American Airlines hit by record losses

American Corp., main office of American Airlines and American Eagle –the world’s largest air carrier- sustained the heaviest losses of its history with a record-breaking $3.5 billion in 2001.

In the last quarter of the year, its $529 million worth of losses were not as big as in the third quarter. However, the fleeting good news could not prevent the company from swaying in the red in a year labeled here as one of the worst ever in the history of aviation.

Earnings dipped by 8.8 percent and barely reached $17.2 billion. Don Carty, the company’s president and CEO, pinned the blame on meager overall growth figures, higher fuel prices and, above all, increasing global uncertainty.

The fear to fly following the 9/11 terrorist attacks is doing nothing but painting a blurrier picture for the downtrodden aviation industry. Experts indicate the company wasted $5.3 million a day in the course of the last quarter of the year.

Mr. Carty added the volume of losses is “unbearable” and the company won’t be able to keep flying unless this member of the Oneworld Alliance and owner of 1 percent of Iberia Airlines pushes down costs. After this first round of assessments, airline execs believe their company should sock away some $4 billion dollars a year to make ends meet.