American Airlines Beats On First-quarter Earnings

Shares of American Airlines reported net income of $700 million, or $1.14 per share, down from $932 million, or $1.30 per share, in the year-earlier period. The company reported adjusted earnings per share of $1.99, above the FactSet consensus of $1.19. American Airline's 2016 results will include a provision for income taxes at a 38 percent rate. The company reported revenue of $9.43 billion, down from $9.83 billion in the year-earlier period and below the FactSet consensus of $9.44 billion. American Airlines said revenue was hurt by "competitive capacity growth," a weak Latin American economy and foreign currency weakness. The company authorized a $2 billion share repurchase program which will end at the end of 2017. American Airlines shares were up 1% in premarket trade.