American Airlines Q1 2016 results announced

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By admin April 25, 2016 19:49

American Airlines Q1 2016 results announced

American Airlines first quarter 2016 results show a 4% fall in revenue to $9.4bn, which was negatively impacted by competitive capacity growth, continued macroeconomic softness in Latin America, and foreign currency weakness, the airline said.
Consolidated passenger revenue per ASM (PRASM) was 12.43 cents, down 7.5% versus the first quarter 2015. Consolidated passenger yield was 15.62 cents, down 7.1 percent year-over-year.

American Airlines Group’s first quarter 2016 pre-tax margin excluding special items was 12.9%, however, a record for the company’s first quarter.

Net profit excluding special items was $765 million, or $1.25 per diluted share. This compares to a net profit excluding special items for the 2015 first quarter of $1.2 billion, or $1.73 per diluted share. The 2016 first quarter net profit excluding special items included a provision for income taxes of $456 million, of which $453 million was non-cash.

On a GAAP (Generally Accepted Accounting Principles) basis, the company reported a net profit of $700 million, or $1.14 per diluted share. This compares to a GAAP net profit of $932 million in the first quarter 2015, or $1.30 per diluted share. The first quarter net profit included a provision for income taxes of $417 million, of which $414 million was non-cash.

“We are pleased to report a first quarter pre-tax profit of $1.2 billion, excluding special items, and a 15 percent improvement in adjusted earnings per share,” said Doug Parker, American Airlines Chairman and CEO. “These results include a $73 million accrual related to the system-wide profit sharing plan we announced earlier this quarter. The people of American are doing an outstanding job of taking care of our customers and are the key to our future success.”

Total operating expenses in the first quarter were $8.1 billion, a decrease of 5.9% compared to the first quarter 2015 due primarily to a 32.7 percent decrease in consolidated fuel expense. First quarter mainline cost per available seat mile (CASM) was 11.58 cents, down 9.5% on a 3.1 percent increase in mainline ASMs versus the first quarter 2015. Excluding special items and fuel, mainline CASM was 9.62 cents, up 1.4% compared to the first quarter 2015. Regional CASM excluding net special items and fuel was 16.11 cents, down 2.2% on an 8.1% increase in regional ASMs versus the first quarter 2015. The first quarter expenses include a $73 million accrual related to the company’s recently announced profit sharing program.

As of March 31, 2016, American had approximately $9.4 billion in total available liquidity, consisting of unrestricted cash and investments of $6.9 billion and $2.4 billion in undrawn revolver capacity. The airline also had a restricted cash position of $691 million.

American Airlines invested $1.3 billion in new aircraft during the first quarter, including 15 new mainline and 13 new regional aircraft, while retiring 22 aircraft.

American Airlines Group stock traded down 4.5% after the release of its first quarter fiscal year 2016 earnings release. The slump was evident even when the company reported a beat on its earnings per share estimates, and reported revenue in line with the estimates. The fall was due to decline in revenue and net income during the quarter, as industry analysts expected the airline to report improved results.

admin
By admin April 25, 2016 19:49