Thursday, February 26, 2015 4:38:20 PM
American Airlines (AAL) reported a record net profit of $597 million in 4Q14 compared to a loss of $1,947 in 4Q13. This was driven by lower interest expenses, which decreased by 21% during the quarter. Plus, tax expenses decreased to $30 million in 4Q14, compared to $270 million incurred in 4Q13.
Reorganization expenses
Reorganization expenses amounting to $2,220 million in 4Q13 led to losses in 4Q14. The reorganization expense was related to aircraft and facility financing renegotiations and professional fees after filing for relief under Chapter 11. American had $9.5 billion gross net operating losses as on December 31, 2013, that could reduce its tax expense during the year.
American’s net margin in 2014 was 6.8%, higher than Delta Air Lines’s (DAL) 1.6%, United Continental Holdings’s (UAL) 2.9%, and Southwest Airlines’s (LUV) 6.1%. However, American’s net margin was lower than Alaska Air Group’s (ALK) 11.3% and JetBlue Airways’s (JBLU) 6.9%.
For 1Q15, management expects the company’s pre-tax margin to be between 13%–15%. Higher margins of airline stocks have a positive impact on Transportation ETFs such as the iShares Transportation Average ETF (IYT) and the SPDR S&P Transportation ETF (XTN) that invest 30%–40% of their holdings in airline stocks.
Recent AAL News
- REGISTRATION OPENS SOON FOR AIRLINE DISTRIBUTION® 2025 • PR Newswire (US) • 09/17/2024 12:00:00 PM
- The Gross Law Firm Notifies Shareholders of American Airlines Group Inc.(AAL) of a Class Action Lawsuit and an Upcoming Deadline • PR Newswire (US) • 09/16/2024 09:45:00 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- The Gross Law Firm Reminds Shareholders of a Lead Plaintiff Deadline of September 16, 2024 in American Airlines Lawsuit - AAL • PR Newswire (US) • 09/12/2024 09:45:00 AM
- Klarna partners with UATP to tap the $1 trillion air travel industry • PR Newswire (US) • 09/10/2024 12:00:00 PM
- American Airlines Group Inc. Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm for More Information - AAL • PR Newswire (US) • 09/09/2024 02:30:00 PM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Palantir Technologies, Dell Technologies, and Erie Indemnity Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600 • PR Newswire (US) • 09/06/2024 10:43:00 PM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- American Airlines Group Inc. Class Action: The Gross Law Firm Reminds American Airlines Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of September 16, 2024 - AAL • PR Newswire (US) • 09/05/2024 09:45:00 AM
- The Gross Law Firm Notifies American Airlines Group Inc. Investors of a Class Action Lawsuit and Upcoming Deadline - AAL • PR Newswire (US) • 08/29/2024 09:55:00 AM
- W2 by GO7 joins the UATP Network as its Newest Issuer • PR Newswire (US) • 08/27/2024 12:00:00 PM
- American Airlines Group Inc. Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm for More Information - AAL • PR Newswire (US) • 08/26/2024 09:45:00 AM
- American Airlines Group Inc. Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm Before September 16, 2024 to Discuss Your Rights - AAL • PR Newswire (US) • 08/22/2024 09:45:00 AM
- Moore Law PLLC Encourages Investors in American Airlines Group Inc. to Contact Law Firm • PR Newswire (US) • 08/20/2024 12:03:00 AM
- American Airlines Group Inc. Securities Fraud Class Action Lawsuit Pending: Contact The Gross Law Firm Before September 16, 2024 to Discuss Your Rights - AAL • PR Newswire (US) • 08/19/2024 09:45:00 AM
- American Airlines and Stand Up To Cancer (SU2C) campaign takes off to accelerate funding for cancer research • PR Newswire (US) • 08/15/2024 02:00:00 PM
- American Airlines Group Inc. Securities Fraud Class Action Lawsuit Pending: Contact The Gross Law Firm Before September 16, 2024 to Discuss Your Rights - AAL • PR Newswire (US) • 08/15/2024 09:45:00 AM
- Wego Joins UATP Network, Enhancing Supplier Relationships in MENA Region • PR Newswire (US) • 08/13/2024 12:00:00 PM
- September 16, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against AAL • PR Newswire (US) • 08/08/2024 09:45:00 AM
- Investors who lost money on American Airlines Group Inc.(AAL) should contact The Gross Law Firm about pending Class Action - AAL • PR Newswire (US) • 08/05/2024 09:45:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/01/2024 08:49:59 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/01/2024 08:48:06 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 08:30:22 PM
- American Airlines Names Howard Ungerleider to its Board of Directors • GlobeNewswire Inc. • 07/31/2024 08:30:00 PM
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