FORT WORTH, Texas _ American Airlines profits dropped 91 percent in the fourth quarter due to income tax provisions and higher fuel and labor costs.
The Fort Worth-based carrier posted net income of $289 million compared to $3.28 billion in the fourth quarter of 2015, when American reported a $3 billion income tax benefit. Revenues grew 1.7 percent in the fourth quarter to $9.8 billion.
"We are particularly pleased with our revenue performance," American chief executive Doug Parker said, noting that the airline's unit revenues improved for the first time in over two years.
American spent 17.4 percent more on salaries and wages in the quarter and 18.6 percent more on fuel. The carrier said it paid an average of $1.57 per gallon of fuel in the fourth quarter.
Excluding one-time accounting items, American reported fourth quarter income of 92 cents a share, matching Wall Street analysts' estimates, according to FactSet Research. However, shares of American stock declined almost 5 percent on Friday morning, trading around $47.26 a share.
For the full year, American reported net income of $2.68 billion with revenues of $40.18 billion.
The carrier set aside $314 million in a profit-sharing plan for its employees, who will receive their profit-sharing payment this spring. This is the first year that American will pay a profit sharing payment to employees since Parker announced the plan in March.
American also confirmed that it intends to refile its application with the U.S. Department of Transportation for an expanded joint venture with Qantas Airways. In November, the DOT denied the carriers' request for anti-trust immunity on flights operating between the U.S. and Australia and New Zealand that would allow the carriers to share revenue and marketing expenses on those routes.
"We're hopeful that the Trump administration will give the Qantas J.V. application a second and more capable look," said Steve Johnson, executive vice president of corporate affairs.
