American Airlines Closes It Out With a Second-Quarter Profit
The carrier, which expects to complete a merger with US Airways (LCC) in the current quarter, said its net profit, excluding items, in the second quarter was $357 million, representing a $262 million improvement over the same period a year earlier. Consolidated revenue was flat at $6.5 billion.
Including items, the profit was $220 million, compared with a loss of $241 million in the same period a year earlier.
American, which has been operating under bankruptcy court protection since November 2011, became the first airline to report second-quarter earnings. Most carriers will report next week.During the quarter, consolidated and mainline capacity rose approximately 1.1%, compared with the same period a year earlier, while passenger revenue per available seat mile declined by 0.9%. The carrier said close-in demand began to decline in March, but PRASM subsequently increased during the quarter. On the cost side, cost per available seat mile excluding fuel and special items decreased by 5.8%, driven by restructuring efforts. The company ended the quarter with $7.1 billion in cash and short-term investments. Looking ahead, American estimates consolidated capacity will gain 2.7% in the current quarter, driven by longer stage length and by new international capacity. Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts