American Airlines reports strong profits for second quarter
American Airlines has reported a second quarter 2019 pre-tax profit of $882 million and net profit of $662 million.
Excluding net special items, pre-tax profit and net profit rose more than five per cent to $1.1 billion and $810 million, respectively.
Second quarter earnings were $1.49 per diluted share.
Excluding net special items, earnings per share grew ten per cent year-over-year to $1.82 per diluted share.
“Our team members did a tremendous job to deliver solid results despite a challenging start to our summer,” said chief executive, Doug Parker.
“Their extraordinary efforts led to an increase in earnings and record revenue performance, and we thank our team for their expertise and care for our customers.”
American reported a record second quarter revenue of $12 billion.
“These strong results in the face of near-term adversity, coupled with our ongoing initiatives, give us great confidence in the future of American Airlines,” added Parker.
Excluding fuel and special items, second quarter CASM was 11.34 cents, up 4.8 per cent year-over-year, driven primarily by lower than planned capacity due to the Boeing 737 Max grounding and operational disruptions related to what American called an “illegal work slowdown” by the mechanics’ union in an effort to influence contract talks.
Also today, American revealed it would be discontinuing flights between Miami and Santa Cruz de la Sierra, Bolivia, as of November 28th.
Currently the carrier operates three weekly flights in the market using a Boeing 757-200.
This means the only airline flying non-stop between the United States and Bolivia will be Boliviana de Aviacion, which also flies to Miami using a mix of Boeing 737 and Boeing 767 planes.