Category Archives: American Airlines

American pushes the MAX 8 date to March 5, 2020

American Airlines made this announcement for the Boeing 737-8 MAX 8:

American Airlines remains in continuous contact with the Federal Aviation Administration, Department of Transportation and Boeing. Based on the latest guidance, American anticipates that the resumption of scheduled commercial service on American’s fleet of Boeing 737 MAX aircraft will occur March 5, 2020. Once the aircraft is certified, American expects to run exhibition flights, or flights for American team members and invited guests only, prior to March 5.

Frequently asked questions

Question: When will American run a schedule change and inform customers who were booked on a MAX from January 16 through March 4?
Answer: American had previously cancelled service on the MAX through Jan. 15. On Nov. 17, American will run a formal schedule change, and customers who were previously booked on a MAX through March 4 will see their reservation updated on aa.com.

Question: Will there be additional changes to the schedule once the MAX returns to commercial service?
Answer: American expects to gradually phase in the MAX for commercial service and will increase flying on the aircraft throughout the month of March. Since American will gradually phase the MAX into our operation over the course of a month, additional refinements to our schedule may occur. Affected customers will be contacted directly.

Question: My flight wasn’t scheduled to be on a MAX. Will it be canceled?
Answer: A flight that was not scheduled as a MAX flight might be canceled to enable our team to cover a MAX route with a different aircraft, in order to affect the smallest number of customers. In total, approximately 140 flights will be canceled per day through March 4.

Question: How will customers know if they are impacted?
Answer: American’s Reservations team will contact affected customers directly by email or telephone beginning Nov. 17. Customers who booked through a travel agent will be contacted by their agency directly.

Question: What is American’s policy for when the MAX returns?
Answer: Details regarding policies and procedures for customers who do not wish to fly on the MAX once the aircraft enters scheduled service March 5 will be released in the coming weeks.

Question: My flight was canceled and I don’t want to rebook. Can I get a refund?
Answer: Yes. If a flight is canceled and a customer chooses to not be rebooked, they may request a full refund by visiting aa.com/refunds.

Advertisements

American Airlines to Add 165 Tech Ops Positions in Tulsa

American Airlines has announced it is hiring an additional 165 aviation maintenance technicians (AMTs) and support positions in 2019, resulting in more than 1,000 new Tech Ops positions added to the company in 2019. These new jobs underscore American’s commitment to operational excellence and performing more maintenance work in-house than any other airline.

The newest positions will be at the airline’s maintenance base in Tulsa, Oklahoma called Tech Ops — Tulsa. Tech Ops – Tulsa is the world’s largest commercial aviation base maintenance facility and American recently announced 400 new Tech Ops positions to assist with additional work coming to the base.

The new team members, primarily Federal Aviation Administration-licensed mechanics, will focus on interior modifications to Boeing 737-800 and Airbus A321 aircraft to drive operational reliability and create a consistent product across American’s fleet.

This year American has added more than 1,000 Tech Ops positions in both frontline team members and support staff, further demonstrating its commitment to ensuring its Tech Ops team is positioned to provide the best service and product for customers and team members. American employs more than 15,000 Tech Ops professionals around the world.

All photos by American Airlines.

American to fly from Los Angeles to Christchurch

American Airlines Boeing 787-8 Dreamliner N807AA (msn 40625) LAX (Michael B. Ing). Image: 933327.

American Airlines has made this announcement:

A trip to the breathtaking landscape of the majestic Southern Alps will become much shorter when American Airlines launches the only nonstop service from Los Angeles International Airport (LAX) to Christchurch, New Zealand (CHC), next October. The airline is also adding the only direct service between Dallas Fort Worth International Airport (DFW) and Auckland, New Zealand (AKL), which will increase connecting opportunities for more customers across the United States. These routes are a direct result of the recently approved joint business with Qantas, which delivers new customer benefits like enhanced codeshare opportunities and increased frequent flyer benefits for American and Qantas customers.

The gateway to the South Island

Christchurch is the largest city in the South Island of New Zealand, and as the only carrier to operate this route, American will introduce its customers to one of the world’s most unique destinations.

“The South Island sums up everything that our customers are looking for in New Zealand — adventure, culture and wildlife found no where else,” said Vasu Raja, American’s Senior Vice President of Network Strategy. “We want to make their lifelong dreams a reality and bring New Zealand’s beauty even closer as the gateway to the South Island where you can drive, hike, cruise and fly to a variety of classic New Zealand experiences.”

American will fly to CHC three times per week from October 2020 through March 2021 on a Boeing 787-8. The 787-8 features 20 Flagship Business seats and 28 Premium Economy seats, providing additional comfort for the 13-hour flight. The aircraft offers a variety of entertainment options for customers, with access to power at every seat, live television, and hundreds of movies, music, games and TV shows.

LAX to CHC creates unique one-stop connections to the South Island not previously available by any other carrier. Qantas and Jetstar will connect passengers from CHC on to Wellington and Melbourne — some of the most popular destinations in the Pacific.

A new way to New Zealand

American currently operates seasonal service from LAX to AKL and will add new service from DFW next year. Flights will be operated with American’s state-of-the-art 787-9, with 30 Flagship Business seats and 21 Premium Economy seats. New flights from DFW to AKL will enable new one-stop connections to New Zealand from more than 70 cities across the United States.

“Now, we’re able to get customers from places like Louisville, Savannah or Monterrey, Mexico, all the way to New Zealand with just one stop,” said Raja.

As American enhances its commitment to the region, seasonal LAX to AKL service will resume earlier next year — Oct. 7 — adding three weeks of service to the increasingly popular destination.

“The South Island is a must-see for any international visitor to New Zealand,” said Stephen England-Hall, Tourism New Zealand’s Chief Executive. “Thanks to the new nonstop flights from Los Angeles to Christchurch and Dallas-Fort Worth to Auckland, it’s is now easier than ever before to experience all that unique and welcoming New Zealand has to offer.”

Benefits of the Qantas Joint Business

American and Qantas recently received final approval to form a joint business, which promises significant customer benefits not possible through any other form of cooperation. The carriers have already rolled out improved frequent flyer benefits, including higher earning rates for points and status credits on each airline’s network, and have expanded codeshare routes on each other’s network. Qantas will also increase from six weekly flights between Sydney, Australia (SYD), and DFW to daily service by mid-2020. Additionally, Qantas announced new service from San Francisco International Airport (SFO) and Chicago O’Hare International Airport (ORD) to Brisbane, Australia (BNE), which will launch in February and April respectively. Qantas will have its code on American’s new flights to New Zealand, giving Qantas frequent flyers more opportunities to earn and redeem Qantas points and status credits on American. Next year, American and Qantas will provide the most service to Australia and New Zealand from the United States.

LAX–AKL flights beginning in Oct. 2020 will be available for purchase starting Nov. 9. New LAX–CHC and DFW–AKL flights will be available for purchase starting Nov. 30.

Origin Destination Departure Time* Arrival Time* Season
DFW AKL 10:30 p.m. 7:40 a.m./8:40 a.m.
(+2 days)
Oct. 25, 2020–March 25, 2021
3 x weekly through Nov. 29
Daily starting Dec. 1
AKL DFW 11:15 a.m./12:15 p.m. 7:10 a.m. Oct. 27, 2020–March 27, 2021
3 x weekly through Nov. 29
Daily starting Dec. 3
LAX CHC 11:30 p.m. 9:25 a.m./10:25 a.m. Oct. 25, 2020–March 24, 2021
3 x weekly
CHC LAX 1:10 p.m./2:10 p.m. 6 a.m. Oct. 27, 2020–March 26, 2021
3x weekly

*Flight times subject to change and account for Daylight Savings.
New flights are subject to government approval.

Top Copyright Photo: American Airlines Boeing 787-8 Dreamliner N807AA (msn 40625) LAX (Michael B. Ing). Image: 933327.

American Airlines aircraft slide show (Boeing):

 

American Airlines Group reports a third quarter 2019 profit

American Airlines Group Inc. today reported its third quarter 2019 results, including these highlights:

  • Reported third-quarter 2019 pre-tax income of $557 million and net income of $425 million. Excluding net special items, both pre-tax income and net income rose more than 15% year over year to $835 million and $630 million,1 respectively.
  • Third-quarter earnings were $0.96 per diluted share. Excluding net special items, earnings per share grew 20% year over year to $1.42 per diluted share1.
  • Reported record third-quarter revenue of $11.9 billion. Also reported third-quarter total revenue per available seat mile (TRASM) of 15.71 cents, an increase of 2% year over year. This marks the 12th consecutive quarter of TRASM growth.
  • Returned $244 million to shareholders in the form of dividends and share repurchases in the third quarter.

