American Airlines Group reported a full year 2016 GAAP net profit of $2.7 billion. Declared a dividend of $0.10 per share to stockholders.
American Airlines Group Inc. (NASDAQ:AAL) reported its fourth quarter and full year 2016 results. The Company’s earnings highlights include:
Fourth quarter 2016 pre-tax profit of $500 million, or $773 million excluding net special charges, and net profit of $289 million, or $475 million excluding net special charges;
Full year 2016 pre-tax profit of $4.3 billion, or $5.1 billion excluding net special charges, and net profit of $2.7 billion, or $3.2 billion excluding net special charges;
Fourth quarter Total Revenue per Available Seat Mile (TRASM) was up 1.3 percent year-over-year, marking the first year-over-year increase since the fourth quarter 2014;
The Company accrued approximately $57 million in the fourth quarter for its profit sharing plan, bringing the total accrual to $314 million for 2016;
Returned $606 million to stockholders through share repurchases and dividends in the fourth quarter, for a total of $4.6 billion in 2016. Announced a new $2.0 billion share repurchase authorization.
American Airlines reported a Generally Accepted Accounting Principles (GAAP) net profit of $289 million, or $0.56 per diluted share in the fourth quarter 2016. The fourth quarter 2016 results include a $211 million provision for income taxes, of which $207 million is non-cash due to net operating loss utilization. This compares to a GAAP net profit of $3.3 billion in the fourth quarter 2015, or $5.09 per diluted share, which included a non-cash $3.0 billion net special income tax benefit resulting from the reversal of the Company’s valuation allowance.
The Company reported a full year 2016 GAAP net profit of $2.7 billion, or $4.81 per diluted share, including a non-cash income tax provision of $1.6 billion. This compares to a GAAP net profit of $7.6 billion in 2015, or $11.07 per diluted share, which included the $3.0 billion non-cash income tax benefit.
Adjusted fourth quarter 2016 earnings per diluted share was $1.48, down from $2.00 per diluted share in the fourth quarter of 2015. Full year 2016 adjusted earnings per diluted share was $9.10, down $0.02 compared to 2015.
“The American Airlines team continued to produce outstanding results in 2016, and outsiders are taking notice. Air Transport World named American as its 2017 Airline of the Year, citing our team’s integration work, operational and customer service improvements, and the significant investments we are making in our product. This recognition is entirely due to the great work of our 120,000 team members. As we enter 2017, we will continue to make upgrades to American through new product initiatives. These include Basic Economy which will further our goal to offer the right fares and features for every customer, and, on international flights, our Premium Economy product. And no matter which product our customers choose, they’ll be transported on the youngest fleet among our large U.S. competitors” said Doug Parker, Chairman and CEO.
The Company also declared a dividend of $0.10 per share, to be paid on February 27, 2017, to stockholders of record as of February 13, 2017.