American Airline Financial Essay

Submitted By ned1988
Words: 434
Pages: 2

had a successful hedge in 2005 , just not the phenomenal success that Southwest managed to achieve during a year of major jet fuel price increases . American CEO Gerard Arpey believes in the earning ability of the company , that with consistently solid revenues , the company will fight its way back into sustained profitability . However , the CEO still cites that stubbornly high fuel costs remain to be a major obstacle for the business and both companies stress the need for higher levels of efficiency and lower over-all operational costs

There was optimism in either CEO , and American recently released earnings report for the 2nd quarter of the current year - 2006 American just recently realized a 291 million dollar profit according to its quarterly results , when the 2005 annual report was filled with gloomy statements such as persistent factors limiting revenue growth and , ultimately , profitability . Interestingly , Southwest CEO is stringent in meeting pension fund obligations , revealing that 22 million was paid out to its pension fund , bringing the contribution to 310 , sending out a strong signal that American is not backing out to provide support for its employees . In 2005 , the CEO also commended the 2 decrease in unit costs excluding fuel and special items , a testament to the Turnaround Plan launched since the start of the revenue environment degradation . The savings generated through collaborative efforts has lowered costs and , for the first time since the year 2000 , the company managed to secure an operating profit excluding special items . American 's CEO still describes the company 's financial performance as dismal and wanting , but has a firm commitment to implement any and all changes that…