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. On March 13, a directive from the Federal Aviation Administration (FAA) grounded all U.S.-registered Boeing 737 MAX aircraft. 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. This is the largest expansion of capacity at any hub in the U.S. 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. DFW 900Įarlier 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). 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. 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. Total third-quarter 2019 operating expenses were $11.1 billion, up 2% year over year. 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. Other revenue was down 4% to $708 million. Cargo revenue decreased 20% to $208 million due primarily to a 17% decrease in cargo ton miles. 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. Strong passenger demand drove a 3% year-over-year increase in third-quarter 2019 total revenue to a record $11.9 billion. Excluding net special items, net income was $630 million, or $1.42 per diluted share. 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. 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 “We are taking decisive action to correct this performance and are excited about our prospects for 2020 and beyond. These challenges affected our customers, our shareholders and our team members, who we thank for their hard work and perseverance.” Our third quarter was impacted by the continued grounding of the Boeing 737 MAX and the operational challenges resulting from ongoing labor contract negotiations. “However, we know that our results should have been better. ![]() “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. Returned $244 million to shareholders in the form of dividends and share repurchases in the third quarter.This marks the 12th consecutive quarter of TRASM growth. ![]() Also reported third-quarter total revenue per available seat mile (TRASM) of 15.71 cents, an increase of 2% year over year.
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