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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Airlines Has Record Profit in First Full Quarter After Merger

FORT WORTH, Texas (TheStreet) -- American (AAL) reported record first-quarter net income on Thursday that beat Wall Street estimates. It was the airline's first full quarter following a merger with US Airways.

American followed Delta (DAL) in reporting record results in the first quarter, once a period when airlines were expected to lose money due to generally low winter travel.

Excluding items, American reported net profit of $402 million, or 54 cents a share. Analysts surveyed by Thomson Reuters had estimated 48 cents. Revenue rose 5.6% to $10 billion, in line with estimates.

"For the first quarter, I'm pleased to report a record first quarter net profit of $402 million excluding net special credits," said CEO Doug Parker, in a message to employees. "In the entire history of American Airlines, we have never earned $400 million in the first three months of a year, but in the first three months since the merger, we did."

In the same period a year earlier, excluding items, the carrier reported a combined net profit of $62 million for American Airlines and US Airways.

Including items, net profit in the first quarter of 2014 was a record $480 million, compared with a net loss of $297 million in the first quarter of 2013, when AMR Corp. was operating under bankruptcy court protection.

During the quarter, capacity increased 2%. Combined consolidated passenger revenue per available seat mile rose 2.9% to a record 13.67 cents. On the cost side, mainline cost per available seat mile excluding fuel and special charges rose 4% to 8.96 cents. Including fuel and special items, Mainline CASM fell 2.7% including fuel and items.

As of March 31, American had approximately $10.6 billion in total cash and short-term investments, of which $947 million was restricted.

Written by Ted Reed in Charlotte, N.C.

To contact this writer,
click here.

Follow @tedreednc

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,101.59 -5.11 -0.03%
S&P 500 1,998.74 -1.28 -0.06%
NASDAQ 4,569.3210 -1.3160 -0.03%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs