American Airlines Post a Profit in the Fourth Quarter
Though the American Airlines reported profit for the fourth-quarter but the carrier failed to impress the investors as the unit revenues of the carrier dropped.
On Tuesday the shares of American fell about five percent during the morning trading hours before gaining slightly.
The carrier said that its unit revenues, which is a major gauge that measures the financial performance of the airline dropped one percent for the fourth quarter. The reason is partially a result of the competition which the carrier has to face from its rivals which also includes the Southwest Airlines.
For the fourth quarter, the carrier based in Fort Worth reported a profit of $597 million. It is a turnaround from the last year's loss of $2 billion as it came out from bankruptcy. American Airlines said that the revenues increased by 2.1 percent at $10.2 billion in the fourth quarter when though the airline has slightly less number of passengers in the last quarter.
Doug Parker, the chief executive of American Airlines said on Tuesday , "This is the best year in the long, proud history of American Airlines and the best year by a long shot, more than double the prior record, and we're extremely pleased to be reporting results like this just one year into our merger."
The American Airlines and US Airways sealed their merger in Dec. 2013.
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