WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
uh, AA ADDED 14% capacity on the Pacific but traffic (paying passengers per mile) increased by 12% - and thus AA's Pacific LF fell by 1.4 points.He missed the one upside of 12% increase in the Pacific..
http://www.thestreet.com/story/12873007/1/why-american-airlines-aal-stock-is-falling-today.html?puc=yahoo&cm_ven=YAHOO
Given that we have discussed that the Pacific is heavily loss making and subsidized, it will not be a bright spot until traffic and revenues increase at a far faster rate than capacity is added.
back to the cargo discussion, The Port Authority of NY and NJ has released traffic statistics for June 2014 and, as I said was likely to happen, DL has passed AA as the largest cargo carrier at JFK, largely a result of AA's decision to remove 767s from the JFK transcon markets while DL added them.
Since FedEx and UPS' cargo operations in NYC are concentrated at EWR, DL actually carries the most cargo of the big 3 passenger carriers from the combined NYC airports.
DL is also the largest passenger carrier at both LGA and JFK and also the largest cargo carrier at LGA.
There may well be a lot of people who will argue that pulling the widebody aircraft from the JFK transcons was necessary but it clearly had a dramatic competitive effect in NYC that undoubtedly has translated into real revenue.
You have to wonder what AA's cargo numbers would look like if they still were carrying the transcon cargo they were a year ago.