Friday, May 22nd20.8°C
26329

Flush with more revenue, American Airlines posts profit, declares first dividend since 1980

FORT WORTH, Texas - Profit and revenue are up at American Airlines, and the company will share some of the gains with shareholders.

American Airlines Group Inc. said Thursday that it earned a record $864 million in the second quarter, up from the $507 million that American and US Airways earned separately a year ago, before their merger.

Excluding special charges, the company said it earned a record $1.46 billion, or $1.98 per share. Analysts surveyed by FactSet expected $1.95 per share.

Revenue rose 10.2 per cent on a combined basis as passengers paid 6.5 per cent more per mile for their tickets.

American said that it will pay a dividend for the first time since 1980, buy back up to $1 billion in shares, and spend $2.8 billion to pay off debt and aircraft leases.

CEO Doug Parker said the ability to make those expenditures while buying new planes and combining American and US Airways showed that the merger was a success.

Several big mergers in the past decade have reduced competition and helped the surviving airlines control the number of flights and keep fares up.

American's yield, or the amount that passengers pay per mile in fares, rose 6.5 per cent over the same quarter last year. Domestic fares rose more quickly than those on international routes, where competitors have been adding flights.

On costs, American's fuel spending rose nearly 3 per cent and labour costs increased 10 per cent.

The shares rose 4 cents to $43.37 in morning trading. They began the day up 72 per cent in 2014.

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15199.54-4.07
S&P CDNX701.57+1.06
DJIA18269.08-16.66
Nasdaq5099.37+8.58
S&P 5002130.59-0.23
CDN Dollar0.8121-0.0073
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.00+3.40
Natural Gas2.899-0.050

 
Okanagan Companies
Pacific Safety0.14+0.00
Knighthawk0.010.00
QHR Technologies Inc1.46+0.01
Cantex0.03-0.01
Anavex Life Sciences0.39+0.02
Metalex Ventures0.09+0.01
Russel Metals25.68-0.14
Copper Mountain Mining1.38-0.03
Colorado Resources0.10-0.00
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



26416

FEATURED Property
2300315Salmon Arm
3 bedrooms 2 baths
$359,000
more details
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



26418

26363


Member of BC Press Council


24843