American Airlines may cut winter capacity if fuel prices remain high
American Airlines executives say the carrier could reduce its winter schedule if elevated jet fuel costs persist into the fourth quarter. The airline still plans network growth as part of a turnaround effort.
American Airlines may cut back its winter flying if jet fuel prices stay high through the fourth quarter, executives said at a Morgan Stanley investment conference on 16 September.
Chief executive Robert Isom said demand is still solid, especially for premium products, but higher fuel costs linked to continued conflict in the Middle East make planning uncertain. Chief financial officer Devin May said the airline would adjust December capacity in response to the current rise in fuel prices.
The comments came as American works through a turnaround plan aimed at closing a profitability gap with rival carriers. Executives cited large fleet investments, efforts to build indirect and corporate sales, and a push toward premium seating as levers for recovering market share. Isom said the airline would probably grow somewhat less in 2027 than it had originally intended.
About a quarter of fourth-quarter seats are already sold, executives said. Heavy forward bookings can limit an airline's ability to pass higher costs on through fares. Isom said revenue growth is the company's main opportunity while cost discipline remains in place.
Sources
- flightglobal.comAmerican may trim winter capacity if fuel costs stay high