Tag Archives: American Airlines

American adds MAX 8 service between Los Angeles and Washington Reagan

American Airlines Boeing 737-8 MAX 8 N308RD (msn 44446) MIA (Bruce Drum). Image: 104586.

American Airlines will add Boeing 737-8 MAX 8 service between Los Angeles and Washington (Reagan National) starting on September 5, 2018. The route will operate daily according to Airline Route.

Copyright Photo: American Airlines Boeing 737-8 MAX 8 N308RD (msn 44446) MIA (Bruce Drum). Image: 104586.

American Airlines aircraft slide show (Boeing):

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American to add eight new domestic routes

American Airlines Airbus A319-115 WL N9021H (msn 6277) MIA (Jay Selman). Image: 403757.

American Airlines is adding eight new mainline and American Eagle routes from Dallas/Fort Worth, Miami and New York (LaGuardia):

According to Airline Route, the carrier will add from:

Dallas/Fort Worth to:

Buffalo (A319, daily effective December 19, 2018)

Del Rio (Envoy Air, daily effective November 4, 2018)

Sarasota/Bradenton (SkyWest, effective December 19, 2018)

Wilmington, NC (Mesa, daily effective December 19, 2018)

Miami to:

Greensboro (Envoy Air, daily effective November 4, 2018)

Knoxville (Envoy Air, effective December 19, 2018)

New York (LaGuardia) to:

Charleston, SC (Republic, twice-weekly effective November 4, 2018)

Savannah (Republic, twice-weekly effective November 4, 2018)

Copyright Photo: American Airlines Airbus A319-115 WL N9021H (msn 6277) MIA (Jay Selman). Image: 403757.

American Airlines aircraft slide show (Airbus):

American Airlines applauds ratification of U.S.-Brazil open skies agreement

American Airlines Boeing 777-223 ER N791AN (msn 30254) (Oneworld) AMS (Ton Jochems). Image: 941955.

American Airlines applauds the United States and Brazilian governments for finalizing an Open Skies agreement that will allow for increased air service between the two countries.

“We applaud the U.S. Departments of State and Transportation and the Brazilian Ministry of Transport for taking this important step to enhance the U.S.-Brazil aviation relationship,” said Nate Gatten, American’s senior vice president – Government Affairs. “We commend Secretary Pompeo, Secretary Chao and their teams for their leadership and commitment to finalizing this agreement. As the leading U.S. carrier in Latin America, American has long advocated for an Open Skies policy between the U.S. and Brazil. This agreement will strengthen economic ties between the U.S. and Brazil and deliver significant benefits for consumers.

U.S.-Brazil Open Skies will pave the way for the U.S. Department of Transportation to approve American’s proposed joint business with LATAM Airlines Group. The American-LATAM joint business, which was announced in January 2016, will cover all travel between the U.S. and Canada and Brazil, Chile, Colombia, Paraguay, Peru and Uruguay.

The joint business will give customers an improved route network with increased connectivity and capacity, access to lower fares, and a seamless travel experience between American and LATAM flights. The joint business previously received regulatory approval from Brazil in October 2017, Colombia in May 2017 and Uruguay in November 2016.

American has proudly served Brazil for 28 years and has more flights between the U.S. and Brazil than any other carrier. American has nearly 600 team members in Brazil and more than 70 weekly flights to Rio de Janeiro (GIG), Sao Paulo (GRU), Manaus (MAO), Belo Horizonte (CNF) and Brasilia (BSB) from American’s hubs in Miami (MIA), Dallas/Fort Worth (DFW), New York (JFK) and Los Angeles (LAX).

Copyright Photo: American Airlines Boeing 777-223 ER N791AN (msn 30254) (Oneworld) AMS (Ton Jochems). Image: 941955.

American Airlines aircraft slide show (Boeing):

American Airlines announces changes to emotional support animal policy

American Airlines has announced changes to its emotional support animal policy. In the latest episode of Tell Me Why, American’s vodcast series for team members that shares the “why” behind the decisions we make, Albert Rizzi, founder and chief executive officer of My Blind Spot, Inc., talks about working with Suzanne Boda, American’s Senior Vice President, Los Angeles, to develop these changes. He also discusses how we support our customers who have disabilities and what we’ve done to ensure we make decisions that maximize both inclusiveness and safety.

You can watch Tell Me Why and read more about the emotional support animal policy changes below. You can also download Tell Me Why as a podcast from iTunes or Google Play.

