At 11:30am today, April 23, 2014 American Airlines Group (NASDAQ: AAL) announced its 2014 First Quarter Financial Results from Dallas-Fort Worth, Texas with record quarter profits.
Net profit was $480 million, or 65 cents a diluted share, for the first quarter. That compares with a loss of $297 million in the year-earlier period for the combined AMR Corp and US Airways Group, which were allowed to merge together in late 2013.
Excluding items that included a gain tied to the sale of takeoff and landing rights at Reagan National Airport (DCA) in Washington, D.C., which American was required to sell by U.S. regulators, net profit for the combined company was $402 million, or 54 cents a share. That compared with $62 million in the first quarter of last year that American Airlines and US Airways earned together.
American acknowledged that severe winter weather caused a lot of trouble this year for the airline and the industry alike.
- First quarter 2014 net profit was $480 million, or 65 cents a diluted share, for the first quarter. That compares with a loss of $297 million in the year-earlier period for the combined AMR Corp and US Airways Group, which came together in a merger in late 2013.
- Excluding net special credits, the company reported a record first quarter net profit of $402 million. This represents a $340 million year-over-year improvement versus the company’s combined net profit of $62 million excluding net special charges in the first quarter 2013.
- First quarter 2014 pretax margin excluding net special credits was 4.1 percent, a 3.6 point year-over-year improvement.
- The company ended the quarter with $10.6 billion in total cash and short-term investments. Since the close of the merger, the company has used more than $542 million of cash to reduce its diluted shares outstanding by approximately 20 million.
- In the first quarter, the company recognized a combined total of $78 million in net special credits, including:
- $137 million in net special credits consisting primarily of the gain on the sale of slots at Reagan National Airport offset in part by integration and merger-related expenses
- $47 million in non-operating special charges due primarily to non-cash interest accretion on bankruptcy settlement obligations
- $8 million in non-cash deferred income tax provision related to certain indefinite-lived intangible assets
- $4 million in regional non-operating charges
Community Relations Developments:
- Raised and contributed $750,000 to the Cystic Fibrosis Foundation through the company’s 29th Annual Celebrity Ski event in Vail, Colo.
- Completed 230 employee volunteer events and distributed more than $500,000 in grants in the communities American serves
- Raised more than $55,000 in employee contributions for the American Airlines and American Eagle Family Fund and the US Airways Education Foundation through the online auction of a trip to Toulouse, France, to take delivery of a new Airbus A330 aircraft
- Provided travel to 42 children and their families for critical surgeries through the company’s Kids in Need program. Nearly 18 million frequent flyers donated more than 48 million miles to the program, which supports the mission of 40 children’s organizations and makes travel possible for children in need.
- Transported and worked with more than 60 assistance dogs in partnership with Assistance Dogs International (ADI) through employees who volunteer with the company’s Puppies in Flight program
Other Integration Related Developments:
- Distributed $11 million to employees for baggage handling and on-time performance in the month of January; this distribution of $100 per employee is part of the company’s Triple Play program which measures on-time arrivals and baggage performance as reported in the DOT’s Air Travel Consumer Report (ATCR)
- Conducted first joint Captain Leadership Training with newly promoted captains from both airlines
- On April 9, Piedmont flight attendants ratified a new five-year Collective Bargaining Agreement
- Opened a new Admirals Club lounge at the company’s Philadelphia (PHL) hub
Shares of American Airlines were up 0.8 percent to $37.40 on Thursday.
About American Airlines Group
American Airlines Group (NASDAQ: AAL) is the holding company for American Airlines and US Airways. Together with wholly owned and third-party regional carriers operating as American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to 339 destinations in 54 countries from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. American’s AAdvantage and US Airways Dividend Miles programs allow members to earn and redeem miles for travel and everyday purchases as well as flight upgrades, vacation packages, car rentals, hotel stays and other retail products. American is a founding member of the oneworld alliance, whose members and members-elect serve nearly 1,000 destinations with 14,250 daily flights to 150 countries. Connect with American on Twitter @AmericanAir or Facebook.com/AmericanAirlines and follow US Airways on Twitter @USAirways and on Facebook.com/USAirways.