Earnings Potential, results announced Tuesday

[NYGiantsFan90]

American Airlines Group will release its quarterly report on Tuesday, and investors are anxious to see the airline's results after its recent merger with US Airways. Even as Delta Air Lines has posted impressive earnings results, American Airlines shareholders want to know whether the newly combined entity will continue to have the same competitive difficulties that it and United Continental have faced in trying to hold back Delta's impressive growth lately.
 

http://www.dailyfinance.com/2014/01/26/american-airlines-group-inc-earnings-how-will-the/

 

[wings396]

IMO, It's way too early in the game to determine anything based on the profits of AAG. While both AA/US are under the same parent Co, they are just about as separate as they can be. They just started to combine some facilities, and have also just started to code share a few weeks ago as well. Once the schedules of both airlines have been meshed together along with US moving into OW can anyone expect to get a clearer picture of how the future profits of the combined carriers will look.

 

[FWAAA]

Agreed that it's too early to draw any conclusions about the merger from tomorrow's earnings announcement.  They're still two separate airlines.   
 
My prediction is that the profits of the combined airlines will total about $2.2 billion for 2013, excluding special items, reorganization and merger-related items.
 
For the first three quarters of 2013,  old AA reported profits of $895 million, excluding all the special items, etc.    Old US reported profits of $831 million for the same periods of 2013.   That's $1.726 billion.    While I'm guessing that both airlines had good fourth quarters, the retroactive pay increases at old US to pilots will temper the fourth quarter profits.   The stormy weather in December will probably shave several tens of millions off the profits as well.