American Airlines Group has reported its third-quarter results, showing third-quarter 2018 pretax profit of US$456 million compared to US$1,063 million the previous year.
Pretax earnings excluding net special items for the third quarter of 2018 were US$688 million, a US$485 million decrease from the third quarter of 2017, driven by higher fuel prices. In addition, the company’s third-quarter pretax earnings were negatively impacted by Hurricane Florence by approximately $50 million.
Strong demand for air travel drove a 5.4% year-over-year increase in third-quarter 2018 total revenue, to US$11.6 billion. Passenger revenue per available seat mile (PRASM) grew 1.8%, driven by a 2.2% increase in passenger yields.
Cargo revenue was up 16.4% to US$260 million due to a 12.1% increase in yield and a 3.8% increase in volume. Other revenue was up 14.5% to US$738 million due primarily to higher loyalty revenue. Third-quarter total revenue per available seat mile (TRASM) increased by 2.6% compared to the third quarter 2017 on a 2.7% increase in total available seat miles.
The improvement in revenue was offset by the significant increase in fuel prices. Total third-quarter 2018 operating expenses were US$10.9 billion, up 12.4% year-over-year, driven by a 42.6% increase in consolidated fuel expense.
