NEW YORK (TheStreet) -- Shares of American Airlines Group(AAL) - Get Report are slipping in Friday trading after the airline reported mixed quarterly results. American reported adjusted earnings of $2.62 per diluted share, a 32% year-over-year increase, beating analysts' estimates by $0.02, according to Thomson Reuters. Revenue, however, fell by 4.7% to $10.8 billion, narrowly missing expectations.
The company said its revenue was negatively impacted by its cargo operations, which fell 12.3%, and its mainline passenger business, where passenger revenue per seat-mile fell 6.9% from a year ago. Cost per available seat mile fell 12.8%.
President Scott Kirby said on a conference call that passenger unit revenue will likely keep falling in the near term as capacity exceeds demand in some areas, the strong U.S. dollar weighs on overseas travelers' spending power, and some national economies remain weak.
Chairman and CEO Doug Parker said in a statement, "Reporting the highest quarterly profit in our history is another indication that our team is on the path to restoring American as the greatest airline in the world. These results are especially remarkable considering the significant and successful work underway to integrate two airlines. The more than 100,000 dedicated team members of American Airlines are doing a phenomenal job and we are grateful for their commitment to our customers."
American and US Airways are now regulated by the Federal Aviation Administration as a single airline, and will begin operating as one airline for customers when its unified reservation system launches on Oct. 17. American said it repurchased $753 million of common stock in the second quarter and authorized an additional $2 billion share repurchase program, which will be completed by the end of April 2016.