Copyright Photo: American Airlines – PSA Airbus A321-231 N582UW (msn 6175) (1977 PSA heritage livery) LAX (Michael B. Ing). Image: 962421.
American Airlines is elevating the summer travel experience with offerings that will deliver a consistent and connected inflight experience for all customers this travel season.
When customers board an American flight this summer, they can expect to see new offerings, including a selection of new inflight meals and snacks every foodie will enjoy, Wi-Fi connectivity updates for passengers looking to stay connected, and new entertainment options to stream while in flight.
With chef-curated menu options in premium cabins and choices for the indulgent or health-conscious traveler in Main Cabin, there is something for everyone to enjoy on American flights this summer:
Buy on Board gets a summer shake up: To give American’s Buy on Board program a summer refresh, a Fruit and Cheese Plate and Breakfast Bag begins flying in the Main Cabin this month. The Fruit and Cheese Plate features cheese, grapes and chocolate for a perfectly balanced taste experience while the Breakfast Bag has a healthy and delicious combination of yogurt, granola and a fig bar. The new items are available for purchase on flights (1,300 miles or more) that depart between 9:46 a.m. and 9 p.m. and between 5 and 9:45 a.m., respectively.
American is connecting customers to high-speed Wi-Fi on more aircraft than any other carrier and delivering innovative, exclusive and diverse content directly to your personal device. Customers can also download the American Airlines app for free before they fly to see what’s playing on their flight. Enhancements for the summer months include:
The American Airlines mobile app helps customers conveniently stay connected and get information about their trip, connect with a representative via the chat, track bags or confirm connecting gates — and more.
On American, series and movie offerings are free and available to stream from the inflight entertainment platform straight to any personal devices. With something for everyone, our platform offers a convenient way for every customer to create an inflight experience of their own. With new options, like the new Apple TV+ Original Film Ghosted that customers can watch exclusively inflight starting in July, coming each month to our platform, customers will always find something to watch, read or learn while inflight.
To celebrate Pride Month, American offers an entertainment channel featuring top LGBTQ+ talent in the entertainment industry. Customers can choose from a list of curated movies and series.
This summer, American is bringing new content to the American Black Film Festival channel. The inflight entertainment channel elevates the unique voices and power stories of the Black community to offer a deeper understanding of the Black experience.
As part of our partnership with Apple TV+, we’re offering new subscribers 2 free months to continue watching Apple Originals they’ve discovered in flight after they’ve landed, and provide even more value to our customers.
Those looking to further upgrade their summer travel experience can sign up to become a member of the American Airlines AAdvantage® program and earn loyalty points and miles from their trip, save costs by redeeming miles on flights, hotels, seat upgrades, and access to the Admirals Club lounge.
From OAG:
OAG surveyed 2,000 North American travelers in April 2023 to analyze what factors affect traveler loyalty and booking decisions. The results reveal some interesting generational differences.
Preferred Airlines
American Airlines (28%), Delta Air Lines (24%), United Airlines (17%), and Southwest Airlines (13%) are the most preferred brands of all travelers surveyed by OAG.
Loyalty
Millennials are most likely to change their airline loyalty: 47% have done so in the past year, compared to 37% of Gen Z and 23% of Gen X. Only 15% of Baby Boomers have changed their preferred airline in the last year.
Which factors affect loyalty and sway booking decisions?
Cost
60% of all the travelers asked say that cost is the primary driver of airline preference. From most to least-likely to change airline preference to find flights that suit the budget are:
Gen Z (77%), Gen X (69%), Millennials (59%), Baby Boomers (47%).
On-Time Performance
On-Time Performance (OTP) is the number one reason to remain loyal to an airline for 36% of all travelers. It is the number one reason Baby Boomers (25%) have remained brand loyal, tied with status and frequent-flier programs.
Delays and cancellations
Significant delays or cancellations have caused 37% of travelers to change airline loyalty in the past year. Millennials are most likely to see this as a deal-breaker, with 42% switching loyalty. They’re followed by Gen Z (38%), Baby Boomers (32%) amd Gen X (31%).
