American Airlines' 2Q Earnings Beat Expectations

Industries Reuters

Since American and US Airways announced a year ago that they planned to merge, travelers have been eager to see how the airlines will resolve differences in amenities and frequent-flier programs. (REUTERS)

American Airlines Group Inc's quarterly profit plunged 44 percent, hurt by a big provision for income tax.

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The world's largest airline earned $950 million, or $1.68 per share, in the second quarter ended June 30 compared with $1.70 billion, or $2.41 per share, a year earlier.

Excluding items, the company earned $2.81 per share.

Analysts on average expected a profit of $1.68 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the numbers were comparable.

Provision for income tax surged to $543 million from $15 million.

(Reporting by Sweta Singh in Bengaluru and Jeffrey Dastin in New York; Editing by Kirti Pandey)