Home Airline News: American Airlines reports strong third quarter earnings

News: American Airlines reports strong third quarter earnings

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American Airlines has reported third-quarter pre-tax income of $557 million.

Net income for the period at the carrier stood at $425 million.

Excluding net special items, both pre-tax income and net income rose more than 15 per cent year-over-year to $835 million and $630 million respectively.

Third-quarter earnings were $0.96 per diluted share.

Excluding net special items, earnings per share grew 20 per cent year-over-year to $1.42 per diluted share.

“We are pleased to report an earnings increase of 15 per cent and earnings per share growth of 20 per cent for the third quarter, excluding net special items,” said American Airlines chief executive, Doug Parker.

“However, we know that our results should have been better.

“Our third quarter was impacted by the continued grounding of the Boeing 737 Max and the operational challenges resulting from ongoing labour contract negotiations.

“These challenges affected our customers, our shareholders and our team members, who we thank for their hard work and perseverance.”

American reported a record third-quarter revenue of $11.9 billion.

The carrier also reported third-quarter total revenue per available seat mile of 15.71 cents, an increase of two per cent year-over-year.

“We are taking decisive action to correct this performance and are excited about our prospects for 2020 and beyond.

“As we look forward, we are committed to restoring operational excellence, growing efficiently and profitably, and generating significant free cash flow for our investors,” concluded Parker.

Shares in American rose four per cent following the release of the results, to stand at $29.4.