American Airlines Group reported GAAP net profit of US$950m, compared to a GAAP net profit of US$1.7bn in the second quarter 2015. As a result of the reversal of the valuation allowance on the Company’s deferred tax assets as of December 31, 2015, the Company’s 2016 results include a US$543m provision for income taxes at an effective rate of approximately 38%, of which US$541m is non-cash due to net operating loss utilization. There was no tax provision for federal income taxes recorded in 2015. The impact of the year-over-year change in non-cash income tax expense is removed by comparing pre-tax income. The Company reported GAAP pre-tax income in the second quarter of U$1.5bn, and pre-tax income excluding special charges of US$1.6bn. These are the second highest second quarter pre-tax earnings in Company history, behind only the US$1.7bn GAAP and US$1.9bn excluding special charges, reported in the second quarter of 2015. Second quarter 2016 revenue was hurt by competitive capacity growth, continued global macroeconomic softness and foreign currency weakness. Total revenue in the second quarter was US$10.4bn, a decrease of 4.3% versus the second quarter of 2015 on a 1.9% increase in total available seat miles (ASMs). Consolidated passenger revenue per ASM (PRASM) was 12.71 cents, down 6.3% versus the second quarter of 2015. Consolidated passenger yield was 15.42 cents, down 5.3% percent year-over-year.
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Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
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Richmond, BC V6X 3M1
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[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada