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American Airlines parent in the red for quarter

Business Materials 16 January 2008 22:22 (UTC +04:00)

( dpa )- American Airlines' parent company AMR Corporation said Wednesday it recorded losses in the fourth quarter of 2007 amid rising fuel costs.

The Fort Worth, Texas-based firm lost 69 million dollars, or 28 cents per share, in its first quarterly loss since early 2006. In the year-earlier period it recorded a profit of 17 million dollars, or 7 cents per share.

Revenues rose 5.3 per cent in the fourth quarter to 5.7 billion dollars.

AMR had profits of 504 million dollars for the year, more than double earnings of 231 million dollars in 2006. Revenue for the year rose 1.6 per cent to 22.9 billion dollars.

Rising oil prices have hit airlines hard and analysts predict losses from all major airlines in fourth quarter earnings. US airlines, several of which recently emerged from bankruptcy, could be shaken up by mergers in the coming weeks. Media reports have said Delta Air Lines is talks with both United and Northwest about a possible merger.

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