American Airlines blames reorganisation for  $US238m loss
American Airlines blames reorganisation for $US238m loss

American Airlines has turned in a $US238 million ($230.45 million) third-quarter loss, but blamed the shortfall on large costs related to its ongoing bankruptcy reorganisation.

Before including costs for the bankruptcy process and employee severance, American's parent AMR Corp said it scored a $US110 million operating profit, reversing a loss on the same basis from a year earlier.

Operating income rose to $US51 million from $US39 million a year earlier, as fuel and interest costs fell while salary and benefit costs held stable.

The company's passenger revenue per seat mile domestically and internationally rose 4.7 per cent on its American Airlines and American Eagle carriers, and passenger yield rose 3.5 per cent, as it cut back on less profitable flights.

Domestic load factor was virtually flat but the income yield rose four per cent.

"These results were driven by the best unit revenue growth in the industry in each month of the quarter, and by record load factor, as we continue to make progress in our restructuring for a successful future," said AMR chief executive Tom Horton.

Texas-based American has been under bankruptcy reorganisation since last year as it fights to cut staff costs to better compete with rivals, many of which have undergone the same process.

In a separate statement, American announced plans to hire more than 1,500 new flight attendants over the next year after receiving an "overwhelming response" by current flight attendants to the company's voluntary separation scheme.

"For the first time in over a decade, American is seeking to add more than 1500 new flight attendants who we believe will bring new perspectives to the airline," said Lauri Curtis, the airline's Flight Service vice president.

Hiring will begin in November, the company said.

On Tuesday the airline asked for another month's extension to achieve a sustainable deal with creditors.

The West Australian

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