American Airlines, Despite 737 Max Grounding and Labor Woes, Posts $1.2 Billion in Pre-Tax Earnings

By Paul Riegler on 25 July 2019
  • Share

DSC_0629American Airlines announced results for second quarter of 2019 on Thursday.

The world’s largest carrier posted slightly higher than expected second-quarter earnings but said that the ongoing grounding of Boeing’s 737 Max will affect annual earnings by ca. $400 million.

Revenue for the second quarter was $11.96 billion, a year over year increase of 2.7% from $11.64 billion in 2018.

“Our team members did a tremendous job to deliver solid results despite a challenging start to our summer,” said the airline’s CEO, Doug Parker. “Their extraordinary efforts led to an increase in earnings and record revenue performance, and we thank our team for their expertise and care for our customers.”

Pre-tax income in Q2 2019 was $882 million, and net income was $662 million. Excluding net special items, pre-tax income and net income were up 5% year over year to $1.1 billion and $810 million, respectively.

Revenue per available seat mile, or PRASM, was up 4% to 15.22 cents, a record for any quarter, the airline said.

(Photo: Accura Media Group)

Accura News

Read previous post:
Southwest to Pull Out of Newark, Consolidate at LaGuardia, Citing 737 Max Grounding

Southwest Airlines said Thursday that it plans to discontinue operations at Newark Liberty International Airport and consolidate its presence in...