Delta, American report third quarter losses


06:31, October 16th 2008
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New York - Two of the United States' largest airlines reported losses on continuing operations on Wednesday amid ongoing pressures from high fuel costs and increasing competition from discount carries.

American Airlines, the nation's largest, lost 360 million dollars on ongoing operations in the third quarter, parent company AMR said. With special one-time items, earning amounted to 45 million dollars, it said.

Revenues rose rose 8 per cent to 6.4 billion dollars, the Fort Worth, Texas-based airline said. That was not enough to overcome the company's 1.1 billion dollar fuel bill.

AMR also announced Wednesday that it would buy up to 100 new long- range Boeing 787 Dreamliners. The planes, with room for up to 290 passengers, retail for up to 200 million each, but such a large order would likely receive a discount.

A firm order of 42 planes is to be filled between 2012 and 2018, and American would then have the option to buy up to 58 more between 2015 and 2020.

Third-largest US air carrier Delta Air Lines said it lost 50 million dollars in the third quarter. The loss compares with the 220- million-dollar profit in the same quarter of 2007, but represented a slowdown in the airline's red ink after the company had posted 7.4 billion dollars in losses in the first six months of the year.

Revenues in the third quarter came to 5.7 billion dollars, up 9 per cent year-on-year. The Atlanta, Georgia-based airline said its fuel bill in this year's third quarter were 800 million dollars higher than in last year's third quarter.

Delta is to acquire smaller rival, Northwest, in the fourth quarter, making it the world's largest airline by passenger volume.

US carriers have been forced to cut routes, eliminate positions and institute new fees to cope with the higher costs.



© 2007 - 2009 - DPA/eFluxMedia
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