AA updates financial impact of MAX issue

[jimntx]

https://seekingalpha.com/news/3454920-american-airlines-updates-max-impact

"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,' noted CFO Derek Kerr on the Max situation."

 

[WeAAsles]

This is the part as an Employee that I’m focusing on.

• 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

https://www.google.com/amp/s/financ...n-airlines-group-reports-first-113000573.html

 

[WeAAsles]

https://www.google.com/amp/s/simple...mpensate-airlines-for-737-max-disruption/amp/

 

[swamt]

https://seekingalpha.com/news/3454920-american-airlines-updates-max-impact

"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,' noted CFO Derek Kerr on the Max situation."

I find it a bit odd that American lost 350 million just over the Max groundings as they say.
When SWA lost 200 million from not only the Max groundings but, the gov shut down, weather cancellations, maint. labor disruptions with mechanics as well as Max groundings. With SWA having 34 Max 8's and AA with 24 Max 8's Just doesn't add up to me, and we know that SWA gets more flights per a/c.
IMO SWA's lost should have been more than AA's. Something just not adding up.

American to take $350 million hit from 737 MAX, sees ungrounding this summer

 

[B737 driver]

I find it a bit odd that American lost 350 million just over the Max groundings as they say.
When SWA lost 200 million from not only the Max groundings but, the gov shut down, weather cancellations, maint. labor disruptions with mechanics as well as Max groundings. With SWA having 34 Max 8's and AA with 24 Max 8's Just doesn't add up to me, and we know that SWA gets more flights per a/c.
IMO SWA's lost should have been more than AA's. Something just not adding up.

American to take $350 million hit from 737 MAX, sees ungrounding this summer

Sounds like Parker fuzzy contract negotiations math.

 

[UPNAWAY]

SW loss was to that point or the qtr AA is projected through August.

 

[swamt]

SW loss was to that point or the qtr AA is projected through August.

Now that would make better sense and more in tune. I must have mistook the 350 million loss as for the Q2 reporting since that's when it was announced. My bad.

 

[Vortilon]

I find it a bit odd that American lost 350 million just over the Max groundings as they say.
When SWA lost 200 million from not only the Max groundings but, the gov shut down, weather cancellations, maint. labor disruptions with mechanics as well as Max groundings. With SWA having 34 Max 8's and AA with 24 Max 8's Just doesn't add up to me, and we know that SWA gets more flights per a/c.
IMO SWA's lost should have been more than AA's. Something just not adding up.

American to take $350 million hit from 737 MAX, sees ungrounding this summer

Then again SWA doesn't charge as much, and doesn't have first class.

 

[eolesen]

Then again SWA doesn't charge as much, and doesn't have first class.

This. WN's average loss per cancellation is going to be less than AA's.

I also suspect the incremental cost to AA for paying pilots and flight attendants who aren't flying is going to be considerably higher.