When American Airlines filed for bankruptcy earlier this year it shook the industry and many local economies. As one of the biggest economic contributors in the Dallas-Fort Worth area, American Airlines job layoffs and cutbacks for consumers posed a great threat to locals. As more terminal leases were cancelled and routes eliminated, many employees and consumers have stood by watching one of the biggest bankruptcy cases unfold. After serious talks of a merger with another airline, American Airlines is reporting some good news for the first time in months.
Holding Out Hope
Having reported a profit for the first time since their filing late last year, American Airline officials were pleased by their $33 million profit in June. Profits would have been much higher, at around $54 million, had the company not had to shell out close to $20 million for fees related to their debt restructuring efforts. This profit sends promising signs to company executives who are still working to regain control over company finances without succumbing to a buyout.
Although last month’s profits were promising, it isn’t likely to end any time soon. Originally planned to exit Chapter 11 bankruptcy by the end of 2012, it is now estimated that the bankruptcy case could extend into 2013. Despite steep benefit and pension cuts, American employees are continuing to advocate for their remaining contracts to go untouched as the process comes to a close next year.