5 Things You Should Know

  1. We support the rights of customers, from veterans to people with disabilities, with legitimate needs for a trained service or support animal. Unfortunately, untrained animals can lead to safety issues for our team, our customers and working dogs onboard our aircraft.
  2. American, like other airlines, has experienced an increase in customers who are transporting a service or support animal onboard our aircraft — more than 40 percent from 2016 to 2017.
  3. Prior to enacting these changes to our animal policy, which will become effective July 1, American met with a number of disability groups to get their input, including American Association of People with Disabilities, Paralyzed Veterans of America, American Council for the Blind and My Blind Spot. At American, we want to have policies and procedures in place that protect our team members and our customers who have a real need for a trained service or support animal. We appreciate the dialogue and partnership we have with these organizations.
  4. Some of the changes include additional restrictions on animal types, including insects, hedgehogs and goats. American will now enforce the existing 48-hour advanced notice and pre-clearance policy for emotional support animals, but will have procedures in place for emergency travel booked within 48 hours of departure.
  5. Details regarding our policies are available here.

Photo: American Airlines.

American Airlines celebrates the opening of five new gates at Chicago O’Hare

American Airlines celebrated the opening of five new gates at its hub at Chicago O’Hare International Airport (ORD) on May 11, the first new gates to be constructed at the airport in 25 years. Chicago Mayor Rahm Emanuel joined CEO Doug Parker; Franco Tedeschi, vice president — ORD Hub Operations; Ginger Evans, commissioner — Chicago Department of Aviation; and ORD team members for a ribbon cutting ceremony to mark the opening of what is known as the L-Stinger.

The $78 million construction project was completed on time over the span of 20 months. With the additional gate capacity, American is flying more seats out of Chicago this summer than at any point in the last 10 years. Just last week American inaugurated new service from Chicago to Venice, Italy (VCE), and Vancouver, British Columbia (YVR).

“Today marks a historic moment for O’Hare as we open the airport’s first new gates in 25 years,” said Mayor Emanuel. “I want to thank American Airlines for recognizing the value of this investment and look forward to working with all of our airline partners as we begin moving forward on our transformational plan that represents a watershed moment for O’Hare and Chicago’s economic future.”

The new gates are the latest in American’s investment in ORD, including a new Flagship Lounge and renovated Admirals Club lounges, and later this year, a new hangar and ground equipment maintenance facility.

All images by American Airlines.

American to introduce routes to the Caribbean and Hawaii

American Airlines Boeing 777-323 ER N732AN (msn 31549) PAE (Nick Dean). Image: 941261.

American Airlines customers will have new options to escape the cold with more seasonal and year-round flights to the Caribbean and Hawaii starting this winter. An overview of these new flights is as follows:

  • From ORD: Daily winter seasonal service to HNL and four new routes to the Caribbean: AUA, GCM, NAS, PLS
  • From MIA: Seven additional daily frequencies to the Caribbean and one new route to the Caribbean: BGI, CUR, FPO, POP, POS, SDQ, UVF and new route SVD
  • From CLT: Two new routes to the Caribbean: ELH, MHH
  • From DFW: One new route to the Caribbean: AUA

Additionally, American will move one of its Miami International Airport (MIA)–London Heathrow Airport (LHR) flights and instead operate a Dallas Fort Worth International Airport (DFW)–LHR frequency. Through its Atlantic Joint Business, British Airways will add a third frequency between MIA and LHR.

Finally, American will seek a dormancy waiver from the U.S. Department of Transportation to discontinue its service between Chicago O’Hare International Airport (ORD) and Beijing Capital International Airport (PEK). The airline also announced it plans to remove the nonstop ORD–PEK service from its schedule in October.

Caribbean and Hawaii

American is the first U.S. carrier to serve St. Vincent and the Grenadines (SVD) with the introduction of year-round Saturday service from MIA. American’s sun-seeking customers will also have more opportunities to reach their favorite Caribbean destinations, including new flights to Aruba (AUA) from ORD and DFW; to Grand Cayman, Cayman Islands (GCM); Nassau, The Bahamas (NAS); and Providenciales, Turks and Caicos (PLS) from ORD. Customers will also gain new access to Eleuthera (ELH) and Marsh Harbour (MHH) in The Bahamas from Charlotte Douglas International Airport (CLT). In addition, American will add an extra frequency from MIA to seven Caribbean destinations it currently serves today.

Beginning this winter, American will also introduce new winter seasonal nonstop service to Honolulu (HNL) from ORD on a Boeing 787-8.

