Category Archives: American Airlines

American Airlines opens 15 new gates at DFW Airport

American Airlines made this announcement:

The world’s largest airline took another step toward unprecedented growth at its most profitable hub today (May 3). American Airlines opened 15 new gates in the Terminal E satellite at Dallas Fort Worth International Airport (DFW), supporting more than 100 daily regional flights for American Eagle service.

The completely renovated space includes refreshed ticket counters and gate areas as well as new ramp lighting, moving walkways, elevators and escalators. Later this summer, American will also open a new Admirals Club in Terminal E, and the satellite terminal will be home to DFW’s only Whataburger.

American has been steadily adding DFW service this summer, and beginning in early June, the airline will operate more than 900 daily flights from the hub. That’s 100 more than last summer, including service to 23 new markets. They include: Dublin (DUB); Munich (MUC); Kalispell, Montana (FCA); Harlingen, Texas (HRL); Monterey, California (MRY); and Augusta, Georgia (AGS). Eighty-four existing markets will receive additional service from DFW, including Boston (BOS), Los Angeles (LAX) and New York (LGA). In total, customers have access to 234 nonstop destinations from DFW and the resulting American network can enable over 9,000 one-stop connections through DFW — more than any other airline hub in the world.

“American is the largest airline in the world and the largest carrier at DFW,” said Vasu Raja, Vice President of Network and Schedule Planning for American. “By adding 100 flights to our most profitable hub, we have the opportunity to connect more people to more destinations than ever before. By adding service to new destinations and increasing service to some of our customers’ favorite spots, we’re building a connecting network that can get them anywhere.”

Upcoming milestones include the opening of a Flagship Lounge featuring Flagship First Dining and a renovated Admirals Club in Terminal D, scheduled for May 16, as well as the opening of six mainline gates at DFW Terminal B in June.

Leaders from American, Envoy and DFW Airport celebrate the opening of the Terminal E satellite.

Customers will enjoy refreshed ticket counters and gate areas, new moving walkways, elevators and escalators.

Terminal E Satellite

Beginning May 3, select American Eagle flights will depart from DFW Terminal E satellite gates E22-E30.
Skylink connects all terminals at DFW including A, B, C, D and E.
Gates E22-E30 are accessible via 5-10 minute walk through the tunnel next to gate E21.
Minimum connection times connecting to flights scheduled in E22-E30 have been increased by 10 minutes.
There is no change to Terminal E ticket counters or parking.

By the Numbers

15: New gates and 100 flights to be operated at DFW Terminal E satellite
6: New mainline gates opening at DFW Terminal B in June
900+: Daily American Airlines flights from DFW during the peak summer schedule
104,000: Customers American will serve at DFW every day this summer
234: Non-stop American Airlines destinations from DFW, including 23 new destinations
9,000+: One-stop American Airlines city pairs available to connect through DFW this summer, more than any other airline hub in the world

What Does It Take to Build the Largest Connecting Hub in the World?

1,500: Pounds of reflective beads and 240 gallons of paint to stripe the ramp supporting the new gates at Terminal E satellite
2,500: Different types of aircraft parts and tooling moved to DFW Terminal E satellite
868: Signs and maps changed out at DFW to reflect new Terminal E satellite gates
380: New pieces of ground support equipment to support our growing operation

American to add a new route from Philadelphia to Bentonville (Northwest Arkansas)

American Airlines is planning to add a new American Eagle route from its Philadelphia hub to Bentonville, AR (Northwest Arkansas), the home of Walmart, on September 4, 2019.

The new route will be operated by Republic Airline Embraer 175s.

Republic Airline’s parent, Republic Airways, introduced this new livery in April 2019 on the pictured Embraer ERJ 170-100SU N826MD (msn 17000046).

Photos: Republic Airways.

In other news, American will also add Embraer ERJ 140 service from the Dallas/Fort Worth hub to the Tri-Cities Airport (Northeast Tennessee) on August 15, 2019 according to Airline Route. The new route will be operated by Envoy Air.

