American Air's Q2 Results Reflect Headwinds In Airline Sector

Shares of American Airlines Group Inc (NASDAQ: AAL) were trading lower by nearly 2 percent Friday morning after the company reported second quarter results.

American Airlines said it earned $1.68 per share in the second quarter on revenue of $10.363 billion. Wall Street analysts were expecting the company to earn $1.56 per share on revenue of $10.27 billion.

In the same quarter a year ago, the airliner earned $2.62 per share on $10.83 billion compared to expectations of $2.62 per share on revenue of $10.89 billion.

The company said its second quarter revenue was negatively impacted by "ompetitive capacity growth, continued global macroeconomic softness and foreign currency weakness." These factors contributed to a 4.3 percent drop in revenue compared to a year ago.

Consolidated passenger revenue per available seat mile (PRASM) was 12.71 cents, also down 6.3 percent year-over-year while consolidated passenger yield also fell 5.3 percent from a year ago to 15.42 cents.

American Airlines also reported a GAAP net profit of $950 million in the quarter, marking a decrease from a net profit of $1.7 billion in the same quarter a year ago. The current quarter's profit was impacted by a $543 million provision for income taxes.

The company said it ended the second quarter with approximately $9.5 billion in total available liquidity and held a restricted cash position of $640 million.

Management will host a conference call to discuss the quarterly results is scheduled for 7:30 a.m. CDT.