403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
American Airlines Q3 profit soars on cheaper jet fuel
(MENAFN- Arab News) FORT WORTH Texas: A big merger and cheaper jet fuel are doing wonders for American Airlines.
The world's biggest airline reported that its net income jumped 80 percent in the third quarter to $1.69 billion despite lower revenue.
Earnings got a big lift as fuel costs plunged 43 percent a savings of $1.46 billion.
American also announced a new $2 billion share-buyback program.
On top of that the company said it has seen no problems since combining the reservations systems of American and US Airways last weekend. That technology crossover tripped up United Airlines after its merger with Continental.
With the results American joined Delta United and Southwest in reporting higher profits in the latest quarter as lower fuel prices trumped flat or falling revenue.
American's shares rose $1.81 or 3.9 percent to $47.80 in premarket trading about an hour before Friday's opening bell. They ended Thursday down 14 percent so far this year.
American Airlines Group Inc. said that excluding special items related to its merger and other things such as technology help adjusted profit was $1.9 billion the highest in any quarter in American's history. At $2.77 per share the results matched the expectation of 15 analysts surveyed by FactSet and beat the $2.72 per share forecast of nine analysts surveyed by Zacks Investment Research.
Revenue however fell 4 percent on evidence of lower average airfares. The $10.71 billion total was slightly less than the FactSet and Zacks forecasts of $10.72 billion.
American doesn't disclose average fares but yield or the amount that passengers pay for each mile they fly fell 9.2 percent.
Airlines have taken advantage of cheaper fuel to increase flights this year but they have had to cut prices to fill more seats.
American announced a $2 billion addition to its program of buying back its own stock over the next 15 months a move that usually pleases shareholders by making existing shares more valuable. That raises the amount authorized this year for buybacks to $6 billion.
The company also declared a quarterly dividend of 10 cents per share.
The world's biggest airline reported that its net income jumped 80 percent in the third quarter to $1.69 billion despite lower revenue.
Earnings got a big lift as fuel costs plunged 43 percent a savings of $1.46 billion.
American also announced a new $2 billion share-buyback program.
On top of that the company said it has seen no problems since combining the reservations systems of American and US Airways last weekend. That technology crossover tripped up United Airlines after its merger with Continental.
With the results American joined Delta United and Southwest in reporting higher profits in the latest quarter as lower fuel prices trumped flat or falling revenue.
American's shares rose $1.81 or 3.9 percent to $47.80 in premarket trading about an hour before Friday's opening bell. They ended Thursday down 14 percent so far this year.
American Airlines Group Inc. said that excluding special items related to its merger and other things such as technology help adjusted profit was $1.9 billion the highest in any quarter in American's history. At $2.77 per share the results matched the expectation of 15 analysts surveyed by FactSet and beat the $2.72 per share forecast of nine analysts surveyed by Zacks Investment Research.
Revenue however fell 4 percent on evidence of lower average airfares. The $10.71 billion total was slightly less than the FactSet and Zacks forecasts of $10.72 billion.
American doesn't disclose average fares but yield or the amount that passengers pay for each mile they fly fell 9.2 percent.
Airlines have taken advantage of cheaper fuel to increase flights this year but they have had to cut prices to fill more seats.
American announced a $2 billion addition to its program of buying back its own stock over the next 15 months a move that usually pleases shareholders by making existing shares more valuable. That raises the amount authorized this year for buybacks to $6 billion.
The company also declared a quarterly dividend of 10 cents per share.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment