American Airlines has announced it will temporarily cut some New York area flights this summer, joining other carriers.
American is reducing the frequency of flights between LaGuardia Airport and Dallas/Fort Worth, Miami, Kansas City and St. Louis and the Newark-Chicago O’Hare route accordin g to Reuters.
This follows the FAA’s decision to temporarily return 10% of slots at New York LaGuardia and John F. Kennedy International Airport, Newark Liberty International Airport and Ronald Reagan Washington National Airport as a result of air traffic controller shortages. The U.S. carriers agreed to the cuts provided they did not backfill the slots.
In other news, according to Reuters, the Allied Pilots Association (APA) is near to reaching a new contract agreement with the company.
Top Copyright Photo: American Airlines Boeing 737-8 MAX 8 N313SB (msn 44469) MIA (Bruce Drum). Image: 105922.
American Airlines aircraft photo gallery (Boeing):
On Tuesday, April 4, 2023, American Airlines Flight Attendants, represented by the Association of Professional Flight Attendants (APFA), will continue systemwide informational picketing events at nine Flight Attendant bases across the United States. The Union has passed proposals on every section of our Contract and invoked the services of the National Mediation Board (NMB) by filing for federal mediation, the next step to reach an agreement, as outlined by Section 6 of the Railway Labor Act.
“Flight Attendants have not received a raise or any cost of living increase in over four years, while the cost of living in our crew bases is skyrocketing,” said Julie Hedrick, National President of the Association of Professional Flight Attendants. “We deserve significant increases in compensation and improvements to how we are scheduled. It is time for management to bring these negotiations to a close.
Where: BOS:Boston/ Logan International Airport, Terminal B West Arrivals, Doors B103-B104. CLT: Charlotte/ Douglas International Airport, NW corner of Wilkinson Blvd/Josh Birmingham Pkwy intersection. DCA: Washington National Airport, Terminal 2, ticketing level, North Terrace. DFW: Dallas/ Ft. Worth International Airport, Terminal A, upper level, door A8. JFK: canceled. LAX: Los Angeles International Airport, between T4 & Tom Bradley terminal, departures level. MIA: Miami International Airport, Terminal D, upper level, Door 1. ORD: Chicago/ O’Hare International Airport, Departures, between T2 and T3 sidewalk. PHL: Philadelphia International Airport, Terminal A West. PHX: Phoenix Sky Harbor International Airport, Terminal 4, NW side, level 2.
Over the past 38 years, American has raised more than $45 million for the Cystic Fibrosis Foundation through the annual Celebrity Ski event.
This year, the airline made a $25,000 donation in honor of Chief Customer Officer Alison Taylor and her commitment to the organization ahead of her upcoming retirement.
CF Foundation awarded American’s former executive Elise Eberwein with its prestigious Jena Award for her service to the foundation and its mission.
American Airlines and its partners raised more than $1.1 million to benefit the Cystic Fibrosis Foundation this month at the Celebrity Ski event in Beaver Creek, Colorado. To date, American has raised more than $45 million for CF Foundation through the annual event.
“For nearly four decades, we’ve gathered on the ski slopes with a group of generous team members, sponsors and supporters of the foundation to rally for the fight against cystic fibrosis,” said American Airlines Chief Communications and Marketing Officer Ron DeFeo. “While the event is filled with skiing and fun, the mission of the Cystic Fibrosis Foundation is incredibly important, and we are proud to do our part in combating this serious disease.”
More than 400 people attended the event this year, including celebrities from the sports and entertainment industries. Attendees skied alongside Olympic athletes and enjoyed performances by John Oates and Warner Music recording artist Teddy Swims.
To commemorate her upcoming retirement and note her long-time dedication to supporting the foundation, American donated $25,000 on behalf of Chief Customer Officer Alison Taylor to assist the organization in its mission to cure CF.
Attendees hit the slopes alongside Olympic athletes.
Celebrity Ski attendees enjoy the slopes of Beaver Creek, Colorado.
Elise Eberwein accepts the CF Foundation’s Jena Award on March 23.
Funds raised from this year’s event will help advance the mission of the Cystic Fibrosis Foundation — the world’s leader in the search for a cure for cystic fibrosis. The Foundation supports a broad range of research initiatives to fight CF, which is a genetic disorder that affects the lungs, pancreas and other organs.
“American Airlines, our longest-standing corporate supporter of nearly 40 years, has advanced our mission for all those living with cystic fibrosis — raising more than $45 million cumulatively,” said Patrick Feeley, Chief Development Officer, Cystic Fibrosis Foundation. “Their generosity has led to more people with CF living longer than at any time in history. Special thanks to this year’s event sponsors — Title Sponsor American Airlines; Co-presenting Citi and MasterCard; Diamond Sponsor T-Mobile for Business; and Platinum Sponsor FedEx. We are immensely grateful for your support.”
