American Airlines Group Reports Highest Quarterly Profit In Company History

[700UW]

http://finance.yahoo.com/news/american-airlines-group-reports-highest-110000195.html
 
 

• Reported record quarterly net profit of $1.9 billion excluding net special charges, a 27 percent increase versus the second quarter 2014
• Reported record quarterly GAAP net profit of $1.7 billion, a 97 percent increase versus last year's second quarter
• Repurchased over $750 million of common stock and authorized an additional $2 billion share repurchase program
• Declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of August 10, 2015

American Airlines Group's second quarter 2015 net profit, excluding net special charges, was a record $1.9 billion, or $2.62 per diluted share versus a second quarter 2014 net profit excluding net special charges of $1.5 billion, or $1.98 per diluted share. The Company's second quarter 2015 pretax margin excluding net special charges was a record 17.2 percent, up 4.4 percentage points from the same period last year.
 

 

 

[bikeguy]

It would be a good time to get the M&R into negotiations.
I am sure it's not even on the Association's top 10 list....

 

[jimntx]

2Q15 Financial Recap
created by Thomas Bingham on Jul 23, 2015 3:45 PM, last modified by Thomas Bingham on Jul 24, 2015 6:05 AM

Today, American reported record second quarter 2015 net income of $1.9 billion, excluding net special charges*, or $2.62 per diluted share. This represents a 27 percent improvement versus the company’s second quarter 2014 net profit of $1.5 billion, excluding net special charges, or $1.98 per diluted share.

 

[WorldTraveler]

AA's profitability was driven by lower fuel costs. Period.

its revenue production was far below average for the industry.

Competition as I expected is full focused on AA's network and its RASM across its system showed it.

And not only is AA's size advantage as a result of the merger nearly gone but the difference in profitability is far lower and has likely come to an end now that fuel prices are virtually the same for all large carriers.

AA's operating margin was significantly below DL and WN but above UA.

 

[Kev3188]

^Haters gonna hate^

Congratulations to all AA employees! The turnaround has been amazing.

 

[WorldTraveler]

I hate nothing.

to use Doug Parker's own words, AA employees had nothing to do with the decision to hedge or not hedge. AA's profits are driven SOLELY by that decision.

AA employees in reality have little control over the revenue environment that AA competes in or how AA allocates its resources.

what AA employees do control is the operation they run and the quality of the service they provide but AA doesn't give them credit via profit sharing for that.

So, AA fans and others can get all excited by the profit and be offended if people call out the caveats of AA's financial performance but Doug Parker himself said that AA employees don't influence that profitability and don't get to share in it.

AA mgmt. made a great decision not to hedge and that decision has allowed AA to remain very profitable despite intense competition.

congrats to AA mgmt. for the decision they made and good luck as that fuel cost advantage ends and AA has to compete with other carriers who will be paying the same price for fuel but generating far higher revenues. Since AA employees don't influence either the fuel or revenue environment according to their CEO and won't share in the profits one way or the other, it isn't a discussion that non-mgmt. AA employees should worry about.

 

[MetalMover]

AA's profitability was driven by lower fuel costs. Period.

its revenue production was far below average for the industry.

Competition as I expected is full focused on AA's network and its RASM across its system showed it.

And not only is AA's size advantage as a result of the merger nearly gone but the difference in profitability is far lower and has likely come to an end now that fuel prices are virtually the same for all large carriers.

AA's operating margin was significantly below DL and WN but above UA.

This is why you are nothing more than a troll. You must have a compulsive disorder because you cannot leave DL out of just about any and every topic.
NO one cares about Delta on this board nor do we care about YOUR biased opinions.

 

[autofixer]

Nice profit!  
 
However; revenue missed by $30 Million but earnings beat by .02 per share after $750 Million stock buy back.  This is the S & P 500 CFO technique du jour to keep earnings in line with Wall Street expectations in a falling revenue environment.   

 

[1AA]

^Haters gonna hate^Congratulations to all AA employees! The turnaround has been amazing.

For who?

 

[FrugalFlyerv2.0]

And not only is AA's size advantage as a result of the merger nearly gone but the difference in profitability is far lower and has likely come to an end now that fuel prices are virtually the same for all large carriers.

 
You already posted this drivel on a previous thread this morning and were shown to be factually incorrect (that low fuel prices are coming to an end).  The mods erased those posts, but you being yourself, continue to write a thesis based on a false premise.
 
Re-Educate yourself here:
http://www.wsj.com/articles/oil-weak-after-overnight-losses-oversupply-weighs-1437617638
"Prices had settled below the key $50-a-barrel mark for the first time since early April on Wednesday, and they kept falling for most of Thursday. An unexpected increase in U.S. crude inventories, announced earlier this week, combined with high production already coming from the Organization of the Petroleum Exporting Countries, is raising concerns that the market is settling into a long period of oversupply."
“We expect the market to remain heavily oversupplied for the next year, keeping prices subdued,” said Thomas Pugh, commodities analyst at Capital Economics."
 
 

^Haters gonna hate^

 
100% accurate.

 

[WorldTraveler]

I have noted the facts about AA's profitability which are entirely driven by a $1.1 billion reduction in fuel costs with no hedge losses alongside the largest RASM decline of the big 4 carriers which has resulted in the industry leading size that AA got thru the merger now being almost eliminated and its operating margin trailing 2 of the big 4 carriers.

AA reported a very nice profit driven by fuel cost savings.


Those are facts. If you find that information biased and that of a troll, then I would suggest that you and others don't discuss business issues.

 

[FWAAA]

Too bad his stint on Moderator Preview has come to a premature end.

 

[WorldTraveler]

And I was hoping that you would add some financial insight to the discussion.

Throw us a bone and discuss the topic and find the insights we have missed, FWAAA.

 

[1AA]

Record profits, 1995 all over again. Now we have another shot at getting a contract without concessions. Problem is we not only have the twu to screw it up but the other loser union will take part in it as well. We as employees were always proud of the profits and advances of the company but lately it seems to make no difference to us what how much AA prospers. All that profit and our pensions are frozen. To add insult to injury not even a profit sharing check. We should all be proud of what? It's like we as employees are outsiders looking in. At the end of the day we do not even know who are employer is anymore.

 

[MetalMover]

Record profits, 1995 all over again. Now we have another shot at getting a contract without concessions. Problem is we not only have the twu to screw it up but the other loser union will take part in it as well. We as employees were always proud of the profits and advances of the company but lately it seems to make no difference to us what how much AA prospers. All that profit and our pensions are frozen. To add insult to injury not even a profit sharing check. We should all be proud of what? It's like we as employees are outsiders looking in. At the end of the day we do not even know who are employer is anymore.

Ah yes 1995...The beginning of the 6.5% over 6 year industry leading contract.