American Airlines’ new routes to Europe this summer

New nonstop routes to Europe

Charlotte, NC (CLT) to Munich, Germany (MUC) – started March 30, 2019
Chicago O’Hare (ORD) to Athens, Greece (ATH) – starting May 3 through September 28, 2019
Dallas / Fort Worth, TX (DFW) to Dublin, Ireland (DUB) – starting June 6 through September 28, 2019
Dallas-Fort Worth, TX (DFW) to Munich, Germany (MUC) – starting June 6 through October 26, 2019
Philadelphia, PA (PHL) to Edinburgh, Scotland (EDI) – started April 2 through October 26, 2019
Philadelphia, PA (PHL) to Bologna, Italy (BLQ) – starting June 6 through September 28, 2019
Philadelphia, PA (PHL) to Dubrovnik, Croatia (DBV) – starting June 7 through September 27, 2019
Philadelphia, PA (PHL) to Berlin, Germany (TXL) – starting June 7 through September 28, 2019
Phoenix, AZ (PHX) to London-Heathrow (LHR)

(Boeing illustration) (PRNewsfoto/Boeing)

American Airlines Group reports first quarter 2019 profit, details MAX 8 impact

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

Reported a first-quarter 2019 pre-tax profit of $245 million, or $314 million excluding net special items¹, and a first-quarter net profit of $185 million, or $237 million excluding net special items¹
First-quarter earnings were $0.41 per diluted share, or $0.52 per diluted share excluding net special items¹
Reported record first-quarter revenue of $10.6 billion. Also reported record first-quarter total revenue per available seat mile (TRASM) — the 10th consecutive quarter of TRASM growth
Returned $646 million to shareholders in the form of dividends and share repurchases in the first quarter

“We want to thank our 130,000 team members for the outstanding job they did to take care of our customers, despite the challenges with our fleet during the quarter. Their hard work led American to record revenue performance under difficult operating conditions,” said Chairman and CEO Doug Parker.

“As we progress toward the busy summer travel period, demand for our product remains strong. However, our near-term earnings forecast has been affected by the grounding of our Boeing 737 MAX fleet, which we have removed from scheduled flying through Aug. 19. We presently estimate the grounding of the 737 MAX will impact our 2019 pre-tax earnings by approximately $350 million. With the recent run-up in oil prices, fuel expenses for the year are also expected to be approximately $650 million higher than we forecast just three months ago.

“Even with these challenges, we expect our 2019 earnings per diluted share excluding net special items² to grow approximately 10% versus 2018,” Parker continued. “As we look forward to 2020 and beyond, we anticipate that our free cash flow production will increase significantly as our historic fleet replacement program winds down. We are very bullish on our future and focused on creating value for our shareholders.”

First-Quarter Revenue and Expenses

Pre-tax earnings excluding net special items for the first quarter of 2019 were $314 million, a $149 million decrease from the first quarter of 2018.


	GAAP				Non-GAAP¹
	1Q19		1Q18		1Q19		1Q18

Operating income ($ mil)		375		396		513		621

Pre-tax income ($ mil)		245		238		314		463
Pre-tax margin		2.3%		2.3%		3.0%		4.4%

Net income (loss) ($ mil)		185		159		237		353

Earnings (loss) per diluted share	$	0.41	$	0.34	$	0.52	$	0.74

Strong passenger demand drove a 1.8% year-over-year increase in first-quarter 2019 total revenue, to a first-quarter record $10.6 billion. Driven by a record first-quarter total passenger load factor of 82.2%, passenger revenue per available seat mile (PRASM) grew 0.6% to 14.49 cents. Cargo revenue decreased 4% to $218 million due in part to a 9.1% decrease in cargo ton miles. Other revenue was up 1.9% to $708 million due primarily to higher loyalty revenue. First-quarter TRASM increased by 0.5% to a record 15.87 cents on a 1.3% increase in total available seat miles. This marks the 10th consecutive quarter of TRASM growth for American.

Total first-quarter 2019 operating expenses were $10.2 billion, up 2% year-over-year. Total operating cost per available seat mile (CASM) was 15.31 cents in the first quarter of 2019, up 0.7% from first-quarter 2018. Excluding fuel and special items, first-quarter CASM was 11.88 cents, up 2.7% year-over-year, driven primarily by a higher volume of heavy maintenance checks.