On March 23, the CF Foundation presented American’s former executive Elise Eberwein, who retired from the airline last year, with one of the highest honors the foundation awards each year. Elise received the foundation’s Jena Award, which recognizes a volunteer who does not have a direct connection to CF but goes above and beyond to support the mission.
American Airlines hired the first female graduates from the American Airlines Cadet Academy to join the mainline flight deck as first officers at the 2023 Women in Aviation International Conference. In addition to this special milestone, American extended 52 pilot job offers at the conference — the only mainline airline carrier to do so.
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The American Airlines Cadet Academy, which celebrates its five-year anniversary in July, provides a structured platform to eliminate the financial barriers prospective pilots face. The Cadet Academy supports the growth of American’s pilot population while creating greater diversity amongst the future and current pilot ranks — with more than 30% of enrolled cadets being female. The Cadet Academy helps close the gap between dreams and an attainable future in aviation for those who didn’t know it was possible.
This week, your Board of Directors reaffirmed a recent message from President CA Ed Sicher and Vice President CA Chris Torres: Our Patience is Finite; Our Resolve is Not. The Board of Directors unanimously voted to employ the full resources of the Allied Pilots Association to open a strike center and conduct a membership strike authorization vote.
While our Negotiating Committee reports good progress, we remain steadfast and focused that now is the time to reach an agreement with American Airlines. Management must understand that they need to demonstrate the same level of commitment to bargaining that other airline management teams have shown in recent months. APA must also ensure it utilizes all its legal processes for contract resolution and improvement.
To that end, APA will immediately establish a strike center, and will conduct a strike authorization vote in April. The strike authorization vote will be concluded on April 30.
We are cautiously optimistic of management’s commitments and presence at the table. APA remains committed to reach an agreement with American Airlines management in the near term, but every APA pilot understands actions speak louder than words and we must prepare for any eventuality.
These next few weeks are critical. We know that all members of the Allied Pilots Association will be closely watching how negotiations progress. We are unified. We know you are too. Stay informed. Stay engaged.
American Airlines CEO Robert Isom made this announcement to its pilots:
Hi, everyone. Delta’s pilots recently ratified a new four-year deal – one that is unprecedented in the history of collective bargaining. It’s a deal that profoundly changes the economics of a Delta pilot’s career. And that’s not just for Delta’s pilots.
That deal will determine compensation, benefits and quality of life for pilots across the rest of the industry. That means something extraordinary for American’s pilots.
That’s because our commitment – my commitment – remains unchanged: Our team members – including our pilots will be paid well and they will be paid competitively.
Let me be clear. American is prepared to match Delta pay rates and provide American’s pilots with the same profit-sharing formula as Delta’s pilots.
American’s pilots would receive pay increases of, on average, 21% in the first year of the new contract, begin participation in a much richer profit-sharing program and receive a bump in the company’s annual contribution to your 401(k) in the second year of deal.
The total pay increase for pilots is on average 40% in the fourth year of the deal. Let me give you a few examples of what this would mean.
By the end of the agreement, factoring in base salary and increased 401 (k) contributions from the company, a narrowbody captain at top of scale would make $475,000 a year – or $135,000 more a year than they earn today. A widebody captain at top of scale would earn $590,000 a year – that’s $170,000 more a year than they earn today.
And participation in the new profit-sharing program will increase the payout pool from 5% of pre-tax earnings to 10%, and up to 20% of earnings above $2.5 billion.
And it’s not just about Delta pay. It’s about making sure this works for American’s pilots. You would see significant improvements to scheduling-related and quality-of-life items. That means improved trip construction and more certainty when it comes to replacement flying and recovery obligation.
A deal like this would be a game changer for our pilots. It would be worth more than $7 billion in incremental compensation, benefits and quality-of-life improvements over the term of the four-year agreement.
This would allow you to join Delta’s pilots as the industry’s leaders in pay, but with more quality-of-life improvements unique to American Airlines.
It is what you deserve, and it can be negotiated and made available quickly.
Like you, I’m extraordinarily excited about the coming new contract and all that it will mean for you and American.
As we proceed down the negotiation homestretch, I plan to reach out frequently to share updates and make sure you have the company’s perspective and our unequivocal commitment to completing a new contract expeditiously.
I want to ensure there is no question of our intent – that is, we want you to be paid as well as your peers. We want you to have the quality of life and benefits that matter most to you. And we don’t want you to have to wait.
