American Airlines 2005 Annual Report Download - page 37

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34
REVENUES
2005 Compared to 2004 The Company’s revenues increased approximately $2.1 billion, or 11.1 percent, to
$20.7 billion in 2005 compared to 2004. American’s passenger revenues increased by 10.6 percent, or $1.6
billion, on a capacity (available seat mile) (ASM) increase of 1.2 percent. American’s passenger load factor
increased 3.8 points to 78.6 percent and passenger revenue yield per passenger mile increased 4.0 percent to
12.01 cents. This resulted in an increase in passenger revenue per available seat mile (RASM) of 9.3 percent to
9.43 cents. In 2005, American derived approximately 65 percent of its passenger revenues from domestic
operations and approximately 35 percent from international operations. Following is additional information
regarding American’s domestic and international RASM and capacity:
Year Ended December 31, 2005
RASM
(cents)
Y-O-Y
Change
ASMs
(billions)
Y-O-Y
Change
DOT Domestic 9.37 10.6% 115 (2.3)%
International 9.56 6.6 61 8.6
DOT Latin America 9.48 7.9 30 6.0
DOT Atlantic 10.08 9.0 24 6.7
DOT Pacific 8.12 (7.7) 7 30.1
The Company’s Regional Affiliates include two wholly owned subsidiaries, American Eagle Airlines, Inc. and
Executive Airlines, Inc. (collectively, AMR Eagle), and two independent carriers with which American has capacity
purchase agreements, Trans States Airlines, Inc. (Trans States) and Chautauqua Airlines, Inc. (Chautauqua).
Regional Affiliates’ passenger revenues, which are based on industry standard proration agreements for flights
connecting to American flights, increased $272 million, or 14.5 percent, to $2.1 billion as a result of increased
capacity and load factors. Regional Affiliates’ traffic increased 22.8 percent to 8.9 billion revenue passenger
miles (RPMs), while capacity increased 17.3 percent to 12.7 billion ASMs, resulting in a 3.2 point increase in
passenger load factor to 70.4 percent.
Cargo revenues decreased 0.5 percent, or $3 million, primarily due to a 0.5 percent decrease in cargo revenue
yield per ton mile. However, the cargo division saw a $49 million increase in fuel surcharges and other service
fees. These amounts are included in Other revenues which are discussed below.
Other revenues increased 18.3 percent, or $205 million, to $1.3 billion due in part to increased cargo fuel
surcharges, increased third-party maintenance contracts obtained by the Company’s maintenance and
engineering group and increases in certain passenger fees.