Gas Pains for American Airlines: Fool by Numbers

On Oct. 19, American Airlines' parent AMR (NYSE: AMR  ) released earnings for its 2005 third quarter, which ended Sept. 30.

  • Net loss of $0.93 doesn't include one-time items. But even with one-offs excluded, American only managed a $0.58 loss, which is still higher than Street estimates.
  • A check of the income statement shows fuel costs were up nearly 50% over last year's third quarter. American had better not pin its hopes on a drop in oil prices the way United has.
  • It's hard to see how this company will succeed long-term when a record-high passenger load factor -- at 81.2% during Q3 -- still results in losses. No wonder so many Fools hate the airline industry.

(Figures in millions, except per-share data)
Income Statement Highlights(What's this?)

Avg. Est.

Q3 2005

Q3 2004

% Change

Sales

$5,462

$5,485

$4,762

+15.2%

Net Profit

--

$(153)

$(214)

N/A

EPS

$(0.45)

$(0.93)

$(1.33)

N/A



Margin Checkup(What's this?)

Q3 2005

Q3 2004

Change

Gross Margin

34.68%

36.01%

-1.34%

Op. Margin

0.71%

-0.57%

+1.28%

Net Margin

-2.79%

-4.49%

+1.70%



Balance Sheet Highlights(What's this?)

No balance sheet data provided. (Lame!)

Cash Flow Highlights(What's this?)

No cash flow data provided. (What-ever!)

Related Companies:

  • Continental (NYSE: CAL  )
  • Delta
  • JetBlue (Nasdaq: JBLU  )
  • Northwest
  • UAL Corp.
  • US Airways (NYSE: LCC  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

The Motley Fool has kicked off its ninth annual Foolanthropy campaign! Nominate your favorite charities on ourFoolanthropy discussion boardthrough Nov. 1. For guidelines on what makes a charity Foolish, visitwww.foolanthropy.com.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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