AMR Corp. (AMR) to Record $1.1-$1.2B Impairment in Q2 Related to Capacity Reductions; Will See $75-$100M Charge Related to Severance Costs
More News related to AMR
- American Airlines Renews Support for U.S. Hurricane Relief
- American Airlines (AMR) Reports August Traffic Fell 2.9% Y/Y
- American Eagle Airlines Reports August Traffic
- American Airlines Reports August Traffic
- 'American Airlines Living Your Dream' Profiles Miami Business Leader James A. Champion
In a Form 8-K filing after the close, AMR Corp. (NYSE: AMR) today announced that it will reduce capacity in light of unprecedented high fuel costs and the other challenges facing the industry.
Related to the capacity reductions, AMR expects to record a non-cash impairment of $1.1-$1.2 billion in its Q2 in order to write these and certain related long-lived assets down to their estimated fair value. No portion of the impairment charge will result in future cash expenditures.
In addition, AMR estimates that it will reduce its workforce commensurate with previously announced system-wide capacity reductions by December 2008. As a result, AMR will record a charge of approximately $75-$100 million for severance related costs, a portion of which may be recorded in Q3.
AMR Corporation (AMR), through its subsidiaries, operates as a scheduled passenger airline in the United States.
Related Categories
Corporate NewsGuidance
Stocks Mentioned
+0.16Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
