American makes fourth annual loss
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.AMERICAN Airlines, the industry-leading US carrier, lost money for the fourth year running in 1993, the result of tough competition and a costly strike in the final quarter of the year.
American's chief executive, Robert Crandall, announcing unexpectedly heavy losses for the fourth quarter, said the five-day strike by flight attendants in November cost it some dollars 190m, dollars 30m more than originally estimated.
The airline lost dollars 253m, or dollars 3.55 a share, in the final quarter, giving it an operating loss for the year of dollars 110m, or dollars 2.23. The loss for 1993 was double Wall Street's expectations, and brings its losses since 1989 to dollars 1.34bn.
The impact of the strike, which ended with US government intervention, 'turned the profit we had generated earlier in the year into a loss for the year as a whole,' Mr Crandall said. The final quarter results included a one-off charge of dollars 62m to cover settlement costs.
Despite promising sales during the first nine months of the year, annual revenue was only dollars 12.8bn, an increase of only 10 per cent over 1992's dismal results. Mr Crandall promised that the airline's management would do all it could to develop the spirit of co-operation with the carrier's trade unions.
American's principal US rival, United Airlines, recently agreed to a buyout plan that will give its employees majority ownership of the carrier later this year. American's shares fell 75 cents to dollars 69.125 on the disappointing news.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments