Less than three months after its rebirth, American Airlines Group Inc. (NYSE: AAL) is on pace for a record annual profit, according to analysts surveyed by Bloomberg. The consensus estimate of $3.5 billion would put it ahead of the $2.2 billion tally for Delta Air Lines Inc. (NYSE: DAL) and the $1.7 billion for United Continental Holdings Inc. (NYSE: UAL).
American CEO Doug Parker sees $1 billion in new revenue and savings by 2015, which would also put the airline ahead of its merger-built rivals. Neither Delta nor United reached $1 billion in new revenue and savings until the second full year of their mergers.
The previous industry record was Delta’s $2.7 billion profit in 2013. The new American emerged from bankruptcy and the merger of AMR and U.S. Airways Group on Dec. 9. The two airlines are working quickly to mesh operations, and the company hopes to have federal approval to operate as a single carrier in the second half of 2015.
Not everything is going absolutely smoothly. Earlier this week U.S. Airway pilots sued their American Airlines counterparts over seniority rights.
But investors are please thus far. American Airlines shares are up about 57.7% since the IPO and reached a new high of $39.33 Thursday. The stock has outperformed both Delta and United in that time.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
