AA Posts $431M 1st Qtr Loss, Announces Purchase of 2 more 777-300ER

Discussion in 'American Airlines | AAdvantage' started by DestinationDavid, Apr 20, 2011.  |  Print Topic

  1. DestinationDavid
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    Link to the full article here.

    Highlights:

    "American Airlines' parent company, AMR Corp., reported a first-quarter loss of $436 million, partly due to higher fuel costs."

    "American said it will reduce its system capacity plan by an incremental 1 percent in the fourth quarter and will retire at least 25 MD-80s this year. This is the second revision of its capacity growth plans which were initially slated for 4.3 percent this year."

    "Now, the airline is saying it will only grow capacity by about 2.2 percent with most of the added flights on international routes to China and Europe. With the announced revision, American's domestic capacity will be down 0.5 percent this year while international capacity will be up 6.2 percent compared to 2010. The carrier also said that it will purchase two more Boeing 777-300 ERs, for a total of five of the long-range aircraft now on order. These aircraft have a longer range than the Boeing 777 models American has in its fleet."

    "Consumers paid more for American tickets as the average fare rose by 6.2 percent compared to the same period last year. Unit revenues also grew 5.2 percent in the quarter which the company attributed to 'an improved fare environment and a recovering economy, as well as a more robust business travel market.' However, rising fuel costs are going to continue to hurt AMR's earnings through the rest of the year."
     
  2. JALPak
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    JALPak Gold Member

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    Nice any idea of when those 777-300ER's will be delivered?
     
  3. DestinationDavid
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    No idea. The first 2 that AA announced were listed with an expected delivery date of "late 2012". So it should be after that point......
     
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  4. JohnDeere19
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    Any idea of seating config?
     
  5. DestinationDavid
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    If they've announced the seating config, I haven't seen it and can't find it. Of course AA's current 777 offering is in the 2/5/2 config, and a consistent fleet/product might be attractive.

    I did an informal look at other airlines that currently fly the 777-300ER and their seat charts and.....

    Airlines that fly a 3/4/3 config:

    Air France (AF), Air New Zealand (NZ), Emirates (EK), KLM (KL), V Australia (VA)

    Airlines that fly a 3/3/3 config:

    Air Canada (AC), Air India (AI), ANA (NH), British Airways (BA), Cathay Pacific (CX), Etihad (EY), EVA (BR), JAL (JL), Jet Airways (9W), Korean Air (KE), Qatar (QR), Singapore Airlines (SQ), Turkish Airlines (TK)

    Seems OW airlines favor the 3/3/3 configuration. Economics might push AA toward the 3/4/3. Or history might push it to keep the 2/5/2.

    Guess we will see. :)
     
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  6. KimK
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    KimK Silver Member

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    The element that keeps me thinking is the impact of fuel prices on AA's ability to compete....would have been prudent to hedge where the price was last year given the middle east conflicts already brewing...wonder if any airline had gone that route?
     

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