American Q2 net profit down 15.5%; Parker emphasises long-term value
American Airlines posted a Q2 2017 net profit of US$803m, down 15.5% from net income of $950m in the 2016 June quarter, and chairman and CE Doug Parker continues to argue the company is significantly undervalued in the stock market. During a conference call with Wall Street analysts, Parker repeatedly encouraged investors to focus on the long-term value of American and the strength of the US airline industry, rather than shorter-term considerations such as American’s recent pay raise for pilots and flight attendants that is driving up labour costs or fluctuations in airline ticket pricing. “We’re undervalued,” Parker said. “[investors]…can’t just believe that the industry has gotten well, [Investors should] look at American not just on what’s going to happen in the next 3 weeks, but what’s going to happen in the next 3 years”. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-07-31/oneworld/american-q2-net-profit-down-15-5-parker-emphasises-long-term-value
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American Q2 net profit down 15.5%; Parker emphasises long-term value
American Airlines posted a Q2 2017 net profit of US$803m, down 15.5% from net income of $950m in the 2016 June quarter, and chairman and CE Doug Parker continues to argue the company is significantly undervalued in the stock market. During a conference call with Wall Street analysts, Parker repeatedly encouraged investors to focus on the long-term value of American and the strength of the US airline industry, rather than shorter-term considerations such as American’s recent pay raise for pilots and flight attendants that is driving up labour costs or fluctuations in airline ticket pricing. “We’re undervalued,” Parker said. “[investors]…can’t just believe that the industry has gotten well, [Investors should] look at American not just on what’s going to happen in the next 3 weeks, but what’s going to happen in the next 3 years”. <br/>
