American Airlines failed to agree on cost-cutting measures with its flight attendants' union, setting the stage for a judge to rule on voiding the contract for the bankrupt carrier, Reuters reported on Saturday. The Fort Worth, Texas-based airline filed for chapter 11 protection in November, citing a need to cut labor costs, while its flight attendant and pilot unions have pushed for a merger with rival carrier US Airways Corp. to reduce expenses. Talks between American Airlines and the Association of Professional Flight Attendants ended without reaching a deal after two days of meetings, the union said on Friday. The pilots union will meet with the airline in another round of mediated sessions beginning today.
In related news, American Airlines' parent company lost $142 million in April as revenue failed to keep up with the cost of jet fuel, labor and other expenses, the Associated Press reported on Friday. AMR Corp.'s net loss was smaller in April than in other recent months, even though revenue fell 7 percent compared with March. Since filing for Chapter 11 protection in late November, AMR has posted a net loss of $2.7 billion including bankruptcy costs and a loss of $1.1 billion excluding those items. AMR said that in April it had $75 million in expenses for its bankruptcy reorganization, including $22 million in fees for lawyers and other professionals and $53 million to renegotiate and reject aircraft and facility leases. Without those reorganization costs, AMR would have lost $67 million on revenue of $2.04 billion.
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