American still losing millions daily

American still losing millions daily, Carty says
Dateline: Wednesday December 12, 2001

American Airlines still "is losing millions of dollars every day" and will report a "very, very big loss for the fourth quarter and full year," Chairman and CEO Don Carty told employees.

Carty said that although forward bookings through early Jan. "look promising," the airline is selling seats at "incredibly low prices" and load factors "aren't anywhere near what they need to be, even to break even."
American's position--and that of most US Major network airlines--actually may be worse than is generally recognized. The combination of capacity cuts without a corresponding reduction in fixed costs, new security costs and rock-bottom fares may have created a situation in which profitability simply is unattainable given current demand in the recessionary economy.

According to a recent report by Fitch, the industry's estimated breakeven load factor for the fourth quarter is 75%, up from 67% in the second quarter ended June 30. Fitch estimated American's fourth-quarter breakeven load factor at 85%, a figure that arguably is unachievable for more than a few days at a time even during periods of extreme demand. American's load factor in Nov. was 65.6% and in Oct. it was 59.6%.

And they still treat their customers like crap and don't care. Uncle will give them billions more.
Don't forget who let the hijackers on the planes....AA !!

We should not weep for American. Let them go broke. They deserve it. If they have a problem, it is not because of Dominicans, who subsidize all airline passengers with the lopsided ticket prices we pay. We pay more per flight miles than any other passengers in the world. We are AA profit guinea pigs.

TW

Thank God that "Sam",and"Jouquin" are "mounted-up",and will "soon" be here to save us all! Criss

Amen I travel once a month POP JFK. Cheaper to fly any place in Europe then POP JFK

Criss are you really from Streator ?

E-mail me
b

Why don,t you stay home if you can,t afford to travel? Criss

The DR has one of the highest if not the highest airport tax in the world. Maybe if they lowered it, the flights would be cheaper. Air Transat pays millions of US$ every year. It is their most expensive destination. I guess that's why it costs more to travel to the DR than to Europe. Result: Less tourists.