By Christina Mlynski
Airfare increases, low fuel costs and rising consumerbrinterest in travel all put AmericanbrAirlines at the head of the pack in fourth quarter earnings, beating expertbrprofit predictions.
The world's largestbrairline — thanks to its officialbrmerger with US Airways in December — posted a combined net profit of $1.9brbillion for the full year, a $1.5 billion improvement from last year, according to its earnings report.
“The early returns on our merger are very positive," saysbrDoug Parker, CEO of American Airlines Group Inc. "Our teams are workingbrwell together and our customers are already beginning to see the benefits ofbrour combined network.”
The $1.9 billion combines American Airlines separatebrearnings for the year, not just since the merger. Consequently, the companybrearned $407 million, excluding items in 2012.
During the fourth quarter, combined revenue was $40.4brbillion, up 4.7% from the previous year.
American Airlines also reported a combined bet profit ofbr$436 million on a non-GAAP basis, which is up $478 million from last year whenbrthe company posted a $42 million non-GAAP net loss.
However, not all was good news for the airline company.
On a GAAP basis, American Airlines posted a $2 billion netbrloss for the fourth quarter, including $2.4 billion in net special charges duebrto American's bankruptcy reorganization and the US Airways merger.
Furthermore, net loss for the full year was $1.8 billion,brincluding $3.1 billion in net special charges.
We have much work ahead, but believe we are on ourbrway to restoring American as the greatest airline in the world,” Parker states.br“These financial results are evidence of the strong foundation we have in placebrand we anticipate improving upon these results as we further integrate ourbroperations in 2014."