The merger of American Airlines and US Airways appears to be off to a good start.
The combined carrier reported its first full quarter of earnings Thursday morning, posting a profit of $480 million.
“In the entire history of American Airlines, we have never earned $400 million in the first three months of a year, but in the first three months since the merger, we did,” said American chief executive Doug Parker in a letter to employees.
Revenues were about $10 billion, up 5.6 percent when compared to the two carriers' combined revenues in the first quarter of 2013 prior to the merger. The carrier also grew capacity by 2.0 percent in the quarter.
The Fort Worth-based carrier also ended the quarter with $10.6 billion in cash and short-term investments which includes $947 million in restricted cash.
Excluding one-time accounting items, the carrier reported a profit of $402 million, or 54 cents per share, beating Wall Street analysts’ earnings estimate of 48 cents per share.
Parker and other American executives will discuss the earnings results on a conference call at 10:30 a.m. CDT.