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American Airlines Group Inc. reported a second-quarter profit that topped analyst estimates as lower fuel prices helped offset the effects of a sluggish global economy.
Adjusted earnings were $1.77 a share, exceeding the $1.68 average of analyst estimates compiled by Bloomberg. Revenue fell 4.3 percent to $10.4 billion, the company said in a statement. That compared with $10.3 billion anticipated by analysts.
The airline will defer 22 Airbus Group SE A350 XWB aircraft to late 2018 through 2022, with an average deferral of 26 months. The change will reduce American’s capital spending plans for the next two years, the carrier said. The company was to take its first A350 XWB in spring 2018.
American said last week it would cut growth plans by 0.5 percentage point to 2 percent for 2016, as airlines seek to address a supply glut that has led to more than a year of declines in passenger revenue for each seat flown a mile. Delta Air Lines Inc. and United Continental Holdings Inc. have also announced capacity reductions since then.
Shares were little changed in New York before regular trading.
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©2016 Bloomberg L.P.
This article was written by MARY SCHLANGENSTEIN from Bloomberg and was legally licensed through the NewsCred publisher network.