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Tuesday, January 28, 2014

American Airlines profit beats estimates; shares rise, (NASDAQ: AAL)

American Airlines Group Inc, the world's biggest carrier following a merger with US Airways last year, reported better-than-expected adjusted profit and revenue as fares climbed and fuel costs fell, sending its shares up more than 4 percent.The carrier, the result of a union of American and US Airways on Dec. 9, said demand trends were strong, and it expected revenue per available seat mile - a key measure of profitability - to grow 2 to 4 percent in the current first quarter."This is a company that has potential to deliver stronger financial performance, as they work on implementing a new reservation system, as they work on all the many complicated tasks associated with a merger," said Henry Harteveldt, a San Francisco-based travel industry analyst with Hudson Crossing LLC.American said it planned to improve on the fourth quarter results in 2014 as it combines operations. Customers can book flights on both airlines, for instance, and loyalty program members can earn miles when traveling on either network. The carrier recently selected a new reservations system.

Anglo American plc (Anglo American) is a mining company. Shares of AAL traded higher by 4.87% or $1.4701/share to $31.65. In the past year, the shares have traded as low as $12.70 and as high as $31.46. On average, 13206600 shares of AAL exchange hands on a given day and today's volume is recorded at 18123416.