American Airlines Beats 4Q Expectations Post-Merger
Jan 29, 2014 10:36AM
● By Anonymous
By Christina Mlynski
Airfare increases, low fuel costs and rising consumer interest in travel all put American Airlines at the head of the pack in fourth quarter earnings, beating expert profit predictions.
The world’s largest airline — thanks to its official merger with US Airways in December — posted a combined net profit of $1.9 billion 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," says Doug Parker, CEO of American Airlines Group Inc. "Our teams are working well together and our customers are already beginning to see the benefits of our combined network.”
The $1.9 billion combines American Airlines separate earnings for the year, not just since the merger. Consequently, the company earned $407 million, excluding items in 2012.
During the fourth quarter, combined revenue was $40.4 billion, up 4.7% from the previous year.
American Airlines also reported a combined bet profit of $436 million on a non-GAAP basis, which is up $478 million from last year when the 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 net loss for the fourth quarter, including $2.4 billion in net special charges due to American’s bankruptcy reorganization and the US Airways merger.
Furthermore, net loss for the full year was $1.8 billion, including $3.1 billion in net special charges.We have much work ahead, but believe we are on our way to restoring American as the greatest airline in the world,” Parker states. “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."