American Airlines Shares Climb About 3% As Company Tops Profit Estimates

American Airlines Group Inc. shares rose almost 3% in premarket trade Friday, after the carrier beat profit estimates for the second quarter and increased its share buyback program. The company said it had net income of $1.71 billion, or $2.41 a share, in the second quarter, up from $864 million, or $1.17 a share, in the year-earlier period. Excluding special charges, EPS came to $2.62, topping the FactSet consensus of $2.60. Revenue fell 4.6% to $10.8 billion, just below the FactSet consensus of $10.9 billion. Available seat miles rose 1.9%, while passenger revenue per ASM fell 6.9% to 13.57 cents. Consolidated passenger yield eased 6.1% to 16.28 cents. Total operating costs fell 10.5% to $8.9 billion, mostly due to lower fuel costs. The airline said its board has approved the repurchase of an additional $2.0 billion of stock, bringing the total authorized to $4.0 billion. Shares are down 20% in the year so far, while the S&P 500 has gained 2%.