american airlines

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American Closing 11 Clubs, Restricting Service In Others

by Gary Leff

Mar 18 2020

Due to low passenger volumes and suspended flights, American is closing 11 lounges so far. I expect that number to grow.

There are various state laws that are affecting service in Admirals Clubs. Perhaps the most extreme place you can social distance inside of an airport is in American’s Flagship First Dining. But they’ve had to close it at New York JFK because ‘restaurants’ are required to be closed. Some won’t let you take food with you, others won’t let you eat the food they give you there. And in some places alcohol cannot be served.

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American Airlines Asks Flight Attendants To Take Leave With No Pay

by Gary Leff

Mar 17 2020

American Airlines is telling flight attendants they have “great options” to choose from to voluntarily reduce the airline’s workforce: retirement and no pay but two years of benefits, or leave with no pay but benefits. Pilots are being offered about two-thirds of pay.

Unless there’s some sort of commitment not to furlough employees as part of taking the government bailout package airline CEOs and their lobbyists have been pushing for, I’d expect to see furloughs coming next.

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Insane: American Airlines Is Still Spending Money To Add Seats To Aircraft

by Gary Leff

Mar 15 2020

American Airlines has cut its international schedule by 75% and its domestic schedule by 30%. Load factors are dropping. People aren’t buying tickets. The one thing American Airlines has too much of is seating capacity. And the one thing American Airlines has too little of to make it through this crisis is money. That’s why they’re running to the government for assistance.

And yet they’re continuing their ‘Oasis retrofit’ program where they replace the interiors of domestic aircraft to add seats to planes, making them less comfortable for passengers.

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American Airlines Parking Jets, Down To 3 Long Haul Routes, Cuts Domestic By 30%

by Gary Leff

Mar 15 2020

American Airlines, slow off the dime in its moves to protect its business compared to United and Delta, already began major capacity cuts in response to the administration’s ban on non-U.S. residents entering the country if they’ve been to Schengen Area countries of Europe within the past 14 days.

With the government extending that restriction to the U.K. and Ireland, and with demanding drying up more and more each day, they’ve now taken things a step further. They are reduce international capacity by 75% year-over-year. Ostensibly this will apply March 16 to May 6, but many of these cuts will almost certainly last longer.

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New Data: Are Frequent Flyers Moving Away From American Airlines?

by Gary Leff

Mar 14 2020

Four years ago American shared on an earnings call that 50% of its revenue was coming from once a year flyers who made up 87% of its customers, with more frequent customers representing just 13% of flyers and the other half of revenue.

Now once a year customers are contributing an even greater share of American’s revenue – even as people fly more often.

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American Airlines Is Focused On Long-Term Growth, ‘Not Breaking Out The Distress Playbook’

by Gary Leff

Mar 10 2020

At an investor conference this morning, after first talking about coronavirus, American Airlines CEO Doug Parker pivoted to talk about the airline’s operational performance, and growth plans including from new gates coming online in Charlotte and upgauging regional jets next year at Washington National airport.

American just has a real difference in perspective. Parker said they are “not breaking out the distress playbook..that’s not where we are.” I hope he’s right of course. They talked about the effect of sales on bookings, their cash balance as a cushion, and the possible accelerated retirement of the Boeing 757.

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