American Airlines Group reports third quarter profit

American Airlines Group reported a GAAP net profit of US$737m in the third quarter 2016, this compares to a GAAP net profit of US$1.7bn in the third 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$452m provision for income taxes at an effective rate of approximately 38%, of which US$449m 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 a third quarter 2016 GAAP pre-tax income of US$1.2bn, and pre-tax income excluding net special charges of US$1.5bn. This compares to a third quarter 2015 GAAP pre-tax income of US$1.7bn, and pre-tax income excluding net special charges of US$1.9bn.