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AMR Cash, Short-Term Investments Drop by $535 Million

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Sept. 28 (Bloomberg) -- AMR Corp.’s unrestricted cash and short-term investments fell by $535 million in August, the parent of American Airlines Inc. said in an operating report.

The net loss for the month was $82 million, according to the report filed yesterday in U.S. Bankruptcy Court in Manhattan. Contributing to the loss were $53 million of interest expenses and $86 million in reorganization items, including $18 million in professional fees. Operating income was $55 million on operating revenue of $2.19 billion.

Revenue in August declined 6 percent from July’s $2.33 billion. In July, operating income was $240 million.

Operating activities consumed $304 million in cash in August, according to the consolidated cash flow statement in the operating report. Cash and short-term investments of $4.84 billion at the end of July declined to $4.3 billion by Aug. 31. AMR had another $846 million in restricted cash.

AMR, based in Fort Worth, Texas, has used bankruptcy powers to shed 32 aircraft in the mainline fleet. With negotiating leverage provided by Chapter 11, the company said it “revised economic terms” for 155 planes. It agreed to retain 340 in the mainline fleet.

AMR listed assets of $24.7 billion and debt totaling $29.6 billion in the reorganization begun in November.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bill Rochelle in New York at wrochelle@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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