American Airlines’ quarter income soared among lower fuel prices and a busy summer season.
American Airlines’ quarter income soared, giving the the world’s largest passenger airline by 87%. The results of AA’s quarter profits were announced Thursday morning and sent stocks increasing by 1.4%, up to $37.46.
Revenue for the quarter was $11.1 billion, of which AA profited $1.08 billion. The estimates were slightly less than Wall Street estimates of $11.5 billion.
Analysts say that this can be attributed to the decrease in fuel prices, which went down 1.3% over the quarter. This fact, coupled with a busy summer season, contributed to a good deal of business for the airline.
American Airlines did not give an estimate of what they expect in for the 4th and final quarter of 2014, but Chief Executive Officer Doug Parker did say that they were expecting to beat records in the 4th quarter and finish the year with record income.
American Airlines had $281 million in net special charges, which was mostly attributed to costs associated with their merger with US Airways.
Southwest, United, Alaska, and Jet Blue all also saw increases over where they stood with net income at this time last year, with Southwest also breaking records.
Interestingly, it appears that the Ebola has not had an impact on airline bookings, even though stocks previously saw a downward trend as developments of the disease spread, particularly after companies were reported as having flown passengers that later developed the disease. American Airlines specifically said in its presentation that the news of Ebola has not had an impact on their bookings.