New Routes

Route Aircraft On Sale Flights Begin Frequency Season
ORD–HNL Boeing 787-8 May 7 Dec. 19 Daily Winter
CLT–ELH Bombardier CRJ-700 May 14 Dec. 22 Saturdays Year-round
CLT–MHH Embraer E175 May 14 Dec. 22 Saturdays Year-round
DFW–AUA Boeing 737-800 May 14 Dec. 22 Saturdays Year-round
MIA–SVD Airbus A319 May 14* Dec. 22 Saturdays Year-round
ORD–AUA Boeing 737-800 May 14 Dec. 22 Saturdays Winter
ORD–GCM Boeing 737-800 May 14 Dec. 22 Saturdays Winter
ORD–NAS Boeing 737-800 May 14 Dec. 22 Saturdays Winter
ORD–PLS Boeing 737-800 May 14 Dec. 22 Saturdays Winter

*Subject to change

New Frequencies

Route Aircraft On Sale Flights Begin Pattern Season
MIA–BGI Boeing 737-800 May 14 Dec. 19 Daily Winter
MIA–CUR Boeing 737-800 May 14 Dec. 19 Daily Winter
MIA–FPO Embraer E175 May 14 Dec. 19 Daily Winter
MIA–POP Boeing 737-800 May 14 Dec. 19 Daily Winter
MIA–POS Boeing 737 MAX 8 May 14 Dec. 19 Daily Winter
MIA–SDQ Airbus A321 May 14 Dec. 19 Daily Winter
MIA–UVF Boeing 757 May 14 Dec. 19 Daily Winter

London

American and joint business partner British Airways together will provide more capacity to their LHR hub from American’s hubs at DFW and MIA. Beginning Oct. 28, American will move one of its two MIA–LHR flights to DFW–LHR using a Boeing 777-300ER, and British Airways will add its third MIA–LHR frequency using a Boeing 747-400.

“Customers across Europe will benefit from larger-capacity aircraft between LHR and MIA, and the DFW–LHR frequency will continue to provide great connecting opportunities through American’s centrally located hub,” said Vasu Raja, Vice President of Network & Schedule Planning. “By better leveraging the networks of our joint business partners we are laying the foundation for American to grow its long-haul international network more profitably in the years ahead.”

Simon Brooks, British Airways’ Senior Vice President of Sales for North America, said, “We are thrilled to have this partnership with American Airlines for over seven years now. We continually work with our joint business partners to ensure customers have the best travel experience, and this schedule change delivers on our promise to provide more options.”

Customers will continue to choose to fly on either American or British Airways through codeshare on all DFW–LHR and MIA–LHR flights as part of the joint business.

New Frequencies

Route Carrier Aircraft On Sale Flights Begin
MIA–LHR BA Boeing 747-400 May 14 Oct. 28
DFW–LHR AA Boeing 777-300 May 14 Oct. 28

Asia

American will seek a dormancy waiver from the U.S. Department of Transportation for its service between ORD and PEK, and plans to remove the nonstop ORD–PEK service from its schedule in October. The last westbound flight will be Oct. 20 and the last eastbound flight will be Oct. 22. Customers already holding reservations after these dates will be reaccommodated on other flights, and can continue to reach PEK through American’s hubs at DFW and Los Angeles International Airport (LAX). American intends to seek access to operate services at Beijing’s new international airport when it opens next year.

“American is operating more seats from Chicago this summer than in the past 10 years, and we are excited to continue to grow in this important hub,” said Raja. “However the current fare environment severely limits our ability to successfully compete between Chicago and Beijing. We remain committed to China and anticipate that moving to the new Beijing airport in the future will improve the viability of the route through the additional connectivity in conjunction with our codeshare relationship with China Southern in the long run.”

Copyright Photo: American Airlines Boeing 777-323 ER N732AN (msn 31549) PAE (Nick Dean). Image: 941261.

American Airlines aircraft slide show:

American Airlines Group reports its first quarter results

American Airlines Boeing 737-800 WL N315PE (msn 31261) MIA (Jay Selman). Image: 403713.

