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Today, American reported a third quarter 2015 net income of $1.9 billion, excluding net special charges*, or $2.77 per diluted share. This is the highest quarterly
profit in our companys history, beating the previous record, which was set just last quarter. This represents a 54 percent improvement versus our third quarter
2014 net income of $1.2 billion, excluding net special charges, or $1.66 per diluted share.
* Special items are unusual or nonrecurring charges and credits that are not incurred as part of our normal business operations. By excluding special items, our financial results are more indicative of our ongoing performance
and more comparable to results reported by other airlines.
The Earnings Illustrated below provides details of the companys third quarter 2015 income statement. This statement is prepared in accordance with Generally Accepted
Accounting Principles (GAAP), which requires use of the accrual basis of accounting, meaning we record revenues when earned and expenses when incurred, not when
cash is received or paid. It is important to note that our reported net income does not equal the change in our cash balance for the year. There are many activities
that impact our cash balance that are not reflected in our income statement, including payments on our debt, and purchases of assets such as aircraft and spare parts.
Operating Revenues
2. Regional
revenue
Passenger revenue
collected from
mainline flights is
our largest revenue
source.
$7,654
3. Cargo
revenue
Passenger revenue
from our wholly
owned and contract
regional carrier flights
is also an important
source of revenue.
$1,699
4. Other revenue
Revenue from
transporting mail and
freight
A. Total
Operating
Revenues
(the sum of
items 14)
$180
$1,173
$10,706
Operating Expenses
From our operating revenue, the following costs, known as operating expenses, must be subtracted.
. Fuel and
5
related taxes
6. Salaries,
wages and
benefits
-$1,593
-$2,404
11. Selling
expenses
We lease some of
the airplanes we fly
and these are the
associated rental
charges.
-$366
-$1,518
12. Depreciation
and amortization
8. Maintenance
expenses
10. Aircraft
rent
-$308
7. Regional
expenses
-$456
-$432
Includes expenses
such as crew
hotels, catering
and passenger
inconvenience costs
B. Total
Operating
Expenses
(the sum of
items 514)
$8,707
$1,999
-$336
-$163
-$1,131
-$290
$1,709
-$16
Income tax provision includes $10 million of state and international income tax expense related to certain states and countries
where our net operating loss carry forwards are limited or unavailable to be used and a special non-cash deferred income tax
charge of $6 million related to certain indefinite-lived intangible assets.
$1,693
$192
Special Items are unusual or nonrecurring charges and credits that are not incurred as part of our normal business operations. By excluding special items,
our financial results are more indicative of our ongoing performance and more comparable to results reported by other airlines. For the quarter, net special
charges of $192 million were made up of $163 million of mainline special charges (No. 13), $2 million of regional special charges (No. 7), $21 million of
nonoperating special credits (D) and a $6 million non-cash special tax provision (No. 15).
$1,885
(or $2.77 per
diluted share)
Work crews installed new signs, like the one above at CLT, across the system in
advance of the cutover to a single Passenger Service System on Oct. 17. The
change, implemented at airports large and small, signals to our customers that
we are one integrated airline.
Fast
Facts