News

American Airlines hit by decline in international markets

Fourth-quarter revenue at American Airlines will be down as traffic declined in some international markets.


The carrier narrowed its expectation for pre-tax margin, excluding special items, to 10%/11% from an earlier projection of as much as 12%.


American’s traffic, or miles flown by paying passengers, slipped 7.4% across the Atlantic and 6.2% on routes to Latin America in December, while US domestic traffic edged up by 0.5% year on year. Pacific traffic, which represents smaller overall numbers, rose by 24.4%


The passenger load factor for the month was down 3.4 percentage points to 80.4%.


Annual traffic across the Atlantic was down by 1.3% over 2013 levels while overall international numbers remained static.


Fourth-quarter revenue from each seat flown a mile, an indicator of traffic and fares, is expected to be be unchanged to down 2%, American said.


The airline’s shares fell 4.7% at $49.58, the biggest decline since December 16, according to data compiled by Bloomberg. Before yesterday, they had risen 77% over the past year.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.