On Thursday, American Airlines Group registered immense profits in the third quarter of the year. The company has released a statement in which it claims that they owes to the dramatic reduction in fuel costs and the good image of staying clear of Ebola claims. The profits realized by this group nearly doubled that of the last quarter. This comes after the successful partnership with US Airways which also saw them exit the previous bankruptcy condition.
Moreover, increase in number of travellers this year and coming years has made several carriers to be confident of rise in their carrying capacity amidst stiff competition. Capital analyst Jim Corridore says that the airlines in the United States seem to be enjoying a favorable market as a result of the general increase in air travel demand. This is best confirmed by the average rise of one way fare by close to $2 among many airlines in the US this past week. The American Airline has maintained that it will favorable do away with the competition come 2015 and remain the best in the market with huge profit margins. This is seen to materialize taking into consideration the fact that it is the world’s largest airline in terms of passenger traffic.
The American Airline seems to be gaining largely from the fitting market this Quarter after realizing an average of $1.66 per diluted share; a figure beyond Wall Street’s expectation! The airline still expects a capacity growth of up to 3.0% next year. This it says in line with their plans of adding extra rows on planes using the domestic routes. Its counterpart United States Airways also expects a slightly lower growth of about 2%. This comes a time when the other competitor airlines are experiencing drops in their profits with JetBlue and Southwest Airlines being the worst hit of all.