American's CEO says demand for travel still bright - DC News FOX 5 DC WTTG

American's CEO says demand for travel still bright

Posted: Updated:
By DAVID KOENIG
AP Airlines Writer

FORT WORTH, Texas (AP) - The CEO of American Airlines says travel demand is still strong and he is not worried about airlines adding so many flights that they will drive down prices.

American Airlines Group Inc. CEO Doug Parker said Tuesday that airlines can charge profitable fares even as they add seats, which is different than in past years, when they were losing money.

Parker's upbeat tone contrasted with comments from Air France-KLM, which lowered its 2014 earnings forecast because overcapacity on international flying is hurting profits. Last month, Deutsche Lufthansa AG issued a similar warning.

American is expected to release June traffic figures this week. Parker declined to say what the statistics will show, but he said, "We're happy with the demand we are seeing for the product throughout the world." He dismissed the idea that there might be too much capacity on key routes, such as between the U.S. and Europe.

"There happens to be some growth internationally from a number of carriers, including American Airlines, in response to increased demand," he said. "That's what should happen."

In the past, airlines struggled when jet fuel prices rose or overcapacity caused a drop in the average fare per mile, called yield. Most carriers are profitable now despite fuel prices which are high by historical measures, and that is partly because they have been successful at controlling the number of seats and preventing prices from falling.

American, which owns US Airways, earned $480 million in the first quarter. Analysts expect net income to top $1.2 billion for the second quarter, according to a survey by FactSet.

"The airline is doing very well," Parker said. "We expect to continue to do very well."

Parker made the comments after a ground-breaking ceremony for a new flight operations center, the first new building at American's headquarters complex in more than 20 years. The center will house employees who coordinate and track flights.

American Airlines shares were down 36 cents at $39.74 in midafternoon trading. The shares, which started trading after the December merger with US Airways, began the day up 59 percent in 2014.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Viral StoriesMore>>

  • Puerto Rico declares chikungunya epidemic

    Puerto Rico declares chikungunya epidemic

    Friday, July 18 2014 7:48 AM EDT2014-07-18 11:48:06 GMT
    SAN JUAN, Puerto Rico (AP) -- Health officials in Puerto Rico on Thursday declared an epidemic of the mosquito-borne virus known as chikungunya, which was introduced into the Caribbean region late last year. Health Secretary Ana Rius said that more than 200 cases had been confirmed on the island as of June 25 and that the majority of them were reported in the capital of San Juan and nearby areas. The first case of chikungunya in the U.S. territory was reported in late May. Also on Thursday, ...
    SAN JUAN, Puerto Rico (AP) -- Health officials in Puerto Rico on Thursday declared an epidemic of the mosquito-borne virus known as chikungunya, which was introduced into the Caribbean region late last year. Health Secretary Ana Rius said that more than 200 cases had been confirmed on the island as of June 25 and that the majority of them were reported in the capital of San Juan and nearby areas. The first case of chikungunya in the U.S. territory was reported in late May. Also on Thursday, ...
  • Couple and baby miss Malaysia Airlines Flight 17 that was downed over Ukraine

    Couple and baby miss Malaysia Airlines Flight 17 that was downed over Ukraine

    Friday, July 18 2014 7:47 AM EDT2014-07-18 11:47:36 GMT
    Imagine how you would feel if you were supposed to be on Malaysia Airlines Flight 17 that was downed over eastern Ukraine on Thursday but changed your flight for a later time?
    Imagine how you would feel if you were supposed to be on Malaysia Airlines Flight 17 that was downed over eastern Ukraine on Thursday but changed your flight for a later time?
  • Company sets limits on how long workers can use bathroom

    Company sets limits on how long workers can use bathroom

    Wednesday, July 16 2014 11:02 AM EDT2014-07-16 15:02:02 GMT
    Should an employer have any say in how much time you spend in the bathroom on company time? According to an article on CNN.com, Chicago's Watersaver Faucet Company installed swipe card systems on bathrooms at their factory in an attempt to limit bathroom breaks to 6 minutes or less. WaterSaver disciplined nineteen workers for what they call "excessive use" of washrooms. FOX 5’s Wisdom Martin has more. READ MORE: http://money.cnn.com/2014/07/15/smallbusiness/bathroom-time-penalty/
    Should an employer have any say in how much time you spend in the bathroom on company time? According to an article on CNN.com, Chicago's Watersaver Faucet Company installed swipe card systems on bathrooms at their factory in an attempt to limit bathroom breaks to 6 minutes or less. WaterSaver disciplined nineteen workers for what they call "excessive use" of washrooms. FOX 5’s Wisdom Martin has more. READ MORE: http://money.cnn.com/2014/07/15/smallbusiness/bathroom-time-penalty/
Powered by WorldNow

WTTG FOX 5 & myfoxdc
5151 Wisconsin Ave. NW
Washington, DC 20016
Main Number: (202) 244-5151
Newsroom: (202) 895-3000
fox5tips@wttg.com

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices