American Airlines Q3 GAAP net profit $737 million
This compares to a GAAP net profit of $1.7 billion in the third quarter 2015, or $2.49 per diluted share.
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 $452 million provision for income taxes at an effective rate of approximately 38 percent, of which $449 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 a third quarter 2016 GAAP pre-tax income of $1.2 billion, and pre-tax income excluding net special charges of $1.5 billion. This compares to a third quarter 2015 GAAP pre-tax income of $1.7 billion, and pre-tax income excluding net special charges of $1.9 billion.
Adjusted1 third quarter 2016 earnings per diluted share was $2.80, up from $2.77 per diluted share in the third quarter of 2015. ■