NEW YORK, Oct 28 (AFP): American Airlines reported recently a drop in third-quarter earnings on higher fuel prices, although strong demand for air travel boosted revenues.
Profits for the quarter ending September 30 were $341 million, down 48.4 per cent. Revenues rose 5.4 per cent to $11.6 billion.
Chief Executive Doug Parker said higher fuel prices lifted expenses by about $750 million compared with the year-ago period.
"We have moved quickly to adapt to the higher cost environment with lower planned capacity growth, the cancellation of unprofitable flying, deferral of new aircraft deliveries, and continued aggressive cost management," Parker said.
American announced previously that in response to higher fuel prices, it was trimming $1.2 billion in capital spending over the next three years by deferring delivery of 22 Airbus planes.
The airline has also been tweaking its "basic economy" programme by easing carry-on bag restrictions and expanding its "premium economy" offering on more flights. Airlines have introduced a range of seat offerings at different price points as a way to compete with bare-bones carriers and boost ticket prices.
American confirmed its full-year profit forecast between $4.50 and $5.00 per share. Shares rose 3.9 per cent in pre-market trading to $31.52.
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