Fleet Update

On March 7, the company announced the unplanned removal of 14 737-800 aircraft from service for remediation work following the installation of new aircraft interiors. This resulted in the cancellation of approximately 940 flights in the first quarter. Work on these aircraft has been completed and all aircraft have been returned to service.

In addition, on March 13, the Federal Aviation Administration (FAA) grounded all U.S.-registered 737 MAX aircraft. The American fleet currently includes 24 737 MAX 8 aircraft with an additional 76 aircraft on order. As a result, American canceled approximately 1,200 flights in the first quarter.

In aggregate, the company estimates that these grounded aircraft and associated flight cancellations impacted its first quarter pre-tax income by approximately $80 million.

The company has removed all 737 MAX flying from its flight schedule through Aug. 19, which is approximately 115 flights per day. These flights represent approximately 2% of American’s total capacity each day this summer. Although these aircraft represent a small portion of the company’s total fleet, its financial impact is disproportionate as most of the revenue from the cancellations is lost while the vast majority of the costs remain in place. In total, the company presently expects the 737 MAX cancellations, which are assumed to extend through Aug. 19, to impact its 2019 pre-tax earnings by approximately $350 million.

Strategic Objectives

American’s success is guided by three strategic objectives: Make culture a competitive advantage, create a world-class customer experience and build American Airlines to thrive forever.

Make Culture a Competitive Advantage

Taking care of team members translates into better customer care. We continue to invest in improved tools, training and support for team members and in the first quarter, American:

Opened a new 191,000-square-foot hangar in Chicago (ORD), reopened Tulsa Hangar 2 Dock 2D following its modification to accommodate larger aircraft and announced plans to hire 250 new aviation maintenance technicians (AMTs) this summer.
Hosted more than 5,000 leaders at the airline’s Annual Leadership Conference in Dallas. Team members who oversee people spent a full day learning about American’s mission to care for people on life’s journey.
Accrued $20 million for the company’s profit-sharing program.
Honored 100 team members at the company’s Annual Chairman’s Award celebration in Dallas earlier this month.
Raised $1.4 million for the Cystic Fibrosis Foundation.
Received recognition as a leader among U.S. companies in LGBTQ workplace policies for the 17th year in a row through the airline’s highest rating from the Human Rights Campaign in the 2019 Corporate Equality Index.

Create a World-Class Customer Experience

American has invested more than $28 billion in its people, product and fleet over the past five years — the largest investment of any carrier in commercial aviation history over this period. In the first quarter, American:

Took delivery of 15 new aircraft, including its first two Airbus A321neos, a fuel-efficient aircraft that has power at every seat, larger overhead bins and free wireless entertainment to each customer’s own device, including free live television.
Partnered with Apple Music to offer complimentary Wi-Fi access for customers to stream from their personal Apple Music accounts. Customers with Apple Music subscriptions can access their playlists for free onboard any domestic flight equipped with ViaSat satellite Wi-Fi.
Introduced new partnerships with Blade, offering helicopter transfers in Los Angeles (LAX) and New York (JFK), and The Private Suite at LAX, offering off-terminal entrance and private screening service.
Opened a newly renovated Terminal B in Boston (BOS) and a newly renovated Admirals Club in Concourse B in Charlotte (CLT).
Provided AAdvantage members more ways to earn miles with its enhanced relationship with Hyatt Hotels. Through this relationship, elite members in both the AAdvantage and World of Hyatt loyalty programs will be rewarded with more ways to earn points, miles and status on qualifying American flights and stays at Hyatt Hotels.

Build American Airlines to Thrive Forever

With a nearly 100-year legacy, American is building a company that we expect to be consistently profitable today and in the future. This long-term initiative was furthered during the quarter as American:

Returned $646 million to shareholders through the repurchase of 16.7 million shares and the payment of $46 million in dividends. The company has $1.1 billion remaining of its existing $2 billion share repurchase authorization³.
Expanded the codeshare and began offering reciprocal frequent flyer benefits with China Southern Airlines.
Submitted an application to the U.S. Department of Transportation (DOT) that proposes additional service to Tokyo Haneda (HND) from LAX, Dallas-Fort Worth (DFW) and Las Vegas (LAS). These slots would provide American’s customers better access to downtown Tokyo and to the domestic network of its Pacific Joint Business partner, Japan Airlines.
Announced a planned co-location with British Airways at Terminal 8 at JFK giving customers a unified experience. American and British Airways will invest $344 million in Terminal 8 over the next three years to prepare for the co-location expected in 2022.
Resubmitted an application to the DOT seeking approval of its joint business agreement with LATAM Airlines Group.

