Record July Numbers

[Hope777]

– American Airlines Group, including American Airlines, US Airways and its owned and contracted regional partners, said Tuesday it had the highest monthly traffic in its history in July with 21.8 billion revenue passenger miles.
Mainline American Airlines and US Airways reported that its traffic excluding regional carriers was 19.6 billion RPMS, up 4.4 percent, on a 1.7 percent increase in capacity. Load factor jumped 2.3 percentage points to 87.8 percent.
 
http://aviationblog.dallasnews.com/2015/08/american-airlines-southwest-airlines-set-records-with-july-traffic.html/

 

[robbedagain]

Great news there    but im sure someone be here to disapprove of the facts     really great

 

[WorldTraveler]

there is nothing to disapprove, robbed. Traffic for July was clearly strong. Load factor grew in all regions.

AA had strong traffic.

Their guidance for the current quarter is as follows:

The Company continues to expect its third quarter 2015 consolidated passenger revenue per available seat mile (PRASM) to be down approximately six to eight percent year-over-year. In addition, the Company continues to expect its third quarter pretax margin excluding special items to be between 16 and 18 percent.

since this press release came out as fuel prices were dropping further today and we are midway in the 3rd quarter, AA's margin could expand.

 

[Hope777]

Clearly AA Mainline had the Best July of the Big 3.
 
AA RPMS up 4.4% on ASMS up only 1.7% = 2.7% Increase
DL RPMS up 5.4% on ASMS up 5.0% = 0.4% Increase
UA RPMS up 4.6% on ASMS up 4.2% = 0.4% Increase

 

[WorldTraveler]

The interaction of RPMs to ASMs produces load factor - or ASMs are ALL of the seat miles that are offered while RPMs are the ones with paying backsides in them.

Not sure why you want to focus on just mainline but the trend for AA and DL is similar - higher LFs on int'l (almost entirely mainline) than domestic. Regional load factors are usually a few points lower than mainline domestic.

Also, AA's mainline LF was the lowest of the big 3 last year for July and even though AA increased its LF the most, it still was not the highest LF. DL's domestic mainline LF last year was 89.9% but fell slightly to 89.5%, still the highest of the big 4 including WN.

AA's mainline LF almost identical to WN's.

among int'l LFs, AA was still the lowest.

remember that optimal revenue mgmt. and network optimization is dependent on a single, connected network, res system, and revenue mgmt. AA doesn't have that yet but will.

Filling more seats increases RASM so AA will benefit from a single res and revenue mgmt. system.

given the way AA is transitioning to a single res system, it is likely third quarter 2015 LFs will start to show increases.

 

[autofixer]

Are we comparing apples to apples yet?  Are these numbers inclusive of LUS and LAA merged YOY or are we still comparing apples to oranges? Disclaimer: I am too lazy to read the report myself.  

 

[WorldTraveler]

AA has reported AA and US traffic on a combined basis since the day the merger legally closed.

other carriers did the same thing

 

[swamt]

 
– American Airlines Group, including American Airlines, US Airways and its owned and contracted regional partners, said Tuesday it had the highest monthly traffic in its history in July with 21.8 billion revenue passenger miles.
Mainline American Airlines and US Airways reported that its traffic excluding regional carriers was 19.6 billion RPMS, up 4.4 percent, on a 1.7 percent increase in capacity. Load factor jumped 2.3 percentage points to 87.8 percent.
 
http://aviationblog.dallasnews.com/2015/08/american-airlines-southwest-airlines-set-records-with-july-traffic.html/
 

The jump in Load Factor is impressive.  Great job and congrats to all the AA employees for another record setting month...

 

[700UW]

 

[WorldTraveler]

I'm not sure what you are posting this and why some are so afraid of the truth but the graph validates exactly what I have said all along - that AA's RASM performance has been weaker than the industry, AA's labor expense is below 2 other carriers while aircraft expenses are higher than 2 others, AA's fuel cost advantage has been solely because of fuel hedge gains (AA's fuel cost is middle of the pack when fuel hedges are taken out of the equation as this graph shows), and AA's margin is also middle of the pack without fuel hedges.

based on guidance for the third quarter, that trend is expected to continue.

If you or anyone else would like to argue that the graph shows a different picture, by all means do so.