AMR Reports Another Month of Passenger Revenue Growth

[FA Mikey]

American Airlines parent AMR reported on Tuesday stronger August consolidated passenger revenues despite lower capacity and flat traffic.
The company posted a 4.1% year-over-year increase in consolidated passenger revenues per available seat mile, building on revenue growth from the last several months.
Consolidated traffic rose by 0.1% to 12.35 billion revenue passenger miles from 12.34 billion a year ago, while consolidated capacity fell by 1.5% to 14.4 billion available seat miles from 14.62 billion in 2011.

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[FWAAA]

AA's unit revenue increase just about matches that at Delta, while US reported a meager 1% increase in PRASM compared to Aug 2011.

UA's troubles continue, as UA reported that unit revenue decreased by 0.5% to 1.5% in August compared to the same month in 2011. UA's inability to right its ship since its March 3 computer system debacle is showing up in its monthly unit revenue numbers.

http://finance.yahoo.com/news/united-reports-august-2012-operational-234500386.html

 

[WorldTraveler]

that is correct, but don't be surprised if those numbers for AA take a sudden turn downward.
As much as some people don't want to admit it, AA's operational reliability now is as bad or worse than it has been for UA. AA is cancelling 4-5% of its flights on a consistent basis and AA's OT is 15-20% lower than its other network peers.
IN the meantime, UA's operational performance has improved.

It takes very little time for the pendulum to swing in this industry.

 

[Bob Owens]

AA's unit revenue increase just about matches that at Delta, while US reported a meager 1% increase in PRASM compared to Aug 2011.

UA's troubles continue, as UA reported that unit revenue decreased by 0.5% to 1.5% in August compared to the same month in 2011. UA's inability to right its ship since its March 3 computer system debacle is showing up in its monthly unit revenue numbers.

http://finance.yahoo.com/news/united-reports-august-2012-operational-234500386.html

UA and US are both in negotiations. How convienient.

 

[whatajoke]

Bob your theory sucks. you probably flunked kinder-garden or was it pre-k.

 

[BoeingBoy]

that is correct, but don't be surprised if those numbers for AA take a sudden turn downward.

All the legacies are facing the same problem - more difficult comparables - just at slightly different times (US mentioned it as a 2nd half event in the 1st quarter earnings conference call). Last year there were 10-12 general fare increases that stuck while there have only been 4-5 this year. Fares going up faster last year equals tougher comparables as this year progresses.

I'd expect AA to have a better comparible in December - the first month of the bankruptcy last year probably caused some booking away which would be the comparible measured against this year (or in early Jan when Dec 2012 numbers are released). AA will possibly also be looking at reduced capacity, which would help by increasing LF this year.

Jim