Other takeaways:
Read the full report for many more insights into traveler preferences in 2023.
Methodology:
OAG surveyed travelers who have flown in the past year and users of OAG’s flight tracking app, Flightview by OAG.
Timing: April 2023
Respondents: 1,718
Geographies: NAM: United States, Canada, Mexico
American Airlines’ pilot union APA-ALPA Merger Exploratory Committee rejected efforts to merge with the Air Line Pilots Association (ALPA).
The Allied Pilots Association (APA) board fell short of the two-thirds vote necessary to commence merger talks with ALPA, the world’s largest pilots’ union.
APA issued this report to its members in an open letter:
DCA Pilots,
The APA-ALPA Merger Exploratory Committee presented their findings this past Thursday and Friday. There was a significant amount of effort made to bring a comprehensive report to the Board. All 2,441 pages are available here. We wanted to explain why the motion, which required a 2/3rds vote (14 Members) to approve and continue the process, was voted down on a ten / ten split BOD vote.
We will only be able to speak to what your DCA reps perceptions were, and we can further say that as many are aware, various people can be presented with all kinds of information and come to very different conclusions. While there are pros and cons to pursuing a merger with ALPA, many of which the committee outlined in the various areas examined all of which we carefully considered. We found that there are several overwhelming cons that made a “No” vote, at this time, for further merger exploration, our final decision.
Your Right of Self Determination
First and foremost, the autonomy to chart our own path, forge our own direction, and represent our membership on ONLY the issues deemed important to our members and in the manner we determine to be best, is far too valuable to give up. That autonomy would be lost at ALPA, as the larger and overarching power structure of the ALPA Board of Directors would always retain final say on the actions of the individual airline MECs. What is best for ALPA, and the 39 other airlines it represents, would likely take precedence over what might be best for an individual airline’s pilots. We have already experienced situations in which APA and ALPA national have taken conflicting positions on issues relating to our industry and our profession. While that does not occur frequently, if we are being candid, there would inevitably be a loss of some level of control and self-determination once you become part of the ALPA structure. Certainly some will belabor this point, but it is a fact that, based on the briefing given and the realities of how ALPA is structured, there is less control of an individual pilot group’s own destiny once you join ALPA. That is one of the reasons APA was founded in the first instance and something that we value too much to agree to give up.
Your Benefits
The Merger Exploration Committee concluded that our APA Benefits were far superior to ALPAs. While many statements were made about what “might happen,” or “could happen,” or “would be expected to happen,” with our benefit plans in a proposed merger, this was another valuable aspect of APA we were not comfortable with putting at risk for any possible negative change at this time.
Your Money
Additionally, the Committee also informed the Board that, under ALPA’s current dues structure, we would each be paying 1.85% dues, compared to the 1% we pay in non-Section 6 times and the 1.5% we pay during Section 6. In the last 23 years, APA pilots have paid an average of 1.32% dues. Using very rough math, with a constant 1.85% dues rate, in 2023 we would generate over $60.8M in revenue for ALPA, yet an AA MEC would only get back 38.5% of those funds, approximately $21.8M, according to the Committee. While it was reported that some of our APA Staff might be paid by ALPA A&S Funds in the event of a merger, that still would leave a shortfall in funding of over $7M from our current operating budget.
Effectively, the larger airlines in ALPA are subsidizing all of the smaller ones. APA, if it merged with ALPA, would take over as one of the largest subsidizers. Another con is that local domiciles in ALPA are unable to give union time off for domicile volunteers doing important union work. This is a matter of policy, which APA would be subjected to and possibly, unable to change due to ALPA policy, if it were part of ALPA at that time. There are certainly other policies inconsistent with the way we are currently doing business, which goes back to the primary reason why we felt a “no” vote was necessary—preserving APA’s autonomy. Finally, further exploration of a merger would cost north of $200,000.
Merger Ahead?
