American profits soar in 2013

American Airlines recorded profits of almost US$2 billion in 2013, as it emerged strongly from bankruptcy protection.

The carrier filed for Chapter 11 reorganisation in 2011 following three consecutive annual losses. But it surged back last year, posting a 12-month net profit of US$1.9bn, to build on the US$407 million profit it generated in 2012.

The company’s operating revenues climbed 7.6% year-on-year in 2013, to US$26.74bn. And importantly, American’s yields increased 2.3%, while revenue per available seat mile climbed 2.5%.

American also completed its merger with US Airways last year, and is now working to integrate the two carriers under the revamped American brand. And the combined company’s CEO, Doug Parker, said the merger would lead to further opportunities for growth in the future.

“The early returns on our merger are very positive,” said Parker. “Our teams are working well together and our customers are already beginning to see the benefits of our combined network. We have much work ahead, but believe we are on our way to restoring American as the greatest airline in the world. These financial results are evidence of the strong foundation we have in place and we anticipate improving upon these results as we further integrate our operations in 2014.”

American carried 108.74m passengers last year – just 1% more than 2012. Combined with US Airways however, this total rises to more than 193m passengers, which would make the merged company the biggest airline in the world, in terms of passenger traffic.

The full-year profit for American Airlines continues the upward trend for US carriers in 2013. United recently reported a net profit of US$1.1bn, while Delta generated US$2.7bn last year.

The airline ended 2013 with 902 aircraft. But again, combined with US Airways this will rise to more than 1,500 aircraft, giving it the world’s biggest commercial fleet.