AMR Corporation's Performance in November 2006

Strategic Insights -

In November 2006, AMR Corporation's main subsidiary, American Airlines, reported a 1.1% decline in traffic, or revenue passenger miles, compared to the same period in the prior year. The airline's monthly capacity decreased by 3.7% to 13.4 billion available seat miles. Despite this, the load factor, or the percentage of a plane filled with passengers, improved to 79.7% from 77.6% in the previous year. The shares of AMR Corporation were down by more than 1.1% in late morning trade.

Key Takeaways:

  • American Airlines, a unit of AMR Corp., reported a 1.1% decline in traffic, or revenue passenger miles, in November 2006 compared to the same period in the prior year.
  • The airline's monthly capacity decreased by 3.7% to 13.4 billion available seat miles in November 2006.
  • The load factor, or the percentage of a plane filled with passengers, improved to 79.7% in November 2006 from 77.6% in the previous year.
  • AMR Corporation's shares were down by more than 1.1% in late morning trade in November 2006.
  • The Amex Airline Index was down by about 0.4% to 58.95 points in recent trade in November 2006.
  • American Airlines serves about 150 destinations in the Americas, Europe, and the Pacific Rim through its hubs in Chicago, Dallas/Fort Worth, Miami, and San Juan, Puerto Rico.
  • American Airlines has code-sharing agreements with carriers such as China Eastern Airlines and Japan Airlines.
  • AMR Corporation owns commuter American Eagle and is part of the Oneworld global marketing alliance with British Airways, Cathay Pacific, Qantas, and others.

Statistics:

  • November traffic, or revenue passenger miles: 10.7 billion (down 1.1% from 10.8 billion in the same period in the prior year)
  • Monthly capacity: 13.4 billion available seat miles (down 3.7% from 13.9 billion in the same period in the prior year)
  • Load factor: 79.7% (up from 77.6% in the previous year)
  • Amex Airline Index: 58.95 points (down 0.4% in recent trade in November 2006)
  • Destinations served: about 150 in the Americas, Europe, and the Pacific Rim

Sources:

  • M2 PressWIRE, "Bellwetherreport.com" (5 December 2006)
  • M2 Communications Ltd
  • www.bellwetherreport.com
  • www.Hoovers.com
  • www.yahoo.com
  • www.associatedpress.com
  • www.marketwire.com
  • www.businesswire.com