One of the more interesting briefing points we received from the committee, which was recorded in open session, was the following;
The Delta MEC and the Endeavor MEC have an Arrangement. It has been Initiated by the DAL MEC and mutually agreed on between the respective MECs.
• “WHEREAS the best way to ensure proper staffing for Delta’s regional flying is to bring those aircraft, and pilots, to the mainline”
• “WHEREAS the adage “a rising tide lifts all boats” certainly applies in the relationship between our two pilot groups interests, and goals…”
• The resolutions authorizing pursuit of the arrangement expressly provide that the working group established by the resolutions “will neither consider nor recommend any action that would result in any Endeavor pilot being placed on the seniority list ahead of Delta pilots …”
So, in the opinion of this writer, it certainly appears that based on the report given that the Endeavor Pilots have agreed to what some arguably could call a staple. We should exercise extreme caution in the timing of any efforts to pursue any ALPA or other union merger until we see the results of the Delta/Endeavor MEC negotiations and the final seniority list for them – particularly with the possibility that AA could attempt to merge the wholly owned with mainline.
In Closing
The bottom line is, we found the report useful in many ways, in that it showed us some important steps we might take to improve APA. Some structural, process, and governing document improvements are most definitely in order to improve our efficiency and effectiveness, and the Board has already taken steps to commit to consider those changes in upcoming months. The National Officers and Board together are currently forming a Governance Reform Caucus to address these shortfalls, and we encourage those with great ideas to submit them via Soundoff so we can improve the effectiveness of our organization…so that ultimately we will be able to serve YOU, the membership, in the most optimum, efficient, and effective way.
The grass may look greener on the other side, but the truth is that every organization has challenges. APA has its challenges, but ALPA is no different. Those members of the Board of Directors who voted against pursuing a merger found that the costs of possibly merging with ALPA simply outweigh the benefits in this equation, and we did not believe that becoming part of ALPA would be the panacea that some make it out to be.
However, if you want to make a difference, we encourage you to get involved as a volunteer with APA and you can help make our organization a better place. We need your help, and if you feel passionately about the things we can do and change to make our organization better, then we encourage you to step up and volunteer.
Thank you for your patience as we continue to wait for the Negotiating Committee’s language and as we continue to work to make this a better place for all pilots.
In Unity,
Joe and Tim
American Airlines Group Inc. is presenting information relating to its financial and operational outlook at the Bernstein Strategic Decisions Conference. As previously announced, this presentation will be webcast, with the link available at the Company’s website at www.aa.com under “Investor Relations.”
Additionally, the Company is providing investors an update regarding its financial and operational guidance for the second quarter of 2023. The Company now expects total revenue per available seat mile to be down approximately 1.0% to 3.0% versus the second quarter of 2022. This improvement in unit revenue versus prior guidance is driven by continued strength in the demand environment. The Company now expects to pay an average of between $2.55 to $2.65 per gallon of jet fuel in the second quarter.
Based on these updated assumptions, the Company now expects its second quarter adjusted operating margin4 to be approximately 12.5% to 14.5% and adjusted earnings per diluted share5 to be between approximately $1.45 to $1.65. The Company does not intend to provide a further update to its financial and operational guidance until the release of its second quarter 2023 results.
Certain components of the guidance provided exclude fuel and net special items. The updated guidance provided herein is presented to provide comparability with prior guidance. The Company is unable to fully reconcile such forward-looking guidance to the corresponding GAAP measure because the full nature and amount of net special items cannot be determined at this time.
Officials from Miami International Airport, the British Virgin Islands Tourist Board, and American Airlines hosted a ribbon-cutting ceremony on Thursday, June 1, to celebrate the launch of American’s daily nonstop Miami-Tortola route.
With the departure of American Airlines flight 3989, MIA became the only U.S. airport to offer nonstop service to the British Virgin Islands for the first time in four decades. The three-hour flight, which eliminates the need for connecting flights, will operate through the summer and then resume in November.
Tortola also became the 43rd nonstop Caribbean route at MIA, the leading U.S. airport for flights to Latin America and the Caribbean. MIA enters the busy summer travel season with year-to-date passenger traffic up nearly three percent over its record-breaking year in 2022 when the airport served 50.7 million travelers.
American Airlines and JetBlue Airways will now be forced to dismantle its Northeast Alliance trial following a final decision by a judge in favor of the Department of Justice (DOJ) against the alliance. The DOJ won their lawsuit to stop the Northeast Allaince.
The United States Department of Justice issued this statement:
Attorney General Merrick B. Garland and Assistant Attorney General Jonathan Kanter for the Justice Department’s Antitrust Division issued the following statements today regarding the U.S. District Court for the District of Massachusetts’s ruling in favor of the Justice Department and the Attorneys General of six states and the District of Columbia in their civil antitrust lawsuit to stop the Northeast Alliance between American Airlines and JetBlue:
“Today’s decision is a win for Americans who rely on competition between airlines to travel affordably,” said Attorney General Merrick B. Garland. “The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry.”
“We are pleased with the court’s decision. The outcome of this litigation recognizes the value of competition in the airline industry,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We are grateful to our state law enforcement partners and the dedicated and talented Antitrust Division staff that investigated and tried this important case.”
The court’s decision follows a multi-week trial that began in September 2022. The Justice Department sued to stop American Airlines and JetBlue from continuing the Northeast Alliance. The Northeast Alliance is a series of agreements between American Airlines and JetBlue through which the two airlines have consolidated their operations in Boston and New York City. The court ruled that JetBlue and American Airlines’ decision to stop competing in Boston and New York, where they are major players, violated Section 1 of the Sherman Act because it increased fares and reduced choice for American travelers in many domestic markets for scheduled air passenger service.
American Airlines is gearing up to make this fall memorable with more nonstop flights for some of the most popular college football games. In addition, American will add more seats and frequencies for fans’ favorite games throughout the fall season.
Starting in September, American will launch new daily service for fans going to State College, Pennsylvania (SCE), from Chicago (ORD). On select dates between September and November, American will operate an extra frequency between ORD and SCE for home games, offering customers more flight options and convenient one-stop access to American’s global network.
American will also operate more direct service to South Bend, Indiana (SBN), from New York City’s LaGuardia Airport (LGA) and Washington D.C.’s Reagan National Airport (DCA) on select dates in September, October and November.
As the official airline and airline rewards program sponsor of the University of Texas Athletics, the partnership is giving fans more ways to make their flights and home games special. AAdvantage® members can take part in special promotions for Longhorns fans, offering a chance to win exclusive experiences and access the American Airlines AAdvantage Patio during football home games at the Darrell K Royal-Texas Memorial Stadium. The AAdvantage program is free to join and gives members access to some of the best that American offers.
Fans traveling on any of American’s domestic narrowbody aircraft have free access to live sports and news networks 24/7. Fans can access inflight entertainment on their personal devices.