“We are pleased to report an earnings increase of 15% and earnings per share growth of 20% for the third quarter, excluding net special items,” said Chairman and CEO Doug Parker. “However, we know that our results should have been better. Our third quarter was impacted by the continued grounding of the Boeing 737 MAX and the operational challenges resulting from ongoing labor contract negotiations. These challenges affected our customers, our shareholders and our team members, who we thank for their hard work and perseverance.”

“We are taking decisive action to correct this performance and are excited about our prospects for 2020 and beyond. As we look forward, we are committed to restoring operational excellence, growing efficiently and profitably, and generating significant free cash flow for our investors.”

Third-Quarter Revenue and Expenses
Pre-tax earnings excluding net special items for the third quarter of 2019 were $835 million, a 16% year-over-year increase from the third quarter of 2018. Excluding net special items, net income was $630 million, or $1.42 per diluted share.

GAAP Non-GAAP1
2Q19
2Q18 2Q19
2Q18
Operating income ($ mil) 808 685 1,042 894
Pre-tax income ($ mil) 557 496 835 720
Pre-tax margin 4.7 % 4.3 % 7.0 % 6.2 %
Net income ($ mil) 425 372 630 547
Earnings per diluted share $ 0.96 $ 0.81 $ 1.42 $ 1.19

Strong passenger demand drove a 3% year-over-year increase in third-quarter 2019 total revenue to a record $11.9 billion. Driven by a 3 percentage point increase in total passenger load factor, passenger revenue per available seat mile (PRASM) grew 3% to a record 14.50 cents. Cargo revenue decreased 20% to $208 million due primarily to a 17% decrease in cargo ton miles. Other revenue was down 4% to $708 million. Third-quarter 2019 TRASM increased by 2% year over year to a record 15.71 cents on a 1% increase in total available seat miles, marking the 12th consecutive quarter of growth.

Total third-quarter 2019 operating expenses were $11.1 billion, up 2% year over year. Total operating cost per available seat mile (CASM) was 14.64 cents in the third quarter of 2019, up 1% from the third quarter of 2018. Excluding fuel and net special items, third-quarter 2019 CASM was 11.07 cents, up 5% year over year due primarily to higher salaries and benefits, maintenance and regional expense, and lower than planned capacity.

DFW 900
Earlier this summer, American embarked on a network expansion project by adding approximately 100 daily departures at its largest hub, Dallas Fort Worth International Airport (DFW). The results have surpassed initial expectations, and, in the third quarter, the company grew domestic capacity at DFW by 9% and produced PRASM growth of 3.5% compared to 2018. This is the largest expansion of capacity at any hub in the U.S. in more than a decade and sets a positive precedent for American’s planned expansions next year at Charlotte Douglas International Airport and Ronald Reagan Washington National Airport in 2021.

Fleet Update
On March 13, a directive from the Federal Aviation Administration (FAA) grounded all U.S.-registered Boeing 737 MAX aircraft. The American fleet currently includes 24 MAX aircraft with an additional 76 aircraft on order, of which five were scheduled to be delivered in the third quarter. As a result of this directive, American canceled 9,475 flights in the third quarter of 2019. The company estimates that the cancellations in the third quarter negatively impacted pre-tax income by approximately $140 million.

The company has removed all MAX flying from its flight schedule through Jan. 15, 2020. With the flight cancellations extending through the remainder of 2019, the company now expects the MAX cancellations will negatively impact its full-year 2019 pre-tax income by approximately $540 million.

Operations
American has seen recent improvement in key operational metrics, including on-time departures and arrivals. The company’s on-time performance in September was its best performance in almost two years, and this improvement has continued into October.

American Airlines President Robert Isom said, “We continue to strengthen our operations with ongoing enhancements, including retiring older aircraft, simplifying our fleet and schedule, and fortifying our maintenance and airport resources. Our underlying execution is solid, and we are committed to returning American to a position of operational excellence.”

Share Repurchases and Dividends
American returned $200 million to shareholders through the repurchase of 7.3 million shares and also paid $44 million in dividends in the third quarter. The company has approximately $850 million remaining of its existing $2 billion share repurchase authorization2. In aggregate, American has returned more than $13 billion to shareholders over the past five years through share repurchases and dividends.

American also declared a dividend of 10 cents per share to be paid Nov. 20 to stockholders of record as of Nov. 6, 2019.

