American staged an extraordinary comeback by shrinking its costs in bankruptcy, then greatly expanded its network by merging with U.S. Airways. That landmark deal that created the world’s largest carrier. American’s profits are still waxing: In the first quarter of 2016, operating income rose 9.8%, aided by an almost 30% drop in fuel costs. Still, the tailwinds that propelled American to record earnings are beginning to wane. Americans are still flying in record numbers. The rub is that while airlines, newly flush with cash, are offering a lot more seats, pressuring prices. Many of those new seats are taking flight American’s best markets. In late 2014, a longstanding ban that prevented Southwest from flying most long-haul routes from Dallas’ Love Field was lifted. Since then, Southwest has been offering bargain fares in American’s home market, forcing American to follow suit. The depression in Brazil and chaos in Venezuela are hitting its big Latin American business. In the first quarter, American’s revenues slipped 4% from the same period in 2015, and its revenue for each seat flown fell 7.5%. Times are still good for American, but a new era of profitability is far from certain.
News about American Airlines Group
Rain, coastal flooding, and snow. And it's only October.
Stranded on a flight? Get comfortable. You may be at the airport for quite a while.
Carriers also wouldn't be able to involuntarily remove boarded passengers.
You should pad your budget for your next vacation.
If Congress limits what carriers can charge for the adjustments.
Videos about American Airlines Group
The airplane bathrooms stopped working.
The airline didn’t divert a plane for a medical emergency.
Doug Parker says that the company has transformed, but the culture is still evolving.
The stake is worth at least $808 million.
Beginning August 1st