American Airlines Group reported Friday a second-quarter net profit of $950 million, or $1.68 per diluted share, using Generally Accepted Accounting Principles.
This compares to a GAAP net profit of $1.7 billion in the second quarter 2015, or $2.41 per diluted share.
The air carrier said the results reflect a reversal of the valuation allowance on the deferred tax assets as of Dec. 31, 2015. American's 2016 results include a $543 million provision for income taxes at an effective rate of approximately 38 percent, of which $541 million is noncash due to net operating loss utilization. No tax provision for federal income taxes was recorded in 2015.
The impact of the year-over-year change in noncash income tax expense is removed by comparing pre-tax income. American reported GAAP pre-tax income in the second quarter of $1.5 billion, and pre-tax income excluding special charges of $1.6 billion.
These pre-tax earnings compare to $1.7 billion GAAP and $1.9 billion excluding special charges reported in the second quarter of 2015.
Total revenue in the second quarter of 2016 was $10.4 billion, down from $10.8 billion during the second quarter of 2015.
"These strong second-quarter results are the result of the hard work by our people to improve every aspect of our airline. The more than 100,000 team members of American Airlines are doing an outstanding job of taking care of our customers," CEO Doug Parker said in a statement.
"In addition, our recently announced AAdvantage credit card agreements show that the world's largest airline network is a powerful draw for both our business partners and our customers."
2Q 20162Q 2015YTD 2016YTD 2015Total revenue$10.4 B$10.8 B$19.8 B$20.7 BNet income$950 M$1.7 B$1.7 B$2.6 BNet per share$1.68$2.41$2.80$3.70
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