| Game day | Cities | Service |
|---|---|---|
| Sep. 9 | Austin, Texas (AUS) to Birmingham, Alabama (BHM) | AUS–BHM operating on Sep. 8 BHM–AUS operating on Sep. 10 |
| Sep. 9 | College Station, Texas (CLL) to Miami (MIA) | CLL–MIA operating on Sep. 8 MIA–CLL operating on Sep. 10 |
| Sep. 16 | Nashville, Tennessee (BNA) to Gainesville, Florida (GNV) | BNA–GNV operating on Sep. 15 GNV–BNA operating on Sep. 17 |
| Sep. 23 | Cedar Rapids, Iowa (CID) to State College, Pennsylvania (SCE) | CID–SCE operating on Sep. 22 SCE–CID operating on Sep. 24 |
| Sep. 30 | Denver (DEN) to Los Angeles (LAX) | More seats available |
| Oct. 7 | BHM to CLL | BHM–CLL operating on Oct. 6 CLL–BHM operating on Oct. 8 |
| Oct. 14 | Dallas-Fort Worth (DFW) to Knoxville, Tennessee (TYS) | More seats available |
| Oct. 21 | Columbus, Ohio (CMH) to Philadelphia (PHL) | More seats available |
| Oct. 28 | CMH to Madison, Wisconsin (MSN) | CMH–MSN operating on Oct. 27 MSN–CMH operating on Oct. 29 |
| Nov. 4 | South Bend Indiana (SBN) to Greensville/Spartanburg, South Carolina (GSP) | SBN–GSP operating on Nov. 3 GSP–SBN operating on Nov. 5 |
| Nov. 11 | Detroit (DTW) to SCE | DTW–SCE operating on Nov. 10 SCE–DTW operating on Nov. 12 |
| Nov. 11 | Los Angeles (LAX) to Eugene, Oregon (EUG) | LAX–EUG operating on Nov. 10 EUG–LAX operating on Nov. 12 |
| Nov. 18 | AUS to Des Moines, Iowa (DSM) | AUS–DSM operating on Nov. 17 DSM–AUS operating on Nov. 19 |
| Nov. 25 | Charlotte (CLT) and DFW to BHM | More seats available |
Top Copyright Photo: American Airlines Boeing 737-8 MAX 8 N350RV (msn 44462) SNA (Michael B. Ing). Image: 960388.
American Airlines aircraft photo gallery (Boeing):
The APA Negotiating Committee and its American Airlines management counterparts have reached an agreement in principle (AIP) on a new collective bargaining agreement.
As required by the APA Policy Manual Section 9.06, we will move forward with completing contractual language for all sections and related letters and for the implementation schedule. Once that requirement is fulfilled, the Negotiating Committee will present the AIP to the APA Board of Directors for consideration as a proposed tentative agreement (TA) at least seven days prior to any meeting convened to consider the TA.
Details of the AIP will be released by the Negotiating Committee in the days ahead.
Top Copyright Photo: American Airlines Boeing 787-8 Dreamliner N883BM (msn 66003) PAE (Nick Dean). Image: 960559.
American Airlines aircraft photo gallery (Boeing):
Summer is right around the corner and American and its more than 130,000 team members are ready to care for customers over the busy travel season. Following industry-leading reliability over the winter holidays, American has carried that operational momentum into 2023 — currently leading the industry in on-time departures. The airline is doubling down on operational reliability and has invested in new technology to get customers on their way faster. Between May 25 and August 14, American expects more than 52 million customers.
May 25 to August 14, 2023
American is sized for the resources it has and the operating conditions it expects to face. Over the last two years, the airline has continued to grow its team — a team geared up for the busy travel season.
American Airlines and Dallas Fort Worth International Airport (DFW) have signed a new 10-year Use and Lease Agreement, which includes $4.8 billion in pre-approved capital investments, including the construction of Terminal F, the renovation of Terminal C, construction of gate expansions at Terminal A and Terminal C, and other significant modernization projects.
Fort Worth Mayor Mattie Parker, Dallas Mayor Eric L. Johnson, American Airlines CEO Robert Isom and DFW Airport CEO Sean Donohue gathered at DFW today for a special event to announce the Use and Lease Agreement, marking a new era of growth and innovation for the world’s second-busiest airport.
DFW CEO Sean Donohue, Dallas Mayor Eric L. Johnson, Fort Worth Mayor Mattie Parker and American Airlines CEO Robert Isom pictured (L-R) at the special event at DFW.
American Airlines team members, local officials and airport employees gathered at DFW for the special event.
“American is proud to call North Texas home, and DFW is our largest hub and a central gateway to our extensive international and domestic network,” said American’s CEO Robert Isom. “American has led the growth that has propelled DFW to become the second busiest airport in the world and we are thrilled to finalize a new lease agreement and capital plan that sets the stage for American, DFW and the North Texas region to continue to grow for years to come. We value our longstanding relationship with DFW and are grateful to Mayor Parker, Mayor Johnson, the DFW Airport Board and Sean for their continued partnership.”
