American Airlines 2008 Annual Report Download - page 42

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39
2007 Compared to 2006 The Company’s revenues increased approximately $372 million, or 1.6 percent, to
$22.9 billion in 2007 compared to 2006. American’s passenger revenues increased by 2.1 percent, or $360 million,
despite a capacity (available seat mile) (ASM) decrease of 2.4 percent. American’s passenger load factor
increased 1.4 points to 81.5 percent and passenger revenue yield per passenger mile increased 2.8 percent to
12.75 cents. This resulted in an increase in passenger revenue per available seat mile (RASM) of 4.6 percent to
10.39 cents. In 2007, American derived approximately 63 percent of its passenger revenues from domestic
operations and approximately 37 percent from international operations. Certain 2007 and 2006 passenger
revenues were reclassified to conform with the current presentation, as described in Note 1 to the consolidated
financial statements. Following is additional information regarding American’s domestic and international RASM
and capacity:
Year Ended December 31, 2007
RASM
(cents)
Y-O-Y
Change
ASMs
(billions)
Y-O-Y
Change
DOT Domestic
10.3
3.4%
108.5
(2.6)%
International
10.6
6.6
61.4
(2.0)
DOT Latin America
11.1
6.7
29.6
0.9
DOT Atlantic
10.3
2.7
25.0
(0.5)
DOT Pacific
9.8
18.6
6.8
(17.1)
Regional Affiliates’ passenger revenues, which are based on industry standard proration agreements for flights
connecting to American flights, decreased $32 million, or 1.3 percent, to $2.5 billion as a result of decreased
capacity and load factors. Regional Affiliates’ traffic decreased 1.2 percent to 9.8 billion revenue passenger miles
(RPMs), while capacity decreased 1.0 percent to 13.4 billion ASMs, resulting in a 0.2 point decrease in passenger
load factor to 73.4 percent.
Cargo revenues decreased 0.2 percent, or $2 million primarily as a result of lower freight traffic.
Other revenues increased 2.4 percent, or $46 million, to $1.9 billion due in part to increases in certain passenger
service charges and higher passenger volumes.