Airlines have been helped recently by decreasing prices on fuel. American Airlines has announced a record $1.7 billion dollars in third quarter profits reportedly due to the lower costs for fuel. The pricing per diluted share was reported to be $2.49. This profit is in stark contrast to 2014 when the airline made just $928 million. This last quarter is the highest profit for the airline in history.
The news is great for American Airlines after recently completing an integration and merger with the former US Airways airline which proceeded without any interruptions to flights or ticketing system. The merger between the two large airlines was approved in late 2013.
American Airlines Group stock increased 3.8% to $45.99 in pre-market trading last reported early Friday.
During a conference call with reporters discussing the third quarter, CEO Douglas Parker mentioned the merger saying, “Our team did it flawlessly. We couldn’t be happier…We are well on our way to building the best airline in the world.”
The call noted that despite a drop in the airline revenue, the profit came to such a high number due to the increased drop in expenses for the company especially the fuel costs which were much lower than in previous years. Reports indicate the fuel dropped almost 44% over 2014.
More positive news for the airlines was the recent tentative agreement between American Airlines and the customer service agents employed by the company which numbered close to 15,000. This agreement should help eliminate one contentious issue the airline faced and put it on track for future growth and stability.
CEO Parker refuted claims that the profit was solely due to dropping prices for oil citing the same pricing in 2005 where the industry as a whole lost billions of dollars. Parker updated those listening on the conference call that the profits for airlines this year would be in the multiple billions citing the mergers as a key point in these positive times.