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AA Posts Record Q3 Profits, Year-Over-Year Drop in Revenue

American posts record third-quarter profit, but reports a year-over-year decrease in revenue.

American Airlines Group Inc. reported 2015 third-quarter results last week, posting a record profit that nearly doubled year-over-year — thanks in large part to lower fuel costs.

The company reported record third-quarter net earnings, excluding special charges, of $1.9 billion, or $2.77 per diluted share, up 58.3 percent from 2014’s third-quarter net profit, excluding net special charges, of $1.2 billion, or $1.66 per diluted share.

Without special charges, American earned a GAAP net profit of $1.7 billion, or $2.49 per diluted share, up 80 percent from the year-ago period.

Third-quarter revenue came in at $10.7 billion, down 3.9 percent from $11.1 billion in 2014’s third quarter on a 2.9 percent increase in total available seat miles (ASMs).

According to Yahoo! Finance, analysts expected the airline to report third-quarter earnings per share of $2.72 on revenue of $10.7 billion.

The airline said consolidated passenger revenue per ASM (PRASM) was 13.16 cents, down 6.8 percent versus the third quarter 2014. Consolidated passenger yield fell to 15.37 cents, down 9.2 percent year-over-year.

For American’s fourth quarter, analysts expect the company to earn $1.84 per share on revenue of $9.7 billion. For full-year fiscal 2015, analysts expect American to report revenue of $41.1 billion.

[Photo: American Airlines]


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