“We are very proud that Fort Worth-based American Airlines has signed this important agreement to cement DFW’s status as American’s main hub and help us continue to meet the incredible demand we are experiencing in North Texas,” said Mayor Parker. “Our region will become the nation’s third largest metro region within the next 10 years, and it’s no surprise that we have the second busiest airport in the world. Today’s agreement ensures DFW Airport is ready for the future and to continue serving as Fort Worth’s gateway to the world.”
“As a growing, international city, Dallas takes great pride in its partnerships with Dallas Fort Worth International Airport and American Airlines,” said Mayor Johnson. “DFW Airport connects our community to the world and fuels economic growth throughout our region and state. We all recognize that North Texas is the place to be. Signing the new Use and Lease Agreement is one step to ensure our region remains well-positioned to thrive in the future.”
“The Use and Lease Agreement not only creates a predictable and equitable business model for DFW Airport, but it also underscores the commitment of the airport and our airline partners to provide passengers with the best possible travel experience,” said DFW Airport CEO Sean Donohue. “Our partnership with American Airlines, our largest airline, is stronger than ever. With the support of Robert Isom and the American team, we are making investments that set the stage for the airport of the future — one that prioritizes innovation, customer experience and sustainability.”
The Use and Lease Agreement is the main governing document between the airlines and the Airport and establishes the Airport’s business model. The agreement outlines major capital projects over the next 10 years. The most significant projects include:
Conceptual rendering of Terminal C gate expansion.
Conceptual rendering of Terminal F.
Snapshot of American Airlines at DFW.
The terminal expansions will deliver 24 additional gates to prepare American and DFW for long-term growth. At the completion of construction, American will add new gates in the Terminal A and Terminal C piers to its operating portfolio. The projects will also allow American to expand operations in existing terminals to maximize its operational capability and enhance the experience for connecting customers. The new agreement will allow American and DFW to work together on additional capital projects throughout the term of the lease.
The new Use and Lease Agreement replaces the 2010 agreement and maintains many of the same business arrangements as the prior version, which will provide certainty and cost predictability to support the continued growth of American and DFW.
Approximately 85% of the passenger traffic at DFW is customers of American Airlines, with about two-thirds of American’s customers connecting through DFW to access the airline’s global network. American’s creation of a “connection factory” at its largest hub has provided significant benefits to the North Texas community, providing access to more than 240 nonstop destinations out of DFW operated by American. DFW is also home to several of American’s alliance partners, creating a seamless travel experience for customers connecting between partner airlines at DFW.
The new Use and Lease Agreement also reinforces American’s commitment to North Texas, which is home to nearly 35,000 of the airline’s team members at the airport and on American’s 300-acre Robert L. Crandall Campus in Fort Worth. The campus is home to American’s headquarters and is designed to support its global operations and team members. American recently opened its 600-room Skyview 6 Hospitality Complex, the newest facility on campus that hosts team members visiting for training.
American is not only a massive economic engine to the Dallas-Fort Worth region, but throughout the state of Texas. American’s total economic impact to Texas is more than $42.7 billion annually, and the airline employs more than 36,000 team members across the state. Additionally, American’s operation in Texas contributes to a total employment impact of more than 365,000 jobs in the state.
In April, American Airlines partnered with the USO and other organizations to take 19 military service members and their families on a trip to Walt Disney World as part of the Salute to the Troops event. These families — all impacted by cancer — had the chance to escape their worries back home and make unforgettable memories together.
American chartered an Airbus A319 aircraft from Washington, D.C. (DCA) to Orlando, Florida (MCO), and planned a special inflight experience and hero’s welcome for the participants. The airline participates in events like Salute to the Troops year-round that have benefited hundreds of wounded and ill military service members and their families.
This year, the event took on special meaning for one of our team members when an American Airlines pilot who is also an Army Reserve Officer had the opportunity to attend with his family. First Officer Michael Huber’s wife is battling cancer and the trip provided much-needed fun and relaxation for the Huber family.
