American Airlines Group Inc reported a slightly better-than-expected quarterly profit, helped by lower fuel costs. Aircraft fuel costs and related taxes fell 12.6 percent to $1.39 billion during the third quarter.
The world’s largest airline’s net profit, however, halved as income tax provision jumped to $452 million in the quarter ended Sept. 30, from $16 million a year earlier, reports Reuters.
The company said on Thursday net income fell to $737 million, or $1.40 per share, from $1.69 billion, or $2.49 per share, a year earlier.
American Airlines aircraft are parked at Ronald Reagan Washington National Airport in Washington, U.S.
Excluding special items, the company’s profit was $1.76 per share, compared with the average analyst estimate of $1.69, according to Thomson Reuters I/B/E/S.
Passenger load factor, a measure of how full the planes are flying, fell to 83.3 percent from 85.6 percent. Revenue fell 1.1 percent to $10.59 billion.
American Airlines’ shares were up 1.6 percent in premarket trading on Thursday. Up to Wednesday’s close, American Airlines share had fallen 4 percent this year.
