video Video
American's profit nearly doubles
Friday, July 24, 2015 - 01:12
A huge drop in fuel costs drove quarterly profit to a record high at the U.S.' largest airline, offsetting a fall in revenue. Fred Katayama reports.
▲ Hide Transcript
▶ View Transcript
Quarterly profit nearly doubled at American Airlines to a record of $1.7 billion. Driving those earnings: a huge drop in fuel costs. Those significantly lower expenses helped the U.S.' largest airline offset a drop in revenue caused by severe pricing competition with Southwest and weakness in some international markets. American announced that it'll buy back $2 billion worth of additional shares by the end of next year. Stifel Nicolaus analyst Joseph DeNardi said, "Assuming the fuel price environment remains stable, we suspect that could be accelerated." But American's shares, which have fallen more than 20 percent this year, dropped at the start of trading. Its president said in an investors call that passenger revenue will keep falling until the second half of next year. Airline stocks have come under pressure as investors worry that the carriers benefiting from cheap fuel will revert to their bad habit of aggressively boosting capacity and oversupplying the market. But American cut its capacity growth forecast for 2015 earlier this month. That comes as the airlines face a Justice Department probe into whether they're coordinating pricing.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code
American's profit nearly doubles
Friday, July 24, 2015 - 01:12
Top News »
3:11pm BST - (1:26)
1:36pm BST - (2:16)
12:49pm BST - (1:40)
1:18am BST - (1:27)
Tue, 24 Apr, 2018 - (1:07)
Tue, 24 Apr, 2018 - (0:37)
Tue, 24 Apr, 2018 - (1:43)
Tue, 24 Apr, 2018 - (1:54)
Tue, 24 Apr, 2018 - (1:24)
Tue, 24 Apr, 2018 - (1:51)
Tue, 24 Apr, 2018 - (1:29)
Mon, 23 Apr, 2018 - (0:56)
Editors' Picks »
10:15am BST - (1:59)
Tue, 24 Apr, 2018 - (2:00)
Tue, 24 Apr, 2018 - (1:36)
Mon, 23 Apr, 2018 - (1:56)
Fri, 20 Apr, 2018 - (1:24)
Fri, 20 Apr, 2018 - (2:04)
Thu, 19 Apr, 2018 - (1:45)
Tue, 17 Apr, 2018 - (2:44)
Tue, 17 Apr, 2018 - (2:15)
Most Popular »
Wed, 19 Apr, 2017 - (0:57)
Wed, 27 Sep, 2017 - (1:11)
Wed, 15 Mar, 2017 - (1:40)
Mon, 11 Jul, 2011 - (2:56)
Fri, 26 May, 2017 - (1:51)
Wed, 27 Apr, 2016 - (2:06)
Wed, 10 Dec, 2014 - (1:28)
Business »
11:01pm BST - (1:32)
10:18pm BST - (1:28)
10:15pm BST - (1:17)
8:51pm BST - (1:23)
8:00pm BST - (5:20)
7:20pm BST - (1:00)
7:20pm BST - (1:56)
5:55pm BST - (3:22)
4:31pm BST - (1:18)
4:29pm BST - (0:51)
4:00pm BST - (1:20)
3:37pm BST - (1:12)
Featured Videos
Driverless car fleet plans London to Oxford run
A fleet of autonomous cars could take to Britain's roads later this year with advanced trials of a ÂŁ13 million project well under way
UK royals Kate and William have baby boy
It's a boy. Britain's Duchess of Cambridge has given birth to her third child, and second son, with husband Prince William
Aussie pilot Hall soars to victory in Cannes
Australian pilot Matt Hall claims victory in the second leg of the Red Bull Air Race world championship in Cannes, France
Luxury liner Queen Elizabeth II reopens as floating hotel
One of the world's most famous ships is now a floating hotel permanently moored at Dubai's Mina Rashid port
World Toad in the Hole Championships
The aim of the traditional pub game originating from France is to land as many large brass coins or 'toads' in a table's small hole
Technology »
5:59pm BST - (2:04)
3:17pm BST - (1:49)
Tue, 24 Apr, 2018 - (2:13)
Tue, 24 Apr, 2018 - (1:48)
Mon, 23 Apr, 2018 - (1:55)
Sun, 22 Apr, 2018 - (1:30)
Fri, 20 Apr, 2018 - (1:50)
Entertainment »
1:16am BST - (1:17)
Tue, 24 Apr, 2018 - (1:38)
Tue, 24 Apr, 2018 - (1:51)
Tue, 24 Apr, 2018 - (1:18)
Tue, 24 Apr, 2018 - (1:25)
Tue, 24 Apr, 2018 - (2:02)
Mon, 23 Apr, 2018 - (1:28)
Mon, 23 Apr, 2018 - (1:39)
Mon, 23 Apr, 2018 - (2:11)
Mon, 23 Apr, 2018 - (1:50)
Mon, 23 Apr, 2018 - (0:39)
Sports And Leisure »
10:14am BST - (0:55)
Tue, 24 Apr, 2018 - (0:47)
Mon, 23 Apr, 2018 - (1:17)
Mon, 23 Apr, 2018 - (2:38)
Mon, 23 Apr, 2018 - (1:27)
Mon, 23 Apr, 2018 - (1:17)
Mon, 23 Apr, 2018 - (1:30)
Mon, 23 Apr, 2018 - (1:40)
Mon, 23 Apr, 2018 - (1:07)
Fri, 20 Apr, 2018 - (1:08)
Oddly Enough »
9:30pm BST - (1:10)
Mon, 23 Apr, 2018 - (0:45)
Fri, 20 Apr, 2018 - (1:00)
Fri, 20 Apr, 2018 - (1:27)
Thu, 19 Apr, 2018 - (0:53)
Thu, 19 Apr, 2018 - (0:53)
Thu, 19 Apr, 2018 - (2:22)
Tue, 17 Apr, 2018 - (1:33)
Tue, 17 Apr, 2018 - (1:27)
Dateline Asia »
Tue, 05 Dec, 2017 - (2:06)
Tue, 05 Dec, 2017 - (2:11)
Fri, 01 Dec, 2017 - (2:04)
Thu, 30 Nov, 2017 - (2:10)
Thu, 30 Nov, 2017 - (2:14)
Wed, 29 Nov, 2017 - (2:11)
Tue, 28 Nov, 2017 - (1:55)
Tue, 28 Nov, 2017 - (2:21)
Mon, 27 Nov, 2017 - (2:25)
Fri, 24 Nov, 2017 - (2:16)
Fri, 24 Nov, 2017 - (2:14)
Thu, 23 Nov, 2017 - (2:18)