In honor of Military Appreciation Month in May, we salute the country’s military service members — past and present — including the 8,500 American Airlines team members who are veterans or currently serving in the National Guard or Reserves. The airline has a long history of honoring our nation’s heroes, and that work continues through programs and partnerships led by our Military and Veterans Initiatives program.
Video:
Top Copyright Photo: American Airlines Airbus A319-112 N723UW (msn 1109) MIA (Bruce Drum). Image: 105925.
American Airlines aircraft photo gallery (Airbus):
American Airlines pilots are in negotiations with the company on a new contract.
Meanwhile the majority of the Allied Pilot Association have given the union permission to call for a strike vote if negotiations breakdown.
The union issued this statement:
The Allied Pilots Association, certified collective bargaining agent for the 15,000 pilots of American Airlines, announced that its membership has voted overwhelmingly in favor of authorizing a strike.
“The summer travel season is almost here, and we’re all wondering whether this will be another summer of uncertainty for American Airlines,” said Capt. Ed Sicher, APA President. “Fortunately, there is an alternative. By embracing the win-win scheduling and work rule improvements APA has presented at the bargaining table, management can take steps to improve the airline’s operational reliability and efficiency.”
Capt. Sicher noted that APA has provided airline management with detailed data illustrating how the union’s proposals will drive improved reliability.
Strike authorization voting began on April 1 and ended at midnight Central on April 30. With more than 96 percent of the APA membership participating, more than 99 percent voted in favor of authorizing a strike.
“The APA membership has spoken. We will strike if necessary to secure the industry-leading contract that our pilots have earned and deserve – a contract that will position American Airlines for success,” Capt. Sicher said. “With more than 99 percent of participating pilots voting in favor of authorizing a strike, our pilots’ resolve is unmistakable. We will not be deterred from our goal of an industry-leading contract.”
In a demonstration of their resolve, APA members will be conducting informational picketing today from 11 a.m. to 1 p.m. local time at all 10 of the airline’s major hubs: Boston (BOS), Charlotte (CLT), Chicago (ORD), Dallas/Fort Worth (DFW), Los Angeles (LAX), Miami (MIA), New York (LGA), Philadelphia (PHL), Phoenix (PHX), and Washington, D.C. (DCA).
“The strike authorization vote is one of several steps APA has taken to prepare for any eventuality and use all legal avenues available to us for contract improvement and resolution,” he said. “The best outcome is for APA and management to agree on an industry-leading contract – achieved through good-faith bargaining – benefiting our pilots, American Airlines, and the passengers we serve.”
Top Copyright Photo: American Airlines Airbus A321-231 WL N902AA (msn 7519) MIA (Bruce Drum). Image: 105926.
American Airlines aircraft photo gallery (Airbus):
American Airlines Group Inc. today reported its first-quarter 2023 financial results, including:
“The American Airlines team ran a great operation and delivered on our financial guidance for the quarter, resulting in a first-quarter profit for the first time in four years,” said American’s CEO Robert Isom. “Looking ahead to the remainder of 2023, we remain focused on reliability, profitability, strengthening the balance sheet, and creating even more value for our shareholders, team members, customers and the communities we serve.”
The American Airlines team delivered a strong operational performance during the first quarter. American and its regional partners operated more than 476,000 flights in the first quarter, with an average load factor of 80.0%.
American delivered its best-ever first quarter completion factor and controllable completion factor, resulting in 13 mainline, 11 regional, and five combined mainline and regional zero-cancellation days, a significant improvement over the same period last year. American also outperformed the industry in on-time departures for the quarter, ranking first among the nine largest U.S. carriers.
American produced revenues of $12.2 billion in the quarter, a record for the first quarter and an increase of 37% versus the first quarter of 2022 on 9.2% more capacity. The strong revenue performance was driven by the continued strength of the demand environment. The company produced an operating margin of 3.6% on a GAAP basis and 3.7% excluding the impact of net special items. American produced net income of $10 million in the first quarter on a GAAP basis.