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

  • Reported a first-quarter 2018 pre-tax profit of $273 million, or $468 million excluding net special items1, and a first-quarter net profit of $186 million, or $357 million excluding net special items
  • First-quarter 2018 earnings were $0.39 per diluted share, or $0.75 per diluted share excluding net special items
  • 2017 earnings were $3.90 per diluted share, or $4.88 per diluted share excluding net special items. Fourth-quarter earnings were $0.54 per diluted share, or $0.95 per diluted share excluding net special items
  • Returned $498 million to shareholders, including the repurchase of 8.4 million shares and dividend payments of $48 million. Announced a new $2.0 billion share repurchase authorization2 to be completed by December 31, 2020

“American’s team members continue to deliver solid results, including record first quarter revenue performance. Higher fuel prices led to a decline in year-over-year earnings, but we are excited about the future,” said Chairman and CEO Doug Parker. “With the youngest fleet in the industry among our large network peer competitors, a significantly improved product, and a team of 130,000 who demonstrate extraordinary care for our customers, we are well positioned for long-term success.”

First-Quarter Revenue and Expenses

Pre-tax earnings excluding net special items for the first quarter of 2018 were $468 million, a $193 million decrease from the first quarter of 2017.

GAAP Non-GAAP 1
1Q18
1Q17
1Q18
1Q17
Total operating revenues ($ mil) $  10,401 $   9,820 $  10,401 $   9,820
Total operating expenses ($ mil)   9,970   9,083   9,775   8,962
Operating income ($ mil)   431   737   626   858
Pre-tax income ($ mil)   273   535   468   661
Pre-tax margin 2.6 % 5.4 % 4.5 % 6.7 %
Net income ($ mil)   186   340   357   414
Earnings per diluted share $   0.39 $   0.67 $   0.75 $   0.82

 

Robust demand for air travel drove a 5.9 percent year-over-year increase in first-quarter 2018 total revenue, to a first quarter record $10.4 billion. Passenger revenue per available seat mile (PRASM) grew in all geographic regions, with notable strength in Latin America. Cargo revenue was up 18.8 percent to $227 million due primarily to a 10.9 percent increase in volume and a 7.1 percent increase in cargo yield. Other revenue was up 10.0 percent to $694 million. First-quarter total revenue per available seat mile increased by 3.5 percent compared to the first quarter 2017 on a 2.3 percent increase in total available seat miles. This marks the sixth consecutive quarter of positive unit revenue growth and the second quarter in a row where all geographic regions showed PRASM growth on a year-over-year basis.

Total first-quarter 2018 operating expenses were $10.0 billion, up 9.8 percent year-over-year driven by a 25.7 percent increase in consolidated fuel expense. Had fuel prices remained unchanged versus the first quarter 2017, total expenses would have been $412 million lower. Total first-quarter 2018 cost per available seat mile (CASM) was 15.15 cents, up 7.3 percent from first-quarter 2017. Excluding fuel and special items, total first-quarter CASM was 11.57 cents, up 2.8 percent year-over-year.

“We made significant progress on several key initiatives during the first quarter, including fleet simplification and adding more travel options for customers by expanding Basic Economy,” said President Robert Isom.

“Our recently announced order for 47 Boeing 787s enables the retirement of older aircraft, including the Airbus A330-300, the Boeing 767, and certain Boeing 777-200s. These replacement aircraft will provide improved fuel efficiency, lower maintenance costs, greater range, and an enhanced customer experience.

“In April, we launched trans-Atlantic Basic Economy together with our Atlantic partners. Basic Economy is now rolled out in the U.S. and certain markets in Mexico and the Caribbean. We continue to look for more opportunities to launch this popular travel option for our customers,” Isom said.

Strategic Objectives

American Airlines is focused on four long-term strategic objectives: Create a World-Class Customer Experience, Make Culture a Competitive Advantage, Ensure Long-Term Financial Strength, and Think Forward, Lead Forward.

Create a World-Class Customer Experience

American is committed to delivering a world-class product by creating value and building trust with customers, driving operational excellence, and strengthening its network, especially where the company has a competitive advantage. During the first quarter, American:

  • Filed an application along with Qantas to the U.S. Department of Transportation seeking approval to form a joint business to better serve customers flying between North America and Australia and New Zealand. The proposed joint business will significantly improve service and stimulate demand, and is expected to unlock more than $300 million annually in consumer benefits that are not achievable through any other form of cooperation
  • Enhanced the travel experience between New York LaGuardia and Chicago for business customers by adding that route to the company’s shuttle portfolio. The shuttle is highly valued by top business customers and offers an hourly schedule and dedicated gates and check-in areas
  • Expanded Basic Economy to its first trans-Atlantic routes on April 11, including Dallas/Fort Worth-London Heathrow, giving customers a new option for American’s lowest fares in partnership with American’s Atlantic joint business partners
  • Introduced new wine sommelier Bobby Stuckey to lead American’s wine program, selecting premium wines for customers to enjoy in Admirals Club lounges, Flagship Lounges, Flagship First Dining and in flight
  • Introduced new meals on certain Pacific flights. Japan Airlines’ Chef Jun Kurogi has designed a traditional Japanese meal in premium cabins on flights from Tokyo, and Chef Sean Connolly has designed dishes for premium cabins on flights from Auckland and Sydney

