Can AA Revenue Gains Combat Merger?

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June 19, 2012

Once again, bankrupt American is outpacing the airline industry in terms of unit revenue gains.

The carrier reported Friday that its passenger revenue per available seat mile in May rose 7.3%, the biggest gain among the five major carriers who have so far reported May PRASM.

American’s May outperformance follows the industry’s second biggest gain in the first quarter and the biggest gain in April. American, battling a takeover bid by US Airways, has trumpeted its unit revenue gains in order to make the point that it can successfully compete on its own.
Strength in Latin America, a continuing gradual improvement in benefits from a trans-Atlantic joint venture with European partners and elimination of unprofitable flying are all considered to be factors in American’s RASM gains.

The May improvement was driven “by a strong yield environment and increased international load factors,” American said in a prepared statement. “We outperformed the industry in April and our strong momentum is continuing,” said spokesman Sean Collins.

During the first quarter, American reported a 10.3% PRASM gain, trailing onlyDelta’s 11% gain. In April, American reported an 11.6% gain, the highest.

Complete Article & Source: http://www.thestreet.com/story/11574701/1/amr-combats-merger-with-improved-revenue.html

June 19, 2012 , , , Airlines,Blog 2 Comments

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