American Airlines first-quarter profit better than forecast

American Airlines first-quarter profit better than forecast

On Friday, American Airlines Group Inc reported first-quarter profit, slightly higher than estimated by analysts. The airline also announced a $0.10 dividend thanks to cheap fuel that helped its bottom line. American is the world's largest passenger carrier.

Last quarter, the airline earned $932 million, approximately double its profit a year earlier. According to Thomson Reuters I/B/E/S, apart from special items, the airline earned $1.2 billion, or $1.73 per diluted share, compared to analysts' average forecast of $1.71 per diluted share.

After their experience in markets where travelers' spending power has been affected adversely by the strong US dollar or the plunging price of oil, its rivals Delta Air Lines Inc and United Continental Holdings Inc said that they will reduce their international service up to some extent outside the peak summer travel season.

Investors gave positive response regarding capacity cuts and are waiting to see whether American will be providing similar guidance during an investor call on Friday morning. According to American, competitive capacity growth, a strong US dollar and economic softness in Latin America led its revenue to drop 1.7% year-over-year to $9.8 billion. Passenger unit revenue dropped to 1.7%.

According to Cowen and Co analyst Helane Becker, they think that share repurchases are among the best ways for making use of the cash windfall from lower jet fuel. The airline also reported a pre-tax profit margin, apart from special items, of 12.7%, within the range of previous guidance.

Chief Executive Officer Doug Parker told employees in a letter, "All of this puts us on a great track to finish the heavy lift remaining in 2015, including the large task of combining our passenger service systems".

User login

You May Have Missed...

ISRO to launch 5 UK satellites
Tue, 07/07/2015 - 14:37

The Indian Space Research Organisation or ISRO has said that it is planning to launch 5 satellites for the UK for a profitable mission.


Nigeria Update

Fresh Polio Cases lead to WHO Travel Restrictions on Pakistan and Syria
Tue, 05/06/2014 - 00:45

World Health Organization has slapped international travel restrictions on Pakistan, Cameroon...

Economy Watch

US Import Prices decline in April
Thu, 05/14/2015 - 01:13

For a straight 10th month, US import prices declined in April. The decline could be due to the...

Health Tonight

NHS to conduct trails on 'artificial' blood
Thu, 06/25/2015 - 12:15

UK's health service, the NHS has said that it is planning to start conducting trials on using...

Science Tonight

Aliens could resemble humans, study
Sat, 07/04/2015 - 02:34

A new research study by University of Cambridge expert has said that aliens might actually exist...

UK News

UK Police warn against counterfeit cosmetics
Tue, 05/19/2015 - 01:58

The law enforcement authorities in the United Kingdom have said advised consumers to beware...


Astrazeneca’s Experimental Drug to Treat COPD Fails to Reduce Acute Exacerbation
Mon, 09/08/2014 - 13:17

On Monday, AstraZeneca PLC announced that Phase IIa study of benralizumab, an experimental drug...

US News

6 feet tall cow recognised as tallest cow by Guinness Records
Mon, 06/29/2015 - 10:40

The Guinness World Records has recognised a 6 feet tall cow as the tallest cow in the world. The...

Technology Tonight

Apple trying to ensure greater performance standards from its older devices
Sat, 05/23/2015 - 08:31

In what apparently is somewhat of a 'back to basics' move by US tech giant Apple, the company...