Skift Take
American had a lackluster third quarter. Executives say its on the cusp of big profits ahead.
American Airlines wants investors to see the forest and not the trees when it comes to earnings.
The Fort Worth, Texas-based carrier lagged its peers in the third quarter with an operating profit margin, excluding special items, of just 5.4%. That came despite record revenues of $13.5 billion and an operating profit, excluding special items, of $728 million. With those items, which were related to one-time payments to pilots under the new contract they ratified in August, American's operating loss was $223 million.
Not exactly the dandy quarter Delta Air Lines and United Airlines had with double-digit profit margins.
That's why American's executives, when asked about the headwinds the airline faced, emphasized the many "tailwinds" ahead.
"We do have some headwinds on salaries and benefits," American Chief Financial Officer Devon May said during the airline's third-quarter earnings call on Thursday. For one, the airline continues to nego