Now, let’s get this deal done.
Thanks for listening, and thanks for all you do every day.
Air Wisconsin Airlines will start operating as an American Eagle carrier again starting this month as it ends its relationship with United Airlines as an United Express carrier.
Aircraft are now being painted in American Eagle colors.
Previously the airline flew for American from 2015 through 2018.
Previously on August 22, 2022, Air Wisconsin announced a five year contract to operate up to 60 Bombardier CRJ200s for American starting in March 2023. These aircraft will be based at Chicago-O’Hare International Airport, to replace the Envoy Air Embraer E145s that are being transferred to Piedmont Airlines (2nd). The airline also plans to utilize some CRJ700s.
American Airlines Group Inc. today reported its fourth-quarter and full-year 2022 financial results, including:
Fourth-quarter and full-year net income of $803 million and $127 million, or $1.14 per diluted share and $0.19 per diluted share, respectively. Excluding net special items1, fourth-quarter and full-year net income of $827 million and $328 million, or $1.17 per diluted share and $0.50 per diluted share, respectively.
Record fourth-quarter revenue of $13.2 billion, which represents a 16.6% increase over the same period in 2019, despite flying 6.1% less capacity.
Ended the year with $12 billion of total available liquidity, after prepaying a $1.2 billion term loan during the fourth quarter.
Company continues to execute on its plan to pay down $15 billion of total debt2 by the end of 2025.
“The American Airlines team has produced outstanding results over the past year,” said American’s CEO Robert Isom. “We committed to running a reliable operation and returning to profitability, and our team is delivering on both. We’re proud to have led the industry in operational performance over the holidays while producing record full-year and fourth-quarter revenues, resulting in a third consecutive quarterly profit and a profit for the full year. As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction.”
Running a reliable operation
American and its regional partners operated more than 475,000 flights in the fourth quarter, with an average load factor of 83.9%. For the quarter, American ranked first in completion factor among the nine largest U.S. carriers.
The American team delivered an even stronger performance over the holidays, despite challenging conditions in many parts of the country. American outperformed the industry over the December holiday period, ranking first in completion factor. The momentum has continued into 2023 as American has delivered the best on-time arrival performance of the nine largest U.S. carriers so far this year.
Returning to profitability
American produced revenues of $13.2 billion in the fourth quarter, an increase of 16.6% versus the same period in 2019 and the highest fourth-quarter revenue in company history, driven by the continued strength of the demand environment. This record revenue was achieved while flying 6.1% less capacity than the same period in 2019. On both a GAAP basis and excluding the impact of net special items, the company produced an operating margin of 10.5% in the quarter. American also produced record revenues of $49 billion for the full year, resulting in full-year profitability.
Liquidity and balance sheet
In the fourth quarter, American made approximately $539 million in debt and finance lease payments and prepaid a $1.2 billion term loan. The company ended the year with $12 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other credit facilities. Total debt2 reduction continues to be a top priority, and the company is more than halfway to its goal of reducing total debt by $15 billion by the end of 2025. As of Dec. 31, 2022, American had reduced its total debt by more than $8 billion from peak levels in the second quarter of 2021.
Guidance and investor update
Based on demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its first-quarter 2023 adjusted earnings per diluted share3 to be approximately breakeven. Based on today’s guidance, American expects its full-year 2023 adjusted earnings per diluted share3 to be between $2.50 and $3.50.
Notes
See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information.
The company recognized $24 million of net special items after the effect of taxes in the fourth quarter, which principally included mark-to-market net unrealized losses associated with certain equity investments.
All references to total debt include debt, finance leases, operating lease liability and pension obligations.
Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of net special items cannot be determined at this time.
Top Copyright Photo: American Airlines Boeing 737-823 WL N997NN (msn 33250) LAX (Michael B. Ing). Image: 959831.
American Airlines aircraftb photo gallery (Boeing):
American Airlines has announced its largest schedule ever to London Heathrow Airport for next summer.
The carrier will operate 26 daily flights to LHR from 11 different U.S. cities.
AA will operate four flights daily from its New York (JFK) hub, Chicago (O’Hare) hub and Dallas/Fort Worth hub.
The airline will also operate three flights daily from its Charlotte hub and Los Angeles hub.
Twice-daily flights will also be operated from the Miami and Philadelphia hubs along with daily service from Boston, Phoenix, Raleigh-Durham and Seattle/Tacoma (fed by partner Alaska Airlines).
Top Copyright Photo: American Airlines Boeing 777-323 ER N730AN (msn 31554) LHR (SPA). Image: 931582.
American Airlines aircraft photo gallery (Boeing):