AMR Reports $19-Million Loss in Quarter

FT. WORTH — American Airlines’ parent AMR Corp. posted a $19.3-million first-quarter loss Wednesday, blaming higher fuel and labor costs for its first loss in more than two years.

“Our results can only be called unsatisfactory,” said Chairman Robert L. Crandall.

AMR, whose American Airlines is the nation’s biggest airline, is the first of the nation’s major airline companies to report earnings for the traditionally slow first quarter. Analysts expect most airlines to report losses or smaller profit than last year. AMR’s loss was less than many industry analysts had expected.

AMR reported revenue of $2.69 billion. In the same period last year, AMR had a profit of $156.7 million on revenue of $2.45 billion.

Expenses increased by $402.1 million, the company said, with 26.5% coming from higher fuel prices. Fuel jumped from $322.3 million in the year-ago quarter to $428.7 million this year.

Labor costs also rose $85 million while other expenses were up $210.7 million.

American Airlines, which accounts for almost 94% of AMR’s revenue, lost $23.6 million, contrasted with to a profit of $158.4 million last year. The loss wiped out profit from other AMR subsidiaries, which include American Eagle commuter airline and several subsidiaries related to the travel and information industries.