American Airlines June traffic down 8.1&%

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Barfbag

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Oct 30, 2006
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American Airlines June traffic down 8.1&%
— 09:13 AM ET 07/06/2009
NEW YORK -- AMR Corp.'s (AMR )




American Airlines said Monday its total June traffic fell 8.1% from a year ago to 10.9 billion revenue passenger miles. A revenue passenger mile is equal to one passenger flown one mile. Total June capacity fell 7.8% to 12.8 billion available seat miles from a year ago. Load factor, or the percentage of available seats filled with passengers, in June fell 0.3 points from last year to 85.1%

Sir Michael Bishop of BMI Airlines, the best way to make money in the airline industry was to leave it.
 
Well AA has nothing to worry about they made there cuts already and jet fuel is still cheap compared to a year ago....
 
Absolutely you nailed it exactly, its just another scare tactic that the sky is falling it all has to do with contract talks.
 
It's not paranoia as long as they really are out to get you.

Absolutely you nailed it exactly, its just another scare tactic that the sky is falling it all has to do with contract talks.

Uhh, yeah. Airlines issue press releases every month detailing monthly traffic to scare union members during contract talks.

The traffic decline isn't the real story. AA planned for the traffic decline by grounding aircraft and trimming the schedule. Unit revenue drops of 15% to 20% yoy are the real story.

AA took in at least $1.0 billion less in the second quarter than it did in the second quarter of 2008. Fuel is down, but still very expensive (relative to historical prices).
 
It's not paranoia as long as they really are out to get you.



Uhh, yeah. Airlines issue press releases every month detailing monthly traffic to scare union members during contract talks.


Uhhh, yeah....never seems to have a negative impact on executive compensation..
 
The topic is AA traffic. Please stick to it. Off-topic posts will be deleted without further warning.
 
Of course traffic is down. The airline has downsized. Also, full flights don't show increases so they can "play" with the numbers.


Are you kidding me? Seriously? Seriously?? I'm fairly new to this site and actually took some days off from my original posts because I could not believe how myopic and political most of the "traffic" is. So what is the answer to save my job and the company for the long term? "Playing" with traffic numbers on the front end, which is a ridiculous premise in the first place, has to spit out some revenue numbers on the back end - what are they? Exactly.
 
Think about the impact of this for a minute. If traffic is down by that much during "peak" travel season, what will this fall and winter look like? If AA and others can't generate enough cash to get them through the winter months... you know what happens.
 
Think about the impact of this for a minute. If traffic is down by that much during "peak" travel season, what will this fall and winter look like? If AA and others can't generate enough cash to get them through the winter months... you know what happens.


The fact is seasonal traffic like this should be expected to see the biggest declines because its discretionary travel,the type most likely to be cancelled in bad times because people dont have to go. The fact is the discretionary traveller is the least profitable one.

I fly pretty much every week, the flights are full. The traffic reduction is about the same as the capacity reduction.

My guess is the Fall and Winter will be around the same as this past year.

Schedules were actually decreased out of JFK for the Summer, with increases for the fall.
 
The fact is seasonal traffic like this should be expected to see the biggest declines because its discretionary travel,the type most likely to be cancelled in bad times because people dont have to go. The fact is the discretionary traveller is the least profitable one.

I fly pretty much every week, the flights are full. The traffic reduction is about the same as the capacity reduction.

My guess is the Fall and Winter will be around the same as this past year.

Schedules were actually decreased out of JFK for the Summer, with increases for the fall.

Bob, I'm amazed at you - you know better than to addle the office help with facts. That would seem to be a form of cruelty of some sort.

I've noticed the same relationship in capacity vs: traffic and don't really see it as a negative but what does bother me is the drawdown of available aircraft and, as much as I don't want to see it happen, a layoff of the troops. We all know that employment is driven by aircraft ASMs (not that the company has a clue how long is required to do given jobs nor the actual costs of same) and I'm beginning to wonder when the trap will be sprung, perhaps after further concessions are refused.

This is the same setup used by Carty and crew prior to the 2003 debacle - keep full employment for the union's financial benefit then say "Oh my God - we have to do something", triggering fear, concessions and the layoff we were told wouldn't happen because of the concessions.
 
Bob, I'm amazed at you - you know better than to addle the office help with facts. That would seem to be a form of cruelty of some sort.

I'm similarly amazed at Bob's ability to post irrelevant facts - you know, the facts that don't matter. Even funnier are the non-facts.

AA's problem isn't that a bunch of vacationers have canceled their summer travel plans. AA's problem is that thousands of First and Business seats on international flights have gone begging for the better part of a year now, and that unit revenue is down by double digit percentages for the first half of 2009 compared to 2008. For the second quarter, AA's mainline unit revenue is down between 16% and 17% yoy. Combined with less capacity and lower cargo revenue, that means that AMR's total revenue will be down by more than a billion dollars from last year's second quarter. Fuel is cheaper as well, but the revenue drop is steeper.

But keep on believing that because Bob's weekly domestic flights from NYC are "full," everything is coming up roses.
 
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