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American's total operating costs fell 3.3 percent to $8.61
billion in the second quarter, with fuel costs declining 20
percent.
Net income plunged 44 percent to $950 million as provisions for
income tax surged to $543 million from $15 million.
Excluding items, American's profit slumped to $1.77 per share
from $2.62, but handily beat the average analyst estimate of
$1.68, according to Thomson Reuters I/B/E/S.
Total operating revenue declined 4.3 percent to $10.36 billion
in the quarter ended June 30.
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 foreigners reluctant to buy tickets on U.S. airlines to
visit the United States as the dollar rises in value against
other currencies.
American's shares were down slightly at $34.85 in light
premarket trading on Friday.
Up to Thursday's close, the stock had fallen more than 17
percent this year.
(Reporting by Sweta Singh in Bengaluru and Jeffrey Dastin in New
York; Editing by Kirti Pandey)
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