American Airlines reports $1.1 billion Earnings in Fourth Quarter
On Tuesday, American Airlines announced that the aviation major earned $1.1 billion in the fourth quarter and $4.2 billion for all of 2014. The profits excluded special charges and items. American Airlines earned $597 million for the fourth quarter and $2.9 billion for the year. These numbers represent the best fourth quarter and full year in the history of American Airlines.
The company also reported the biggest profit that surpassed No. 2 Delta Air Lines by $1.35 billion.
Doug Parker, American chairman and chief executive said, "This is the best year in the long, proud history of American Airlines, the best year by a long shot. We are extremely pleased to be reporting results like this just one year into our merger".
After Tuesday's report, the analysts estimated that the American Airlines Group could post net income of $7.3 billion in 2015.
American Airlines said it expects to pay $1.73 to $1.78 a gallon for fuel this quarter, compared with $3.06 a year earlier. It doesn't use contracts to protect against price swings in jet kerosene.
American will save more than $5 billion on its 2015 fuel bill compared with 2014. According to Parker, American Airlines has no intention of boosting its capacity right now because of lower fuel prices.
The best year for American Airlines was 1998 when the company earned $1.31 billion before merging with US Airways on December 9, 2013. The best fourth quarter came in 1996 when it earned $284 million.
Parker, President Scott Kirby and chief financial officer Derek Kerr suggested that the record year was a combination of good events, including falling fuel costs, strong demand from travelers and the synergies from putting two airlines together.
Betting big on cruisers, the luxury motorcycle...Read More
Uber Technologies reported lower loss by nearly 9...Read More
The Samsung Galaxy Note 8 is facing an increasingly...Read More
Luxury carmaker BMW’s next-generation M5 car will...Read More
Board members of the bankrupt Energy Future...Read More
During the past few years, Tesla was slammed by a...Read More