Quarterly Dividend

American declared a dividend of $0.10 per share to be paid on May 22, to stockholders of record as of May 8.

Guidance and Investor Update

American expects its second-quarter 2019 TRASM to be up 1% to 3% year over year. The company also expects its second-quarter 2019 pre-tax margin excluding net special items to be between 7% and 9%². Based on today’s guidance, American now expects its 2019 diluted earnings per share excluding net special items to be between $4.00 and $6.00².

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.

In the first quarter, the company recognized $69 million in net special items before the effect of income taxes. First-quarter operating special items, consisting of $138 million in net charges, principally included $83 million of fleet restructuring expenses and $37 million of merger integration expenses. The company also recognized nonoperating special items, consisting of $69 million in net credits, principally related to mark-to-market net unrealized gains associated with certain equity investments.
American is unable to reconcile certain forward-looking projections to GAAP, as the nature or amount of special items cannot be determined at this time.
Share repurchases 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 will be made from time to time 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 or continue a dividend in any amount or for any fixed period, and either may be suspended or discontinued at any time at the company’s discretion and without prior notice.

Top Copyright Photo (all others by the airline): American Airlines Boeing 737-8 MAX 8 N303RE (msn 44447) FLL (Andy Cripps). Image: 945355.

American aircraft slide show:

American Airlines to resume a second daily Miami-St. Lucia flight in June

American Airlines has made this announcement:

A new seasonal flight from Miami combined with the lowest airfares ever make this summer the perfect time to visit Saint Lucia. And hotels are offering attractive rates, adding even more incentive to book a family vacation, romantic getaway or wellness-focused trip.

On June 6, American Airlines will resume a second daily nonstop flight from Miami International Airport (MIA) to Hewanorra International Airport (UVF) at 8:45 am. Flight AA1335 arrives in Saint Lucia at 11:21 am, giving vacationers a full afternoon to enjoy on their day of arrival. This flight joins the year-round daily flight departing MIA at 11:13 am, perfectly timed for morning connections from American Airlines feeder cities.

Most famous for nearly 100 miles of coastline and pristine beaches with clear Caribbean waters, activities abound for vactioners of all ages. Visitors will enjoy newly-renovated facilities at Soufriere’s Hummingbird Beach; the highly-Instagrammed natural mud baths; world-class diving and snorkeling; the Tet Paul Nature Trail and the signature Pitons.

16 American Airlines passengers taken to a Boston hospital after a flight from Miami

13 American Airlines passengers reported feeling ill on April 21 after arriving at Boston Logan International after a flight from Miami International Airport. The symptoms were minor.

Boston EMS made this announcement on social media:

This morning (April 21) at approximately 9:20am, Boston EMS responded to Logan Airport with multiple units. A total of 13 patients were transported to MGH, all for symptoms that were minor in nature.

Read the full report from the AP: CLICK HERE

American, Delta and United pressure the White House against Qatar Airways and Air Italy

The CEOs of American Airlines, Delta Air Lines and United Airlines have published an open letter to the White House concerning Qatar Airways and Air Italy:

President Donald J. Trump The White House
1600 Pennsylvania Avenue NW Washington, DC 20500

Dear President Trump,

Your administration was built on the enduring principle that the U.S. government will stand up for American workers against foreign governments that break their trade agreements with our country. The American people are grateful for that promise.

Today, America’s airline workers are counting on you to step up on their behalf.

In January 2018, your administration reached a historic agreement with Qatar over its Open Skies violations. While we hoped this agreement would hold Qatar accountable and force its heavily subsidized airline, Qatar Airways, to follow the rules and stop hurting American workers, that did not happen.

Today, Qatar Airways is ignoring the 2018 agreement that your administration signed by using massive government subsidies to launch new routes to the United States through its stake in Air Italy. Air Italy was a struggling regional carrier until Qatar Airways injected tens of millions of dollars into the company to circumvent the agreement and expand its U.S. presence. In the last few days, Qatar Airways has used its Italian proxy to launch routes to Los Angeles and San Francisco, and added flights to Miami – a further effort to undermine U.S. airlines. Simply put, Qatar Airways represents a grave threat to American jobs and the health of the airline industry.

