AMR says revenue measurement fell in 2Q

[FA Mikey]

American Airlines said Thursday that its revenue per capacity fell between 16 and 17 percent in the second quarter compared with a year earlier.

The decline was slightly larger, between 16.2 and 17.2 percent, when including regional operations of parent AMR Corp., the company said in a regulatory filing.

The decline in revenue per available seat mile underscored the difficulty airlines are facing. Traffic is falling, and air fares are at relatively low levels historically.

Fort Worth-based AMR said it expected to end the second quarter on June 30 with more than $2.8 billion in unrestricted cash and short-term investments. That cash cushion is virtually unchanged from the end of the first quarter.


full article here

 

[Bob Owens]

American Airlines said Thursday that its revenue per capacity fell between 16 and 17 percent in the second quarter compared with a year earlier.

The decline was slightly larger, between 16.2 and 17.2 percent, when including regional operations of parent AMR Corp., the company said in a regulatory filing.

The decline in revenue per available seat mile underscored the difficulty airlines are facing. Traffic is falling, and air fares are at relatively low levels historically.

Fort Worth-based AMR said it expected to end the second quarter on June 30 with more than $2.8 billion in unrestricted cash and short-term investments. That cash cushion is virtually unchanged from the end of the first quarter.


full article here

From the ATA Newswire, Remember the ATA is to the Airlines what the NRA is to Gun Owners.

American Airlines says unit revenue could slide 16% to 17% this quarter, though the losses will be offset by a 21.5% drop in unit costs. Thanks largely to lower fuel prices, American's cost per available seat mile has fallen from 15.8 cents to 12.4 cents on a year-over-year basis. The Dallas Morning News <http://r.smartbrief.com/resp/qKoYzCyffjkavbCicefOCicNcajK?format=standard> (6/18) , Forbes/The Associated Press <http://r.smartbrief.com/resp/qKoYzCyffjkavcCicefOCicNeeRL?format=standard> (6/18)

 

[FrequentFlierCA]

The same numbers and percentages are coming from the individual airlines. Doom and gloom is the flavor of the year for 2009 in the airline industry.

Bob, what happened to all those billions AMR was supposed to have? Even its cash pile is dwindling fast.

 

[jersey777]

I have tried to have a friend come visit from DFW to New York this weekend....every flight is packed. WE had to cancel the visit. All my Europe flights are packed. How frustrating it is to see us not make money with full airplanes!!

 

[eolesen]

What do you expect when the price of a ticket this year is at least 20-40% less than it was a year ago?

Bought an unrestricted round trip to France last month for under $3500. Same ticket a year ago was $5500. Two months ago, you could get round trips to Europe where the taxes exceeded the fare.

Pricing is the one thing AA can't control -- that pleasure goes to the guys who outsource everything and have 100% employee turnover every three years.

 

[frontline]

That's true. On domestic we lost pricing power long ago. Hasn't affected international as badly, but eolesen's example is a scary one. Airfares are just about the only inflation-proof thing out there. Real fares are less now than they were at deregulation.

And the cash continues to dwindle...