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American Airlines reports record quarterly profit

Image via Chris Parypa Photography / Shutterstock.com

American Airlines Group achieved a record net profit of $1.9 billion in the second quarter of the year.


This came despite a 4.6% decline in total revenue to $10.8 billion as capacity increased by 1.9% at the combined American Airlines and US Airways carrier.


Total operating expenses in the second quarter were $8.9 billion, down by 10.5% over the same period in 2014, mainly due to a 36.9% drop in fuel costs.


Chairman and chief executive, Doug Parker, said: “Reporting the highest quarterly profit in our history is another indication that our team is on the path to restoring American as the greatest airline in the world.


“These results are especially remarkable considering the significant and successful work underway to integrate two airlines.


“The more than 100,000 dedicated team members of American Airlines are doing a phenomenal job and we are grateful for their commitment to our customers.”


As part of an extensive fleet renewal plan that has made American’s fleet the youngest of any U.S. network airline, The carrier expects to spend $5.4 billion on new aircraft this year.


It took delivery of 24 new mainline aircraft and nine regional aircraft and retired 34 older mainline and eight older regional aircraft during the quarter.


American is also investing $2 billion to further enhance its service, including improvements to aircraft interiors, international Wi-Fi connectivity and upgrades to Admirals Club lounges.

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