This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

American Airlines Eyes First Profit-Sharing in 13 Years

DALLAS ( TheStreet) -- American Airlines (AAMRQ) still wants a merger with US Airways (LCC), but the carrier is doing fine on its own -- to the point that it foresees its first profit-sharing distribution in 13 years.

American said Thursday that the third quarter was the most profitable quarter in its history, producing a net profit of $530 million, excluding one-time reorganization costs related to its ongoing bankruptcy. Revenue rose 6.2% to $6.8 billion, the highest quarterly revenue in American's history. Including items, the net profit was $289 million, compared with a loss of $238 million in the same period a year earlier.

"Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways," said CEO Tom Horton, in a prepared statement.

Horton said American has set aside $59 million this quarter "in expectation of making our first profit-sharing payout since 2001 to our people who have done so much to put American back on top." So far, American has accrued $65 million for profit sharing this year.

During the quarter, consolidated passenger revenue per available seat mile rose 3.4% to an all-time record of 13.79 cents per available seat mile. Mainline PRASM rose 4%. On the cost side, excluding fuel and special items, cost per available seat mile declined by 5.4%. American's pretax margin, excluding reorganization and special items, was 7.8%.

During the quarter, American took delivery of 19 new Airbus and Boeing aircraft. On Wednesday, it announced plans for new service from Dallas-Fort Worth, its largest hub, to Hong Kong and Shanghai.

In its earnings release on Thursday, the company said: "American and US Airways Group are vigorously defending the lawsuit filed by the Department of Justice seeking to enjoin their planned merger, and continue to move forward with developing a merger integration plan."

-- 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

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $132.63 -0.02%
FB $81.36 -0.67%
GOOG $555.04 -0.06%
TSLA $234.16 1.10%

Markets

DOW 18,093.89 +55.92 0.31%
S&P 500 2,112.28 +3.36 0.16%
NASDAQ 5,062.91 +2.6640 0.05%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs