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American Airlines posts $545 million loss on higher labor costs while rivals post big profits
American Airlines is reporting a $545 million loss for the third quarter due to higher labor costs
American Airlines is reporting a $545 million loss for the third quarter in contrast with the huge profits posted by its two closest rivals.
American said its results were dragged down by $983 million in charges related to a new labor contract with its pilots, but United Airlines and Delta Air Lines reached similar deals with their pilots and still earned $1.1 billion each in the quarter.
Labor costs at American jumped 17%, an increase of nearly $600 million, which was roughly offset by lower fuel prices than a year ago.
American's revenue was roughly flat with last summer, compared with 12% and 11% increases at United and Delta.