AA posts highest profit in company history
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American Airlines has recorded its highest quarterly profit in the company’s 80-year history.
For the second quarter of 2014, the Texas-based carrier recorded a net profit of US$1.5 billion – a record for any quarter, and a 114% improvement compared to the US$681 million registered in the same period last year.
Accounting for special charges incurred in the quarter, the net profit totalled US$864m, which marks a 293% increase compared to Q2 2013, when AA’s profits totalled US$220m.
“We are very pleased to report the highest quarterly profit in the history of American Airlines,” said AA’s chairman & CEO, Doug Parker. “Our merger [with US Airways] is off to a great start and our 100,000 team members are doing a wonderful job working together to take care of our customers.
“We have much hard work ahead, but we are extremely encouraged by the great work being done by our team members,” he added.
The airline’s second quarter revenues also hit a new record high, at US$11.4bn – 10.2% up year-on-year. This was driven by a 2.4% increase in passenger traffic, measured in revenue passenger miles, and a 6.5% rise in the airline’s passenger revenue per available seat mile.
Actual passenger numbers increased 2.5% to 37,910 in the quarter, while flight movements edged up 0.9% to 292,000.
For the first six months of the year, AA’s net profits (after special charges) totalled US$1.3bn, compared to a loss of US$122m in the same period last year. Six-month revenues jumped 70.2% to US$21.4bn.
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