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American Airlines Group Inc.'s profit and revenue fell amid continued overcapacity, which has plagued other U.S. airlines, as it continued to spend to integrate US Airways Group into the company.

American has been busy integrating its operations since the late 2013 merger of American Airlines and US Airways. Earlier in October, the airline brought US Airways pilots onto the American IT platform.

American said it booked $294 million in net special charges during the third quarter, mostly on merger integration expenses relating to rebranding of aircraft, airport facilities and uniforms, information technology, alignment of labor-union contracts and fleet restructuring.

Excluding those efforts and other special items, profit beat Wall Street's views. American Airlines shares rose 1.2% to $41.10, and several other airline stocks rose premarket as well.

American's unit revenue—the amount the company takes in for each passenger flown a mile—fell 3.3% in the quarter that ended in September. The company predicted a 2% to 3% year-over-year drop.

American, the top U.S. airline by traffic, and other carriers are struggling with weak unit revenues, caused by too many flights and seats being offered than demand warrants. Still, their bottom lines have been cushioned by lower fuel prices.

Delta Air Lines Inc., the nation's No. 2 carrier, reported last week that revenue fell but said that it expects passenger revenue per available seat mile to turn positive early next year. United Continental Holdings Inc., the No. 3 carrier, also reporting revenue declines.

American in the latest period posted a profit of $737 million, or $1.40 a share, compared with $1.69 billion, or $2.49 a share, in the year-ago period. Excluding special items, such as the merger-related expenses, the company said it earned $1.76 a share, topping estimates from analysts polled by Thomson Reuters, who expected $1.69. Excluding items as well as a noncash income tax provision, the company said it earned $2.80 a share.

Revenue slipped 1% to $10.59 billion. Analysts anticipated $10.54 billion.

Capacity rose 1.2% during the quarter.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

October 20, 2016 08:35 ET (12:35 GMT)

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