Revenue during the quarter went up marginally by 1.65 percent to $9,789 million from $9,630 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 70.89 percent. Total expenses were 92.16 percent of quarterly revenues, up from 88.91 percent for the same period last year. That has resulted in a contraction of 326 basis points in operating margin to 7.84 percent.

Operating income for the quarter was $767 million, compared with $1,068 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1,028 million compared to $1,518 million in the prior year period. At the same time, adjusted operating margin contracted 526 basis points in the quarter to 10.50 percent from 15.76 percent in the last year period.

"The American Airlines team continued to produce outstanding results in 2016, and outsiders are taking notice. Air Transport World named American as its 2017 Airline of the Year, citing our team’s integration work, operational and customer service improvements, and the significant investments we are making in our product. This recognition is entirely due to the great work of our 120,000 team members," said Doug Parker, chairman and chief executive officer.

Debt moves up 
American Airlines Group Inc. has witnessed an increase in total debt over the last one year. It stood at $24,344 million as on Dec. 31, 2016, up 18.40 percent or $3,783 million from $20,561 million on Dec. 31, 2015. Total debt was 47.48 percent of total assets as on Dec. 31, 2016, compared with 42.47 percent on Dec. 31, 2015. Debt to equity ratio was at 6.43 as on Dec. 31, 2016, up from 3.65 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.02 for the quarter from 4.66 for the same period last year.