Friday, April 25, 2014

American Airlines reports 1st quarter results

American Airlines MD-82 (49256/1158) N244AA arrives at Long Beach Airport (LGB/KLGB) when the carrier still served the airport.
(Photo by Michael Carter) 

American Airlines Group, parent of merging carriers American Airlines and US Airways, reported net income of $480 million for the three months ended March 31—the first reporting period for the combined entity.

The net profit reverses a combined net loss of $297 million in the 2013 first quarter, comprising a $341 million net loss for standalone American and a $44 million net profit for standalone US Airways.

In its earnings report released Thursday, American revealed it received $381 million in cash for the sale of slots at Washington National (DCA) and New York LaGuardia (LGA) airports that were mandated by the US Department of Justice. It said it gained $137 million in net special credits “primarily” from the sale of the DCA slots “offset in part by integration and merger related expenses.”

The new American reported revenue of $10 billion for the three months ended March 31, up 5.6% over the combined revenue of American and US Airways in the 2013 March quarter. First-quarter expenses decreased 0.3% year-over-year on a similar basis to $9.27 billion, producing an operating profit of $730 million, a more than four times improvement over a combined operating profit of $173 million in the year-ago period.

American Airlines Group said the operations of American and US Airways have been joined at 58 airports, including American’s Miami hub and US Airways’ Phoenix hub.

Combined American/US Airways first-quarter mainline traffic rose 1.8% year-over-year to 45.83 billion RPMs on a 2.7% increase in capacity to 56.83 billion ASMs, producing a load factor of 80.6%, down 0.7 point. Yield improved 4.7% to 15.84 cents.

(Aaron Karp - ATWOnline News)

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