Guidance and Investor Update
American expects its fourth-quarter 2019 TRASM to be flat to up 2% year over year. The company also expects its fourth-quarter 2019 pre-tax margin excluding net special items to be between 5% and 7%3. Based on today’s guidance, American expects its 2019 diluted earnings per share excluding net special items to be between $4.50 and $5.503.

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.

1 Third quarter 2019 operating net special items principally included a $201 million noncash impairment charge related to the planned retirement of the company’s Embraer E190 fleet, $72 million of fleet restructuring expenses and $29 million of merger integration expenses, offset in part by a $53 million credit to reduce certain litigation reserves. The company also reported $44 million of nonoperating net special items, which principally included mark-to-market net unrealized losses associated with certain equity and other investments.
2 Share repurchases under the company’s repurchase programs may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions. Any such repurchases that may be made from time to time will be subject to market and economic conditions, applicable legal requirements and other relevant factors. The company is not obligated to repurchase any specific number of shares and its repurchase of AAG common stock may be limited, suspended or discontinued at any time at its discretion and without prior notice.
3 American 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.

American Airlines aircraft photo gallery (Boeing):

American to add nonstop DFW – Hilton Head Island service + Chicago and Philadelphia

American Airlines is adding a new nonstop spoke route from the Dallas/Fort Worth hub to Hilton Head Island, SC. (HHH).

The new weekly seasonal route will operate from March 7 through August 15.

The carrier will also begin flying from Hilton Head Island to its Chicago (O’Hare) and Philadelphia hubs also on March 7, 2020.

Hilton Head Island will be served with Embraer 175 aircraft.

American currently has service between its Charlotte hub and Hilton Head Island.

American Airlines and Miami Heat expand their partnership

American Airlines made this announcement:

Building on their 20-year relationship, American Airlines and the Miami HEAT announced today a multiyear partnership for the airline to serve as the team’s official airline. Additionally, as part of a new NBA program beginning this season allowing teams to designate international sponsorship rights, American has been named as the HEAT’s first international marketing partner.

While previously sponsors were limited to a 75-mile marketing territory, as an international partner American is one of the first NBA team partners to utilize the worldwide rights and connect with HEAT fans around the world. The international program allows teams to include global advertising and marketing rights worldwide; activation at retail locations globally and rights to post non-game team content on the sponsors’ own digital and social media sites. The opportunity to celebrate the passion of HEAT fans, both in Miami and internationally, aligns with American’s place as Miami’s largest international carrier.

Additionally, American will be the presenting partner of the HEAT City Edition uniform campaign. City Edition gave birth to the wildly popular HEAT Vice uniform. Since 2018, the three iterations of the Vice uniform have sold more than all other franchises combined.

“As we celebrate the 30th anniversary of our Miami hub, our expanded partnership with the HEAT is the perfect opportunity to recognize Miami and the major role it plays in connecting our customers to the rest of the world,” said Janelle Anderson, American’s Vice President – Global Marketing. “The Miami HEAT has a proud history of delivering innovative, fan-focused campaigns. American shares this passion and looks forward to collaborating with the HEAT to excite fans in Miami and around the world.”

American’s partnership with the HEAT is all about helping Miami sports fans on life’s journey. The agreement provides the ability for American to share their passion for the HEAT with fellow fans, immersing them in pregame social media, creating gameday experiences and contests that give fans a chance to win travel experiences on American and showing a strong brand presence during HEAT games.

“For two decades, the Miami HEAT and American Airlines have been synonymous with the growth and branding of Miami,” said Eric Woolworth, President of Business Operations at the HEAT Group. “Our naming rights partnership is the longest such deal in the history of professional sports in this region, cementing our commitment not only to each other, but to the entirety of the South Florida community. Like many long-term partnerships, ours continues to evolve and has now expanded into the global marketing space. As this new era begins, everyone at the HEAT is ecstatic to forge ahead working side-by-side with American Airlines.”

American’s commitment to the Miami community has been unmatched over the last 30 years. In 1989, American had just 19 flights a day to six cities from Miami International Airport (MIA). Today, American operates more than 350 flights a day to nearly 130 destinations and carries 30 million people to and from MIA annually. MIA is now the largest international gateway in the American system. The airline is also the largest carrier to provide service to Latin America from MIA.

Most recently, American announced more flights from MIA to Santiago, Chile; Lima, Peru; and São Paulo, Brazil, signifying a growing commitment to the Latin American region. American reaches more than 70 cities across Latin America and the Caribbean with 135 flights — more service than any other carrier to that region of the world. This summer, American expanded its reach by launching new service to Cordoba, Argentina, and Santiago de Cuba, Cuba.

