American Airlines earns $2.7 billion 2016 net profit
American Airlines has topped $10 billion in combined net profits for 2015 and 2016, earning net income of $2.7 billion in 2016 following a net profit of $7.6 billion in 2015.
Though net income was down 64.8% in 2016 compared to 2015, significant non-cash income tax provisions related to valuation in each year skews year-over-year comparisons. Dallas/Fort Worth-based American reported a non-cash tax charge of $1.6 billion in 2016 while it gained a $3 billion tax benefit in 2015. On a pre-tax basis, the airline posted a profit of $4.3 billion in 2016, down 6.9% from $4.6 billion in 2015.
American’s 2016 revenue was $40.2 billion, down 2% year-over-year, while expenses were essentially flat at $34.9 billion. Operating profit was $5.3 billion, down 14.8% from operating income of $6.2 billion in 2015.
American’s consolidated system traffic rose 0.2% year-over-year in 2016 to 223.5 billion RPMs on a 1.7% increase in capacity to 273.4 billion ASMs, producing a load factor of 81.7%, down 1.3 points. Yield fell 2.8% to 15.5 cents.
American noted that the final US Airways mainline aircraft has been painted in American’s livery, and it plans to complete the painting of all US Airways Express-branded regional aircraft in 2017.
Source: Air Transport World/ January 2017
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