Representing the Flight Attendants
of American Airlines

Representing the Flight Attendants of American Airlines

1.16.08 – (LAA) – AMR Reports 4th Quarter Loss

Today is January 16, 2008. This is Tommie Hutto-Blake, APFA President with a special APFA Hotline.

This morning AMR reported a fourth quarter loss of $69 million bringing the AMR annual earnings for 2007 to $504 million, $365 million of which is attributed to American Airlines. Although this is the first time since 2000 that AMR has reported a profit two years in a row, the amount does not trigger the profit sharing formula as outlined in the AA/APFA Restructuring Agreement, Attachment P. Under Attachment P, AA must clear $500 million in order to generate a payout.

As a result, AA has decided to hand its 72,000 employees a check for $800, minus applicable taxes, as <and I quote AMR CEO Gerard Arpey> “a tangible way of saying ‘thank you’ for all that our employees did for our company in a challenging year.”

As we approach our first official meeting at the bargaining table in a few months time, APFA has every intention of thanking management for this small “gesture” totaling one-percent of the $80,000 on average that every single AA flight attendant has foregone since 2003. We will express our gratitude with our collective resolve to share in the real gains that have, to date, only been enjoyed by less than 1,000 AMR employees in the form of executive bonuses.

Meanwhile, Mr. Arpey and his four top officers are set to receive more than $9 million in April when the next executive bonus windfall takes place for what will be the third year in a row. At todayís AMR stock price of $13.57 a share, $70 million total will go to roughly the same 800 or so senior managers who were rewarded last year and the year before; all while the rest of us are expected to continue working more hours for less pay with little rest and no food. It is time for this injustice to come to an end.

$800 will simply not cut it. It is too little too late. Your Negotiating Team has prepared a survey and we must hear from you. Please take a moment to fill out the questions via APFA’s Web site and let the Team know exactly what your priorities are for this next round of bargaining with American Airlines.

Also, take a moment to read the press release APFA issued today. It is available online as well. Thank you for calling the APFA Hotline.



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