825,757		961,919		(14.2)%
Revenue Passenger Miles (000)	553,855		623,513		(11.2)%
Load Factor	67.1%		64.8%		2.3 Pts.
Block Hours	56,472		69,408		(18.6)%
Departures	37,026		42,588		(13.1)%
Stage Length	402		431		(6.7)%
Fleet
CRJ-200	142		145		(2.1)%
CRJ-900	57		57		0.0 %
Q400	31		26		19.2 %
SAAB 340	31		59		(47.5)%

Pinnacle Airlines Corp. conducts the majority of its operations under capacity purchase agreements. Fluctuations in total Passengers, Revenue Passenger Miles (RPMs), and Load Factor do not affect revenue earned by Pinnacle under these types of agreements.
About Pinnacle Airlines Corp.



Pinnacle Airlines Corp. (NASDAQ: PNCL), a $1 billion airline holding company with 8,000 employees, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Flying as Continental Express, Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 62 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at nine major U.S. airports. Visit www.pncl.com for more information.

PR Newswire


Quick Analysis

Given a reported figure of 1,306,168 passengers, using a 31day op schedule, that's an average of 42,134 Pax daily. More so, looking at the ASM and RPM, for every 1 ASM, you have  0.67 RPM. Convert that 0.67 into % and you have a 67.1% load factor. 

With block hrs of 56,472 and departures of 37,026, for every 1 departure, each flight utilized 1.53hrs. The stage-length explains the avg distance flown (nm). Therefore, for every 1 departure, an average of 402nm (463miles) was flown. Keep in mind that this is a totaled average of both the faster and slower jets.