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American, the world's largest airline, said income fell about 25
percent to $700 million, in part because it recorded additional
non-cash taxes. Excluding special items, it earned$1.25 per
share, above analysts' average estimate of $1.19 per share,
according to Thomson Reuters I/B/E/S.
While American's fuel bill dropped by one third, its revenue
fell as well.
The Fort-Worth, Texas based airline said extra flights by
rivals, soft demand for Latin America travel and the diminished
value of foreign sales in dollar terms pushed down passenger
unit revenue 7.5 percent from a year ago.
However, a smaller dip of 2.1 percent in the closely watched
financial measure for trans-Atlantic flights was encouraging,
Sterne Agee CRT analyst Adam Hackel said.
Rival Delta Air Lines Inc had warned last week that average
fares on European trips were continuing to fall as carriers
across the Atlantic operated flights in excess of demand. Recent
attacks in Brussels and Paris have also risked discouraging
summer trips by U.S. vacationers.
American's shares were up 1 percent in premarket trading.
(Reporting by Jeffrey Dastin in New York; Editing by Bernadette
Baum)
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