American Airlines Q2 profit down 44%
American’s Q2 profit dropped 44%, hurt by a big provision for income tax. Total operating costs fell 3.3% to $8.61b in the quarter, with fuel costs declining 20%. Net income was 44% down at $950m as provisions for income tax surged to $543m from $15m. Total operating revenue declined 4.3% to $10.36b. Airline stocks have fallen in recent months amid growing investor concern that carriers will continue to add flights and push down prices despite insufficient demand, and that rebounding oil prices will add to their fuel costs. Economic slowdown abroad pose an even greater risk to revenue, with reluctance to buy tickets on US airlines to visit the US as the dollar rises in value against other currencies. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-07-25/oneworld/american-airlines-q2-profit-down-44
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American Airlines Q2 profit down 44%
American’s Q2 profit dropped 44%, hurt by a big provision for income tax. Total operating costs fell 3.3% to $8.61b in the quarter, with fuel costs declining 20%. Net income was 44% down at $950m as provisions for income tax surged to $543m from $15m. Total operating revenue declined 4.3% to $10.36b. Airline stocks have fallen in recent months amid growing investor concern that carriers will continue to add flights and push down prices despite insufficient demand, and that rebounding oil prices will add to their fuel costs. Economic slowdown abroad pose an even greater risk to revenue, with reluctance to buy tickets on US airlines to visit the US as the dollar rises in value against other currencies. <br/>