Make Culture a Competitive Advantage

American is creating an environment that cares for frontline team members, provides competitive pay, and equips its team with the right tools to support its customers. During the first quarter, American:

  • Hosted 7,000 American Airlines leaders at its Annual Leadership Conference in Dallas. Team members who oversee people spent a full day learning about American’s four strategic objectives and how to implement them in partnership with their teams
  • Honored 103 team members at the company’s Annual Chairman’s Award celebration in Dallas earlier this month. The Chairman’s Award is the airline’s highest recognition, and recipients this year were recognized for accomplishments including making complicated maintenance tasks easier and safer, caring for colleagues during personal tragedies, and making customers feel like family
  • Accrued $29 million for the company’s 2018 profit sharing program during the quarter
  • Completed the transition to a new cloud-based HR information system which provides seamless integration of team member data and hiring, onboarding, compensation and performance-related tasks. In April, American also implemented a new payroll system for U.S.-based management and support staff, with the remaining team members to transition on a phased basis

Ensure Long-Term Financial Strength

American is focused on capturing the efficiencies created by the merger, delivering on its earnings potential, and creating value for its owners. In the first quarter, American:

  • Returned $498 million to shareholders through share repurchases and dividends, bringing the total since mid-2014 to $11.9 billion. These repurchases have reduced the share count by 38 percent to 467.4 million shares as of March 31, 2018
  • In April, announced an order for 47 new Boeing 787 widebody aircraft consisting of 22 787-8s scheduled to begin arriving in 2020 and 25 787-9s scheduled to begin arriving in 2023. The 787-8s will replace American’s Boeing 767-300s, while later 787-9 deliveries will replace Airbus A330-300s and older 777-200 widebody aircraft. In addition, American deferred 40 737 MAX aircraft and 3 Airbus A321neo aircraft. These changes better align future aircraft deliveries with planned aircraft retirements and reduce planned capital expenditures by approximately $200 million in 2019 and $800 million in 2020
  • On April 26, 2018 declared a dividend of $0.10 per share, to be paid on May 22, 2018, to stockholders of record as of May 8, 2018

Think Forward, Lead Forward

American is committed to re-establishing itself as an industry leader by creating an action-oriented culture that moves quickly to bring products to market, embraces technological change, and quickly seizes upon new opportunities for its network and product. In the first quarter, American:

  • Reached a new lease agreement with the city of Chicago that clears the way for an $8.5 billion redevelopment plan at O’Hare that includes more gates, a better structure for connecting travelers, and a better overall customer experience that will help close the competitive gate gap there
  • Reached an agreement earlier this month to get access to 15 additional gates in DFW Terminal E. This allows the company to significantly grow departures at its largest hub to more than 900 per day, enabling more customers to access our global network
  • Completed all customer-facing renovations in Terminal B, where American’s regional operation at Dallas/Fort Worth is located
  • In April, opened five new gates at Chicago O’Hare Terminal 3, permitting American to provide improved service to its customers at this key competitive hub

Guidance and Investor Update

American expects its second-quarter 2018 TRASM to increase approximately 1.5 to 3.5 percent year-over-year, which reflects expected continued strength in demand for both business and leisure travel. The company also expects its second-quarter 2018 pre-tax margin excluding special items to be between 7.5 and 9.5 percent.3 Due to higher fuel prices included in the guidance provided today, American now expects its 2018 diluted earnings per share excluding net special items to be between $5.00 and $6.00.3

Notes

  1. In the first quarter, the company recognized $195 million in net special items before the effect of income taxes. First quarter special items principally included $82 million of fleet restructuring expenses and $59 million of merger integration expenses. 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.
  2. Share repurchases under the buyback program 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 program does not obligate the company to repurchase any specific number of shares or continue a dividend for any fixed period, and may be suspended at any time at the company’s discretion.
  3. 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.

Copyright Photo: American Airlines Boeing 737-800 WL N315PE (msn 31261) MIA (Jay Selman). Image: 403713.

American Airlines aircraft slide show (Boeing):