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American Losses Grow as it Reshuffles Management
The parent of American Airlines has disclosed a management reshuffle alongside a net loss of $1.98 billion for 2011 as the carrier continues efforts to restructure under bankruptcy protection. The changes are the second shake-up since Tom Horton took over as chief executive last November, when the third-largest U.S. airline by traffic filed for Chapter 11.

A fourth-quarter loss of $1.1 billion compared with a $97 million deficit a year earlier, underscoring the challenges facing AMR Corp. as rivals that have already used the bankruptcy process to cut costs reported profits despite the latest spike in fuel costs.

AMR's fourth straight full-year loss included $917 million in special charges and compared with profits of $864 million at United Continental Holdings Inc. and $854 million at Delta Air Lines Inc.

Mr. Horton is seeking to trim AMR's annual costs by $2 billion and boost revenue by $1 billion a year, shedding 13,000 jobs in the process as part of a turnaround plan that has been lambasted by leaders of its main unions. (A4A)

(published on 02/20/12)

 

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