FORT WORTH – American Airlines Group Inc. (AAL) on Thursday reported third-quarter profit of $737 million.
“These outstanding results are due to the efforts of our more than 100,000 team members, who are working tirelessly to improve our operations, product, and customer experience,” said Doug Parker, Chairman and CEO.
Total revenue in the third quarter was $10.6 billion, a decrease of 1.1 percent (versus the third quarter 2015) due to competitive capacity growth, continued macroeconomic softness outside of the United States, and foreign currency weakness.
Total operating expenses in the third quarter were up 5.2 percent, due primarily to an increase in salaries and benefits expense, which includes the impact of the Company’s recent labor agreements and profit sharing program.
As part of the Company’s ongoing fleet renewal program, the Company invested $1.0 billion in new aircraft during the third quarter, including 12 new mainline aircraft and 9 new regional aircraft, while removing 49 aircraft from the fleet. With an average mainline aircraft age of 10 years, the Company operates the youngest fleet of the four largest U.S. carriers.
The results surpassed Wall Street expectations. American Airlines shares have dropped 4 per cent since the beginning of the year. The stock has dropped nearly 9 per cent in the last 12 months.
Other Notable Accomplishments in Q3 Include:
– Integrated all of 15,000 American Airlines pilots and its mainline fleet into a single scheduling system
– New uniforms for 80,000 flight crew members, mechanics, and employees at airports, clubs and lounges
– Took delivery of the Company’s first Boeing 787-9 aircraft, the first of four 787-9s expected to be delivered this year
– Offered Premium Economy seating, a new class of service on international flights with more legroom and wider seats
– Launched new nonstop service between Los Angeles International Airport and Hong Kong on Sept. 7
– Expanded complimentary in-flight entertainment offerings to include premium movies, TV shows, music and games
– Began the Company’s first-ever regularly scheduled flights to Cuba on Sept. 7 with nonstop service from Miami to Cienfuegos and Holguin. Havana service begins in November
– Reopened the Company’s London Heathrow Arrivals Lounge following a multi-million dollar refurbishment that now features 29 shower rooms