Demand for American’s product remains strong. Domestic and short-haul international revenue continue to perform well, and the airline has seen noticeable strength in long-haul international demand and yield performance this year.
American will make a profit-sharing payment to its team members for the first time in three years. The company has accrued approximately $211 million to its profit-sharing pool, which for the purposes of 2022 was measured as the 12-month period ended March 31, 2023, and will be paid to team members in May.
American generated record operating and free cash flow of $3.3 billion2 and $3.0 billion2, respectively, in the first quarter. The company reduced total debt4 by more than $850 million in the quarter. Strengthening the balance sheet continues to be a top priority, and the company is approximately 60% of the way to its goal of reducing total debt by $15 billion by the end of 2025. As of March 31, 2023, American had reduced its total debt by more than $9 billion from peak levels in the second quarter of 2021. The company ended the quarter with approximately $14.4 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.
Based on demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2023 adjusted earnings per diluted share3 to be between $1.20 and $1.40. American continues to expect its full-year 2023 adjusted earnings per diluted share3 to be between $2.50 and $3.50. The company’s forecasts include the estimated impact of anticipated new labor agreements.
For additional financial forecasting detail, please refer to the company’s investor update, furnished with this press release with the SEC on Form 8-K. This filing will also be available at aa.com/investorrelations.
The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CT today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available on the website through May 27.
See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of free cash flow and all GAAP to non-GAAP financial information.
American Airlines flight AA1958 from Columbus, OH (CMH) to the Phoenix (PHX) on Sunday, April 23, 2023 with Boeing 737-800 N972NN departed as usual at 8:22 am.
Shortly after takeoff the airliner reportedly collided with a flock of geese causing the right engine to catch on fire. Flames and smoke were noted coming from the engine.
The aircvraft landed safely 25 minutes after takeoff.
American Airlines ground employee died Thursday at AUS in a tragic event involving a loading bridge and a ground service vehicle.
More from CNN:
https://www.cnn.com/2023/04/21/us/austin-texas-american-airlines-employee-dies/index.html
American Airlines, Delta Air Lines and United Airlines have indicated they will cut the number of flights operating into and out of the New York City area this summer due to a shortage of air traffic controllers.
JetBlue Airways also indicated it will also cut back at its New York City home.
Airlines will need to upgauge the type of aircraft flying into the region to minimize the shortage of seats.
The FAA estimates it only has around 55% of the air traffic controllers it needs for the area. Training takes time.
The FAA issued this report:
The FAA anticipates a busy summer air travel season to and from New York City, some of the country’s most complex and congested airspace. To ensure safe and smooth operations, the agency’s Air Traffic Organization held a productive meeting today with airlines, general aviation representatives and associations and the National Air Traffic Controllers Association to discuss ways to minimize impacts to passengers.
Participants discussed traffic flow management strategies, system resiliency and facility staffing. Operators requested collaboration and communication with the FAA early and often to plan for circumstances that could result in delays, including weather events, space launches and military operations. They discussed how closer collaboration and frequent air traffic updates would help them more effectively schedule crews.
They also requested increased coordination between facilities to take advantage of alternate routes, such as deep water routes.
The FAA discussed efforts to reduce the air traffic controller training backlog at many FAA air traffic facilities, but pointed out that staffing levels at the New York Terminal Radar Approach Control (N90) continue to be below targets. The agency stressed that it will be more flexible to safely accommodate the projected increase in demand this summer. The agency will be more proactive regarding traffic management initiatives.
The agency is reviewing the feedback from participants and will identify actions to improve operations this summer in the New York area.
The summit was similar to the one hosted in Florida last year that resulted in measures to improve efficiency in another high-demand area.
Background
The agency has already taken several steps in anticipation of the increased demand. It recently announced that it will give airlines flexibility on slot usage requirements. In turn, the FAA expects airlines to take actions minimizing impacts on passengers, including operating larger aircraft to transport more passengers and making sure passengers are fully informed about any possible disruptions.
