American Airlines is reporting its highest quarterly profits in the company’s history. Profit and revenue are up and the company will share some of the gains with shareholders.
American Airlines Group Inc. said Thursday that it earned $864 million in the second quarter, up from the $507 million that American and US Airways earned separately a year ago, before their merger.
Excluding specials charges, the company said it earned a record $1.46 billion, or $1.98 per share. Analysts surveyed by FactSet expected $1.95.
Revenue is up 10.2 percent as passengers paid 6.5 percent more per mile for their tickets.
American also said it will pay its first dividend since 1980, buy back up to $1 billion in shares, and spend money to pay off debt and aircraft leases.
The company said they plan on talking to its 100,000 employees Thursday to share the news and how they plan to move forward. The profits will go to making pre-payments on debt and aircraft leases, and will also make additional pension contributions.
American Airlines Chairman and CEO Doug Parker said the next step is finishing the merger with U.S. Airways. He said that includes getting down to a single reservation system and operating system.