American Airlines said it earned a record $1.7 billion in the second quarter, almost doubling its profits from the same period last year.
“Reporting the highest quarterly profit in our history is another indication that our team is on the path to restoring American as the greatest airline in the world,” said American chief executive Doug Parker.
The Fort Worth-based carrier benefited from significantly lower fuel prices during the quarter as it paid 37 percent less for jet fuel. However, revenues at the Fort Worth-based carrier declined 4.6 percent to $10.8 billion as its planes were not as full as they were in the second quarter of 2014.
American paid an average of $1.90 per gallon of jet fuel compared to $3.03 in the second quarter of 2014. The company also increased its network capacity by 1.9 percent in the quarter.
Excluding $150 million in net accounting items, American said its net income was $1.9 billion, or $2.62 per share, beating Wall Street analysts’ estimates of $2.60 per share for the quarter.
The carrier announced an additional $2 billion share repurchase plan to be completed by the end of 2016. American had previously announced a $2 billion share repurchase plan in January and has already bought $943 milllion in shares under that program. American also declared a 10 cent dividend to pay to shareholders on August 24.
American executives will discuss the earnings results on a conference call with investors at 7:30 a.m. CDT this morning.