American Air Reports Mixed Q1 Earnings

American Airlines reported first-quarter operating income up almost 10 percent at USD$1.335 billion as cheap fuel boosted its bottom line.

Net income, however, fell about 25 percent to USD$700 million, in part because it recorded additional non-cash taxes.

While American's fuel bill dropped by one third, its revenue fell as well, down 4 percent to USD$9.435 billion.

The airline said extra flights by rivals, soft demand for Latin America travel and the lower value of foreign sales in dollar terms pushed down passenger unit revenue 7.5 percent from a year ago.

Delta Air Lines had warned last week that average fares on European trips were continuing to fall as carriers across the Atlantic operated flights in excess of demand. Recent attacks in Brussels and Paris have also risked discouraging summer travel by US visitors.