ARC NEWS
US airlines sees record summer travel despite 737 Max grounding
May 22, 2019
Airlines for America predicts a whopping record 257.4 million passengers will fly on US airlines between the 1st of June and 31st of August while the Boeing 737 Max remains grounded. The MAX grounding took 200 daily flights out of service for the summer travel season. The group estimates the grounding results in a loss of 35,000 daily seats for the summer travel season. Airlines with 737 Max aircraft in storage are keeping passengers flying by rerouting flights and “lightly traveled routes” have been suspended, said US airlines chief economist John Heimlich on the 21st of May. If there is a prolonged grounding into late 2019 then airlines may pursue “deferring retirement of aircraft and acquiring used aircraft on the marketplace if needed”, Heimlich says.


American yet to realise US Airways merger benefits
May 22, 2019
American Airlines may have yet to realise the array of revenue benefits of its 2013 merger with US Airways, suggests Moody's Investors Service in a new report. "American's inferior operating margins imply that the company has yet to capture the operating benefits of the 2013 merger with US Airways," the rating agency said in a credit opinion on the 21st May. Moody's expects the Fort Worth, Texas-based carrier's operating margin to lag peers Delta Air Lines and United Airlines by at least 350 basis points in 2019, it says. It cites American's significantly smaller international network – it only represented roughly 27% of revenues in 2018, compared to around half at its competitors – among reasons for this discrepancy. American's pre-tax operating margin was 2.3% for the first quarter, its financial statements show. Delta reported a pre-tax operating margin of 9% and United 3.8%.


Dallas/Fort Worth commit to new 24-gate terminal
May 21, 2019
American Airlines is committing to further growth at its Dallas/Fort Worth base, signing an agreement with the airport for new terminal worth approximately $3.5 billion. The airline and airport will develop the up to 24-gate terminal F in the southwest corner of Dallas/Fort Worth's terminal complex under an agreement announced today. Design work will commence immediately with various layouts under evaluation - the facility has historically built semi-circular shaped terminals. - planning on opening in 2025. "DFW is American's largest hub and a central gateway to our extensive international and domestic network," says Doug Parker, chairman and chief executive of American, in a statement. "The plans we're announcing today will allow for the continued growth of DFW and ensure the airport remains a premier gateway for American for many more years to come."


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