DALLAS (AP) — American Airlines made a profit in the fourth quarter, a big turnaround from a year ago, as it slashed labor costs and reaped other benefits from its trip to bankruptcy court.
Parent company AMR Corp. said Wednesday that net income was $262 million compared with a loss of $1.1 billion in the fourth quarter of 2011.
Labor was AMR's second-biggest expense behind only fuel. The company chopped spending on wages and benefits by 13 percent as it eliminated thousands of jobs and reworked its union contracts to cut costs.
One-time gains such as an income tax benefit and the settlement of a business dispute also helped greatly. Without those, AMR would have lost $88 million.
on the backs of their employees who have had to take draconian concessions. They also took cuts in 2003 to save the company from bankruptcy, with no snapback provisions. Gotta make sure there is enough money to pay the bonuses for all that "top talent" who are driving American Airlines into the ground. No wonder the employees want to merge with US Airways.