After reporting a dismal quarter where the company lost $286 million, AMR Corporation announced they've ordered 460 new planes from Boeing and Airbus, which will come with more fuel efficient engines.
AMR ordered 200 from Boeing (NYSE:BA), with an option for 100 more, and 260 from Airbus, with an option for 365 more. American Airlines will acquire the planes over a five-year period.
At this time American Airlines is considered to have among the worst planes as far as mileage goes; the major reason for its poor performance.
AMR's Chairman and CEO Gerard Arpey said in a statement that American "expects to have the youngest and most fuel-efficient fleet among our peers in the U.S. industry within five years."
Even with higher revenue based on higher fees and fares, it wasn't enough to overcome the boost in American's fuel bill, which soared 33 percent in the quarter, rising over $547 million from the same quarter in 2010.
Much of this if because of the McDonnell Douglas MD-80 aircraft, one of the worst as far as fuel efficiency among aircraft. The over age of planes used by American Airlines at this time stands close to 15 years in age. They'll receive delivery of both planes in 2013.
In the short term this will mean the company will continue to struggle in a significant way.
In other news, AMR Corp. said they are going to spin off its American Eagle subsidiary as a separate company.
AMR was trading at $5.11, gaining $0.18, or 3.65 percent, as of 8:46 AM EDT. Boeing was trading at $70.53, level with the close on Tuesday.
Showing posts with label American Airlines. Show all posts
Showing posts with label American Airlines. Show all posts
Wednesday, July 20, 2011
Wednesday, March 30, 2011
American (AMR) Drops Two U.S.-Japan Flights on Low Demand
American Airlines (NYSE:AMR) announced it has suspended two of its daily flights to Japan as demand continues to fall in light of the earthquake in the country.
The airline said it will drop a daily flight from New York’s John F. Kennedy International to Tokyo’s Haneda airport and one of two daily trips from Dallas-Fort Worth International to Narita, according to American spokesman Ed Martelle. “It’s purely due to passenger demand,” he said.
Competitor Delta Air Lines Inc. (NYSE:DAL) has already dropped service to Haneda, although they continue to serve Narita, which is a spoke for overseas travel.
“Our scheduling people believe the situation will be stabilizing, but we’ll continue to monitor the situation and make whatever changes we have to make,” Martelle noted.
American Airlines was trading at $6.84, up $0.26, or 3.95 percent, as of 2:05 PM EDT.
The airline said it will drop a daily flight from New York’s John F. Kennedy International to Tokyo’s Haneda airport and one of two daily trips from Dallas-Fort Worth International to Narita, according to American spokesman Ed Martelle. “It’s purely due to passenger demand,” he said.
Competitor Delta Air Lines Inc. (NYSE:DAL) has already dropped service to Haneda, although they continue to serve Narita, which is a spoke for overseas travel.
“Our scheduling people believe the situation will be stabilizing, but we’ll continue to monitor the situation and make whatever changes we have to make,” Martelle noted.
American Airlines was trading at $6.84, up $0.26, or 3.95 percent, as of 2:05 PM EDT.
Wednesday, December 22, 2010
American Airlines (NYSE:AMR) Drops Orbitz American Airlines (NYSE:AMR) Drops Orbitz (NYSE:OWW) Travel Website
Customers of American Airlines (NYSE:AMR) will no longer be able to use Orbitz (NYSE:OWW) travel website as a means of securing tickets for traveling with the airline, but existing tickets held by consumers will be honored, said the airline.
American Airlines also won't sell tickets via Orbitz for Business site either.
The reasoning behind it is the way Orbitz draws information concerning flights. American Airlines wanted them to extract the information directly from them so they wouldn't have to pay extra fees to global distribution companies.
That would allow American to slash costs and to customize offers to its customers, including car rentals and hotel accommodations.
American's vice president for sales, Derek DeCross, said they must be "free to customize its product offerings to improve the customer experience as well as distribute its products in a way that does not result in unnecessary costs."
AMR closed Tuesday at $8.05, up $0.14, or 1.77 percent.
American Airlines also won't sell tickets via Orbitz for Business site either.
The reasoning behind it is the way Orbitz draws information concerning flights. American Airlines wanted them to extract the information directly from them so they wouldn't have to pay extra fees to global distribution companies.
That would allow American to slash costs and to customize offers to its customers, including car rentals and hotel accommodations.
American's vice president for sales, Derek DeCross, said they must be "free to customize its product offerings to improve the customer experience as well as distribute its products in a way that does not result in unnecessary costs."
AMR closed Tuesday at $8.05, up $0.14, or 1.77 percent.
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