American Airlines 2009 Annual Report Download - page 38

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35
Results of Operations
The Company recorded a net loss of $1.5 billion in 2009 compared to a net loss of $2.1 billion in 2008. The
Company’s 2009 loss is primarily attributable to a significant decrease in passenger revenue due to lower traffic
and passenger yield. The 2009 results were also negatively impacted by a net amount of $107 million in special
items, restructuring charges and a non-cash tax item. Special items of $184 million include the impairment of
certain route and slot authorities, primarily in Latin America, and losses on certain sale leaseback transactions.
Restructuring charges for 2009 were $171 million and related to announced capacity reductions, including the
grounding of the Airbus A300 fleet and the impairment of certain Embraer RJ-135 aircraft. Also included in 2009
results is a $248 million non-cash tax benefit resulting from the allocation of the tax expense to other
comprehensive income items recognized during 2009. The restructuring charges, the non-cash tax item and the
route impairment are described in Note 2, 8 and 11, respectively, to the consolidated financial statements.
The Company recorded a net loss of $2.1 billion in 2008 compared to net earnings of $456 million in 2007. The
Company’s 2008 results include an impairment charge of $1.1 billion to write the McDonnell Douglas MD-80 and
Embraer RJ-135 fleets and certain related long-lived assets down to their estimated fair values, a $71 million
accrual for employee severance cost and a $33 million expense related to the grounding of leased Airbus A300
aircraft prior to lease expiration, all in connection with announced capacity reductions and included in Special
charges in the Consolidated Statements of Operations. In addition, the Company’s 2008 results include the sale
of American Beacon for a net gain of $432 million included in Miscellaneous-net on the Consolidated Statements
of Operations and the impact of a pension settlement charge of $103 million for one of the Company’s defined
benefit plans included in Wages, salaries and benefits on the Consolidated Statements of Operations.
The Company’s 2007 results reflected an improvement in revenues somewhat offset by fuel prices and certain
other costs. The 2007 results were impacted by productivity improvements and by cost reductions and the impact
of several items including: a $138 million gain on the sale of AMR’s stake in ARINC included in Other Income,
Miscellaneous – net, a $39 million gain to reflect the positive impact of the change to an 18-month expiration of
AAdvantage miles included in Passenger revenue, and a $63 million charge associated with the retirement and
planned disposal of 24 McDonnell Douglas MD-80 aircraft and certain other equipment that previously had been
temporarily stored included in Other operating expenses.