American Airlines Earning Sharply Fall
American Airlines Earning Reports, Airbus A330-300
American Airlines Earning Release Reports. The largest airline in the world, reported Thursday a 56 percent drop in earnings for the third quarter of this year compared to the same period last year.
The Texas-based company said in a report that earned USD 737 million in the third quarter of 2016. Comparing to USD 1.69 billion the previous year.
In the second quarter of this year, profits of the company reported a drop of 44 percent as the company took to reduce operating costs. During the period from April to June 2016, the airline reported a net profit of USD 950 million compared to USD 1.7 billion for the same period last year.
The company refer to lower load factor high labor costs by decreasing profit for the third quarter of this year, saying that third-quarter earnings would have fallen even more. Thanks to lower fuel prices these days.
The airlines and its subsidiary airlines expense 11 percent less fuel than they did in the third quarter of last year. Labor costs rose 15 percent, however, as union workers won pay raises to offset the years of lower wages after the crisis of the industry in the past decade.
Doug Parker, CEO of AAL, said the US airline industry It has been transformed, and American Airlines is well positioned for success in the new world. American Airlines still known as largest airline in the world with nearly 1,000 fleet. They also fly to more than 350 destinations worldwide. Currently they have placed order for 100 Boeing 737 MAX 8s and 22 newest Airbus A350-900s. It would make them even bigger than now.
