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American Airlines Q3 GAAP net profit $737 million

Staff Writer |
American Airlines Group reported its third quarter 2016 results. The company reported GAAP net profit of $737 million, or $1.40 per diluted share in the third quarter 2016.

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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.


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