On September 11, terrorists crash two American Airlines airplanes, one into the World Trade Center in New York and the other into the Pentagon.
Later that fall American begins laying off employees in the aftermath of the terrorist attacks and an industry downturn.
An American Airlines Airbus A300 crashes on November 12 in Queens, New York, killing 265.
Net income for year: -$1.76 billion.
2002: AMR cuts flights, parks airplanes and furloughs employees as the post-September 11 recession continues. AMR revenues drop $1.6 billion, or 9.2 percent.
Net income for year: -$3.51 billion.
2003: February: AMR goes to employee groups and warns of imminent bankruptcy unless unions accept $1.6 billion in cost cutting and improved productivity. Three major unions agree to concessions. An uproar arises about a plan to protect pensions of senior management, leading to the resignation of chairman and CEO Donald J. Carty. President Gerard Arpey replaces him as CEO; board member Edward A. Brennan becomes chairman.
Company announces the “Turnaround Plan,” designed to return the company to profitability. AMR reports a third-quarter net profit of $1 million, the company’s first profitable quarter since fourth quarter 2000.
Net income for year: -$1.23 billion.
2004: AMR estimates that its cutbacks in 2003 reduced its operating expenses by $4 billion, including $1.8 billion from employees.
Gerard Arpey adds the chairman’s role.
Net income for year: -$781 million.
2005: Rising oil prices worry the company.
AMR sells 13 million shares for $223 million.
Net income for year: -$893 million.
2006: Higher passenger loads and rising fares help push AMR to its first operating and net profits in six years.
American Airlines begins contract talks with Allied Pilots Association in September; talks are ongoing in 2011.
AMR sells 15 million shares for $400 million.
Net income for year: +$189 million, its first annual profit since 2000.
2007: The improved performance continues into 2007, with AMR stringing together six straight profitable quarters.
AMR announces intent to divest its American Eagle unit, an idea put on hold in 2008 and revived in 2010.
American Airlines begins contract talks with Transport Workers Union in November; talks still continue.
AMR sells 13 million shares for $497 million.
Net income for year: +$456 million.
2008: Rapidly rising fuel prices send airlines’ expenses soaring; AMR’s jet fuel bill rises from $6.7 billion in 2007 to $9 billion in 2008.
Fuel prices fall in latter 2008, but so does demand as country endures another recession.
American Airlines begins contract talks with Association of Professional Flight Attendants; talks still continue.
AMR sells 27.1 million shares for $294 million.
Net income for year: -$2.19 billion.
2009: AMR sells nearly 52 million shares for about $412 million, part of a “Big Bang Financing” that raises $5 billion through debt and equity.
Net income for year: -$1.47 billion.
2010: Unit revenues rise steadily from 2009’s depressed levels, making almost all US airlines except AMR profitable. But AMR does reduce its losses by about $1 billion and reports its first operating profit in three years.
TWU and American negotiators reach tentative agreements covering mechanics and related employees, others; union members turn down the deals.
Net income for year: -$471 million.
(The Dallas Morning News)
