Tuesday, March 1, 2011

American Airlines announces third 777-300ER order

American Airlines on Tuesday lowered its full-year 2011 consolidated capacity growth projection to 3.3% from 4.3% previously, and also revealed that it ordered a third Boeing 777-300ER in Februaryin addition to two it announced in January for delivery in late 2012.

In a presentation delivered by VP-Corporate Development and Treasurer Beverly Goulet to the JP Morgan Global High Yield & Leveraged Finance Conference in Miami, available on AA's website, the airline said "current trends" necessitate a pullback on 2011 capacity plans. "We are seeing significant industry fare increase activity, which has accelerated recently as fuel prices have increased," Goulet stated in the presentation.

Despite concerns about fuel prices, Goulet referenced a strong performance this year. January/February AA mainline and consolidated passenger unit revenue increased approximately 4.5% -5% versus the year-ago period, reflecting continued yield improvement, she said.

But the airline did suffer about $50 million in reduced revenue in the first two months of 2011 owing to severe winter weather in the US. Goulet noted that AA canceled more than 8,000 flights for weather-related reasons in the first 45 days of 2011. "We experienced more weather-related flight cancellations in the first half of February than in any full month of February over the past 10 years," she stated.

(Aaron Karp - ATWOnline News)

No comments: