American Airlines Posts Profit of $1.7 Billion on Fuel Costs
The results compared to the airline’s profits of $942 million during the same quarter one year ago equal to $1.28 a diluted share.
Not taking into account special charges, the $1.9 billion in its earnings represented the biggest quarterly profit in the history of the airline.
This announcement came one week after the airline combined its system of reservations with the former airline US Airways, after the merger was approved back in December of 2013.
This switch occurred without disruptions to customer service or operations said the company on Friday.
American Airlines Group shares were up 3.8% in premarket trading on Friday.
The latest financial results were based upon a drop in the revenues combined with a drop that was larger in overall expenses.
Total revenue during the quarter reached $10.7 billion, which represented a drop of 3.9% compared to the same period one year ago. However, the total expenses for operations were $8.7 billion, which was a decrease of more than 11.9% in comparison to the same time one year ago.
Fuel costs fell 44% compared to the same time one year ago to almost $1.6 billion for the period. Special charges during the three-month period were $165 million. Those charges included expenses related to the merger of $198 million and the dissolving of a joint venture of $38 million with Texas Aero Engine.
The charges however, were offset by a credit of $66 million for the proceeds of a separate settlement.
American returned more than $1.63 billion back to shareholders via a stock buyback of $1.56 billion and a dividend of $67 million.
The board of directors approved a buyback of $2 billion before the end of 2016 and 10 cents a share dividend will be paid on November 19.