On March 16th outgoing American Airlines CEO Doug Parker shared with employees at an internal meeting, a recording of which was reviewed by View From The Wing, that “Demand is enormous right now for air travel. We had last week the 3 highest revenue booking days in our history.”
Parker pointed out that this was true despite:
- American flying fewer seats than in 2019 “so less inventory to purchase”
- Most people not flying international, and domestic is lower revenue
- Disproportionately high leisure travel, business travel is still depressed
He caveated the conclusions that can be drawn by saying that “that’s not 3 days of revenue, these are people buying tickets for the future, so maybe they waited and may it’s kind of pent up and those were big days” – people could have waited until the Omicron surge declined to buy travel – but this is still a remarkable statistic.
Just before the pandemic American’s AA.com website set records for daily revenue averaging over $60 million in ticket sales per day. With more leisure than business travelers American’s website, and those of online travel agencies, are seeing extremely high levels of sales.
Good. Maybe all those undervalued states that I bought will recover.
*shares
I purchased a nice stash of AAL end of March 2020, right under $10 a share. Hoping to 3X by EOY. people WANT to travel…. Once/Soon as the US Drops mask mandated and elimates testing on Arrival back to the US. Hoping to see additional revenue. we shall see
Placed limit buy order for $JETS. If I lose money, Gary, I’m going to take a dump on your porch.
Perhaps people are now purchasing future flights on American Airlines is because, in the near future, American Airlines CEO Doug Parker will no longer be their CEO.
Ken A Badda Bing! LOL
By revenue? Well, this morning I just gave Shell the largest single bit of revenue I have ever spent to fill up my tank, so not particularly surprising that airlines have been able to pass through these costs (and a bit more on the top) as well. A shock to your biggest variable-cost input plus a whole bunch of press about inflation inflation inflation is a great opportunity to see how high you can lift your prices.
Keep in mind before buying AAL stock to do your research! Company in debt by OVER $40 BILLION, not a good out look moving forward.
I’m just shocked at 50k redemption costs one way in cattle coach?
& 300 k one way in business class to Europe and Australia etc
The program is a copy of Delta pretty much in many markets
I got tickets to Australia in Business class for what American wants for a coach
seat on 2 hour flights.Sad .A complete rip off
For a company that invented the FF program they have also destroyed the once brilliant Business loyalty scheme .Try to book anywhere else where possible rather then be fleeced
Did I say ticket prices are sky high and shocking! Only when folks were dying of disease from Corona Virus did they price fairly
American Airlines mileage for flights to Asia are almost no existent and when you do find something its 3 to 5 times the mileage of pre Covid. Booked a Business Class ticket with mileage for June on Singapore Airlines from JFK to Manila via Singapore for 99K. American wants 175K from JFK to Tokyo via DFW! The segment Tokyo to Manila is Malaysian for 60K and takes over 12 hours (stop in KL). Buying mileage for future use is like buying American Airlines stock, buyer beware! Buy high sell low. Loyalty has no value on American. It looks like they are headed the way of Pan Am, Eastern, TWA etc. the debt will overwhelm them.