“Along with our 13,500 Miami-based team members, American is committed to investing in the Miami community,” said Juan Carlos Liscano, American Airlines Vice President in Miami. “This partnership with the HEAT, is part of that commitment to bring people throughout the South Florida region and from around the world together.”

Photos: American Airlines.

American Airlines celebrates 30 years in Miami

This month, American Airlines celebrates the 30th anniversary of its bold move to establish a hub at Miami International Airport (MIA).

In October 1989, American operated just 19 flights a day to six cities from MIA. Today, Miami’s hometown carrier operates more than 350 flights a day to nearly 130 destinations from the hub — American’s largest international gateway— including service to more than 70 cities across Latin America and the Caribbean. American’s Cargo operation has also grown substantially. In 1989, American moved 39.5 million pounds of mail and freight. Today, it moves nearly 380 million pounds annually.

The Most Service to Latin America

No other carrier at MIA offers as much service to Latin America as American. Last month, American announced increased service between MIA and:

  • Santiago, Chile (SCL)
  • Lima, Peru (LIM)
  • São Paulo, Brazil (GRU)

Earlier this year, the airline added new service to Cordoba, Argentina (COR), and Santiago de Cuba, Cuba (SCU) — destinations that can only be reached from the U.S. on American.

A $21 Billion Economic Impact

American is a critically important economic engine for Miami and South Florida. What started out as a small hub in 1989 with fewer than 300 employees has grown to be the third-largest private employer in Miami-Dade County with more than 13,500 team members and an annual payroll exceeding $1.8 billion.

American’s economic impact also goes far beyond the team members that care for our customers. More than 162,000 additional jobs are created through businesses that support our MIA operations, meaning that American’s Miami hub contributes more than $21 billion annually to South Florida’s economy.

“American Airlines has a significant economic impact on our county,” said Miami-Dade County Mayor Carlos A. Gimenez. “Its Miami hub helps drive South Florida’s economy, and its robust schedule is critical to our community’s economic development. We value American’s commitment to this community and know that its growth in the coming years will continue to stimulate our local economy.”

Investment in Miami and South Florida

American’s commitment to MIA doesn’t stop with its network and team members. The airline has invested heavily in the community over the last three decades and supported dozens of organizations, including the United Way, Camillus House, Autism Speaks, Feeding South Florida and the Nicklaus Children’s Hospital Foundation. In 2018, American’s corps of caring team member volunteers, the DoCrew, dedicated more than 30,000 hours of their time to these and other nonprofit organizations.

American is also committed to promoting Miami as a great place to live, work and play. The carrier partners with the Beacon Council, Greater Miami Convention and Visitors Bureau and Greater Miami Chamber of Commerce, amongst other civic organizations, to ensure the continued growth of both the city of Miami and the hub. American’s success in South Florida has helped grow the city’s reputation as a premier destination for travelers around the world.

“Greater Miami is a global gateway and welcomes a high volume of international visitors daily,” said William D. Talbert, III, CDME, President and CEO of Greater Miami Convention & Visitors Bureau. “Today, the GMCVB celebrates American Airlines Miami hub 30 year anniversary alongside our partners in travel. With the majority of Greater Miami’s visitors arriving via air, American Airlines infrastructure investment in our community serves as a foundational platform to the local tourism industry’s vitality.”

Help for Neighboring Communities

American has also been committed to providing disaster relief for neighboring communities after a number of hurricanes impacted the region over the past few years. After hurricanes Irma and Maria wreaked havoc across the Caribbean islands in 2017, MIA team members immediately stepped up to help people impacted by the storms. American transported 460,000 pounds of relief supplies to Puerto Rico, including food, water, cots, tarps and generators, in wake of the storm. In total, the number of cargo and relief items delivered to the Caribbean totaled more than 3 million pounds.

Most recently, the MIA team helped colleagues in the Bahamas who were impacted by Hurricane Dorian. American’s Miami hub raised more than $55,000 for team members who lost nearly everything in the storm. The team also shipped more than 14,000 pounds of relief supplies within days of the hurricane.

“At American, we know that what’s good for Miami-Dade is good for American,” said Liscano. “Our commitment to Miami remains as strong as ever. We will continue to be the airline of choice for our customers, the premier gateway to Latin America and a loyal member of the South Florida community.”