No rule-abiding business can compete with a massively subsidized airline that ignores economic realities and can wipe away losses with one infusion of government cash after another.

We respectfully encourage your administration to hold Qatar accountable for violating
its agreement with the United States and affirm that we will not tolerate these continued infractions. We appreciate your resolute leadership in enforcing fair trade principles and ask that you continue to stand up for the more than 1.2 million U.S. workers whose jobs depend on a strong and vibrant passenger airline industry.

Sincerely,

Doug Parker, CEO, American Airlines

Edward Bastian, CEO Delta Air Lines

Oscar Munoz, CEO, United Airlines

American Airlines opens line maintenance station at Houston’s George Bush Intercontinental Airport

American Airlines has announced it will open a new Line Maintenance station at Houston’s George Bush Intercontinental Airport (IAH) just in time for the summer peak season. The airline’s 29th Line Maintenance station will provide additional support for the increased maintenance needed to ready American’s aircraft for the busy summer travel season while also improving operational reliability and increasing the number of available aircraft to accommodate customers each morning.

Photo: American Airlines.

The newest Line Maintenance station — a more than $42 million investment — will be completed in three phases. In the first phase, which begins in May, American will secure temporary space at IAH and start recruiting aviation maintenance technicians (AMTs). In the second phase, which begins in June, additional maintenance work will be added, such as service checks and engine washes, as well as other maintenance work on aircraft that remain overnight. The third and final phase concludes in the first quarter of 2020 and will include renovated breakrooms, offices and toolbox storage spaces for AMTs.

“With an average of 38 daily departures at IAH, there are additional opportunities for us to perform maintenance on our aircraft, ultimately enabling us to provide a stellar travel experience for our customers and team members this summer,” said Kevin Brickner, Senior Vice President of Technical Operations for American. “On any given night, we have up to 10 aircraft that remain at IAH overnight, so this is a way to take advantage of our resources and invest in additional talent in order to improve our operations during one of our busiest times of the year.”

The Line Maintenance station at IAH will be staffed with approximately 46 AMTs and other support personnel who will perform maintenance on the carrier’s Boeing 737 and Airbus A319, A320 and A321 aircraft.

American cancels all Boeing 737-8 MAX 8 flights now through August 19

The following message was issued by American’s Chairman and CEO Doug Parker and President Robert Isom to American team members on Sunday, April 14:

Dear fellow team members,

As we prepare for summer, our focus is around planning for the busiest travel period of the year. Families everywhere are counting on American Airlines for their summer vacations, family reunions, trips to visit friends and adventures overseas. Our commitment to each other and to our customers is to operate the safest and most reliable operation in our history.

To further that mission, we have made the decision to extend our cancellations for the Boeing 737 MAX aircraft through August 19, 2019. Based upon our ongoing work with the Federal Aviation Administration (FAA) and Boeing, we are highly confident that the MAX will be recertified prior to this time. But by extending our cancellations through the summer, we can plan more reliably for the peak travel season and provide confidence to our customers and team members when it comes to their travel plans. Once the MAX is recertified, we anticipate bringing our MAX aircraft back on line as spares to supplement our operation as needed during the summer.

The planning team is working on this action now and in total, approximately 115 flights per day will be canceled through August 19. These 115 flights represent approximately 1.5 percent of American’s total flying each day this summer.

We remain confident that the impending software updates, along with the new training elements Boeing is developing for the MAX, will lead to recertification of the aircraft soon. We have been in continuous contact with the FAA, Department of Transportation (DOT), National Transportation Safety Board (NTSB), other regulatory authorities and are pleased with the progress so far.

Our Reservations and Sales teams will continue to work closely with customers to manage their travel plans, and we appreciate their outstanding efforts to care for our customers. Your professionalism and care for customers is second to none, and we thank you for all you do every day for our customers and for each other.

American to start the Philadelphia – Bologna route on June 6

American Airlines unveiled today at Bologna International Airport in Italy, the new route between the Philadelphia and Bologna, which will start on June 6, 2019.