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Member, Beacon International Group, Ltd.
DALLAS-An early retirement program offered last year to some employees cost American Airlines Inc. $332 million on a pretax basis, according to fourth-quarter financial results released by the company last week.
In addition, losses stemming from an accident in Colombia last month cost the airline $42 million pre-tax (BI, Dec. 25, 1995), which also was recorded as a charge against fourth-quarter earnings.
AMR Corp., the parent company of American Airlines, recorded a total restructuring charge of $533 million for the fourth quarter of 1995.
This charge included costs associated with two early retirement programs, the accident in Colombia and other losses and writedowns.
Some 2,150 Transport Workers Union employees accepted an early retirement offer American made last year and 350 flight attendants accepted a separate early retirement offer (BI, Oct. 16, 1995).