American Airlines’ Quarterly Profits Continue to Rise After Bankruptcy
Pilots talk as they look at the tail of an American Airlines aircraft following the announcement of the planned merger of American Airlines and US Airways, at Dallas-Ft Worth International Airport February 14, 2013. Mike Stone / Reuters
Taking an airline from a $238 million Q3 loss to a $289 million Q3 profit in one year is usually a cause for celebration, but in this case, American’s strong rebound from bankruptcy could hurt its chances in completing a merger with US Airways.
The carrier, which is looking to emerge from Chapter 11 protection by merging with US Airways Group Inc, had net income of $289 million, or 76 cents a share, in the third quarter, compared with a loss of $238 million, or 71 cents a share, a year earlier.
Revenue rose 6 percent to $6.8 billion.
The U.S. Justice Department sued to block the merger in August, and a federal trial in the case is set to begin next month.
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