Created: 07/24/2014 11:21 AM WNYT.com
FORT WORTH, Texas (AP) — Profit and revenue are up at American Airlines, and the company will share some of the gains with shareholders.
American Airlines Group Inc. said Thursday that it earned a record $864 million in the second quarter, up from the $507 million that American and US Airways earned separately a year ago, before their merger.
Excluding special charges, the company said it earned a record $1.46 billion, or $1.98 per share. Analysts surveyed by FactSet expected $1.95 per share.
Revenue rose 10.2 percent on a combined basis as passengers paid 6.5 percent more per mile for their tickets.
American said that it will pay a dividend for the first time since 1980, buy back up to $1 billion in shares, and spend $2.8 billion to pay off debt and aircraft leases.
CEO Doug Parker said the ability to make those expenditures while buying new planes and combining American and US Airways showed that the merger was a success.
Several big mergers in the past decade have reduced competition and helped the surviving airlines control the number of flights and keep fares up.
American's yield, or the amount that passengers pay per mile in fares, rose 6.5 percent over the same quarter last year. Domestic fares rose more quickly than those on international routes, where competitors have been adding flights.
On costs, American's fuel spending rose nearly 3 percent and labor costs increased 10 percent.
The shares rose 4 cents to $43.37 in morning trading. They began the day up 72 percent in 2014.
(Copyright 2014 by The Associated Press. All Rights Reserved.)