While fuel has been significantly cheaper, this has not helped AA off-set the cost of lower traffic volume. AMR is the first of the big airline companies to report their earnings after the end of the quarter. All the other major carriers are expected to show sharp losses in profits as well.
The sharp drop in traffic has also had another effect on the industry, which could be good for consumers. With the U.S. in a recession, the airlines have not been able to raise their airline prices or fees. This has caused something of a fare war between the carriers, keeping prices low. Airlines are also offering unprecedented deals in an effort to lure back consumers.
But, while the losses seem street, Wall Street analysts were actually expecting AMR to lose closer to $1.68 per share on revenue of approximately $4.73 billion. Many experts are predicting that the airline industry may have hit bottom in the first quarter and that there may be brighter days to come in the future. AMR just received funding to add two new airplanes to their fleet, which may be a good sign that credit in this industry is opening up.
Plus, with all
For more information on the deals that the airlines are offering, check out the FlyHub.
Misty Faucheux is an avid writer and traveler. She has visited every state in the union and many countries in Europe and Canada. Misty lives in Colorado with her three cats and two dogs (just couldn't say no to the pound puppies and kitties) with her boyfriend. She is currently working as the social media manager at Viscape.com, a social networking travel and real estate Web site.
