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U.S. airline industry reports deep figures

July 17, 2008 · Filed Under Airlines, Boeing Jet, airline industry 

HOUSTON / FORT WORTH (AP) - The major U.S. airlines continued to fly deep into the red figures. The parent company of the former Industries First , AMR Corporation, made in the second quarter of a loss of 1.4 billion U.S. dollars when Delta Air Lines remained under the bar a minus of 1.0 billion dollars. Delta is close to the merger with the smaller Northwest Air Lines to the then new world’s largest supplier after passenger numbers.

Savings through synergy Delta Airlines and Northwest (© Delta)

The entire U.S. industry is suffering because of the weak dollar, particularly under the current high oil prices. In addition, overcapacity and the economic downturn. “We expect that these difficulties in the foreseeable future continue,” said AMR CEO Gerard Arpey on Wednesday in Fort Worth (Texas). As AMR and Delta also reduce the competitors massive bodies, delete the route network and reduce the fleet. So far, the industry announced the reduction of about 20 000 jobs. Virtually all traditional U.S. suppliers last contributed to the loss zone.

For AMR, the loss in the second quarter excluding the special charges for 284 million U.S. dollars to a profit of 317 million U.S. dollars a year earlier. Sales rose by just over 5 percent to 6.2 billion U.S. dollars (3.9 billion euros). In response to the crisis will now AMR 90 jets and 37 regional aircraft by the end of 2009, yet the majority of 2008. They are part later by sparing aircraft to be replaced. AMR, the cuts already announced in May. Around 7000 and therefore eight percent of all jobs will be eliminated.

When Delta (Houston, Texas) was the result without depreciation of the dramatic fall in stock market value and the cost of job cuts with 137 million U.S. dollars even in the Plus. A year earlier, but the profit was 1.6 billion dollars. Sales rose by almost 10 percent to 5.5 billion U.S. dollars.

Delta lost view of the crisis within a year period approximately 75 percent of the stock market value. The AMR Group lost more than 80 percent. On Wednesday appealed both titles significantly since the numbers despite the losses better than expected by experts feared.

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