American Airlines Q2 adjusted EPS record $2.81Staff Writer | July 22, 2016
American Airlines Group reported its second quarter 2016 results. GAAP net profit was $950 million, or $1.68 per diluted share.
American Airlines GAAP net profit was $950 million
As a result of the reversal of the valuation allowance on the company’s deferred tax assets as of December 31, 2015, the company’s 2016 results include a $543 million provision for income taxes at an effective rate of approximately 38 percent, of which $541 million is non-cash due to net operating loss utilization.
There was no tax provision for federal income taxes recorded in 2015.
The impact of the year-over-year change in non-cash income tax expense is removed by comparing pre-tax income.
The company reported GAAP pre-tax income in the second quarter of $1.5 billion, and pre-tax income excluding special charges of $1.6 billion.
These are the second highest second quarter pre-tax earnings in company history, behind only the $1.7 billion GAAP and $1.9 billion excluding special charges, reported in the second quarter of 2015.
Adjusted earnings per diluted share was a record $2.81, up 7 percent from $2.62 per diluted share in the second quarter of 2015. ■