2016 Third Quarter Profit
Thursday, October 20, 2016
- A Special Jetwire.
A Message from Doug Parker
Dear Team Members
Today American announced a pre-tax profit of $1.5 billion (excluding special charges) for the third quarter of 2016 and a net profit of $933 million. This is a tremendous accomplishment thanks to the team of more than 100,000 employees. These profits led us to accrue an additional $86 million for our profit sharing pool, for a total of $257 million so far this year.
The third quarter was also monumental for our integration. More than 80,000 employees are now wearing the same uniform, showing the world we are truly one team. And we successfully moved to a single FOS partition (SFP) without a single cutover-related delay or disruption. It took more than 20 departments to pull that off, and the result can be seen every day as our pilots are now free to move across domiciles and the fleet.
Another milestone this past quarter was the unprecedented agreement with the TWU-IAM Association to implement pay increases for our Tech Ops and Fleet Service colleagues while negotiations continue for a joint collective bargaining agreement. We also reached tentative agreements for our flight crew training and simulator instructors, as well as our flight simulator engineers. With these, we have now offered industry-leading wages for all of our represented workgroups, and we’ve done that less than three years after our merger closed.
We’re continuing to focus on our customers’ needs and wants. We added 10 new destinations to our network in the third quarter, including five in Cuba alone, and launched new service from LAX to Hong Kong. Next month we’ll begin daily flights to Havana, cementing our place as the largest carrier to Cuba. For customers flying domestically, we now offer complimentary inflight entertainment in the main cabin. And finally, we added 12 new aircraft as part of our fleet renewal program, including our first Boeing 787-9, while retiring 20 MD-80 aircraft in just one day.
While some integration work remains, we’re making great strides together. Thanks to you, we are well on our way to restoring American as the greatest airline in the world. Congratulations and thank you for all you do to take care of our customers and each other.