American report $1.4bn quarter loss
17.07.08
American Airlines, the world's biggest airline, has reported a $1.4bn (£700m) quarterly loss as the industry struggles with record fuel costs and weakening demand. The airline's second-quarter loss includes a $1.1bn one-off charge to write down the value of dozens of aircraft that are being retired. However, on an underlying basis it still lost $284m.
AA's chief executive, Gerard Arpey, said: ‘Our company continues to be severely challenged by the fuel crisis that has afflicted our entire industry, and we expect these difficulties to continue for the foreseeable future.'
The airline is speeding up efforts to retire aircraft, with 34 Airbus jets to be scrapped by the end of next year, rather than the end of 2012. The airline is also accelerating the replacement of older planes with more modern, fuel-efficient models and has shelved the planned sale of its regional subsidiary, American Eagle, until conditions improve.
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