American CEO Parker becomes latest airline chief to exit
American Airlines CEO Doug Parker will retire in March and be replaced by its current president, Robert Isom, as the airline seeks to rebuild after massive losses caused by the pandemic. Parker, 60, has led Texas-based American since late 2013, when he engineered a merger with smaller US Airways. Isom, 58, has been the heir apparent since becoming American's president in 2016 after Scott Kirby was forced out and joined United Airlines, where he now serves as the CEO.news.yahoo.com
American Airlines CEO Doug Parker to retire, president Robert Isom to take reins March 31
In this articleAn American Airlines plane lands at Ronald Reagan Washington National Airport November 23, 2021 in Arlington, Virginia. American Airlines CEO Doug Parker, the longest-serving chief executive of a major U.S. airline, is stepping down and will be replaced by the carrier's president, Robert Isom, on March 31, the carrier announced Tuesday. Parker will continue as chairman of American's board. This is breaking news. Check back for updates.cnbc.com
US air travel rises to highest levels yet since pandemic hit
(AP Photo/Rick Bowmer, File)Across the United States, air travel is recovering more quickly from the depths of the pandemic, and it is showing up in longer airport security lines and busier traffic on airline websites. "Our last three weeks have been the best three weeks since the pandemic hit, and each week has been better than the one prior,” American Airlines CEO Doug Parker said Monday. However, the airlines still have far to go before travel fully returns to pre-pandemic levels. Since the pandemic hit, air travel has picked up a few times — mostly around holidays — only to drop back down. The airline said people are booking leisure trips to beach and mountain destinations but business travel is still lagging.
American warns 13,000 employees of furloughs as airlines prepare to lose federal aid next month
American Airlines on Wednesday said it will send furlough notices this week to about 13,000 employees as a second round of federal payroll aid is set to expire next month and travel demand remains in tatters. The latest $15 billion Congress approved for U.S. carriers late last year required airlines to recall the employees they furloughed in the fall and maintain payroll through March 31. It was the second round of Covid aid for the industry; Congress gave airlines $25 billion last March to keep them from cutting employees through the fall. American is the only large U.S. carrier to furlough pilots, as United, Delta and other carriers reached deals with unions that allowed for some reduced flying or pay in exchange for not cutting jobs. The Allied Pilots Association, American Airlines pilots' union, said it would try to reduce the number of furloughs but criticized the airline's financial decisions in recent years and the fact that it didn't use voluntary measures to spread out flying to limit job cuts.cnbc.com
Airlines close books on rotten 2020 and so far, 2021 is grim
An American Airlines Boeing 777 is framed by utility wires as it prepares to land at Miami International Airport, Wednesday, Jan. 27, 2021, in Miami. And now a halting rollout of vaccines threatens to further delay a recovery in travel and the travel industry. On Thursday, as airlines reported results, a new coronavirus variant identified in South Africa was found in the United States for the first time, with two cases diagnosed in South Carolina. “Travel restrictions on international have resulted in a reduction in demand,” American Airlines CEO Doug Parker said. Ad___JETBLUE AIRWAYSJetBlue reported a loss of $381 million, after reporting a profit in the fourth quarter of 2019.
American Airlines, without additional stimulus, will cut flights to more U.S. cities, CEO says
American Airlines would be forced to discontinue service to additional U.S. markets in the absence of new coronavirus relief from Washington, CEO Doug Parker told CNBC on Thursday. Parker said American and other major carriers are pushing back more flight cuts, holding out hope for extra government aid. Parker said American Airlines projects its revenues for the third quarter to be down about 75% year-over-year, slightly better than the roughly 85% sales decline experienced in the second quarter. In addition to service cuts, American began to furlough about 19,000 workers this month after the initial batch of relief expired. It's a process that can take between 12 to 15 months, Dennis Tajer, an American Airlines pilot and union official, said on CNBC last week.cnbc.com
American, United to furlough 32,000 as time runs out on aid
American Airlines and United Airlines say they will begin to furlough 32,000 employees after lawmakers and the White House failed to agree on a broad pandemic relief package that includes more federal aid for airlines. She said a bailout that keeps airline workers employed would be cheaper for the government than putting them on the unemployment line during a pandemic. Beyond American and United, smaller airlines have sent layoff warnings to several thousand employees. Late Tuesday, the Treasury Department said it completed loans to seven major airlines: American, United, Alaska, JetBlue, Frontier, Hawaiian and SkyWest. American now expects to borrow $5.5 billion from the Treasury, and United can get $5.17 billion.
Airlines are hours away from cutting more than 30,000 jobs without billions more in federal aid
Chip Somodevilla | Getty ImagesThe terms of billions in federal airline aid expire early Thursday, setting the stage for more than 30,000 job cuts. The proposal has won bipartisan support and could be included in the next national coronavirus aid package. A $2.2 trillion package unveiled by House Democrats on Monday includes the additional airline aid, and talks have progressed with the White House in recent days. Airline executives don't expect a return to 2019 volumes for several years. American Airlines CEO Doug Parker said he was encouraged by the talks in Washington and that he's open to postponing furloughs if a deal is close.cnbc.com
Airline CEOs meet with White House in last-minute plea for more coronavirus aid
U.S. airline CEOs met with White House chief of staff Mark Meadows on Thursday, making a last-minute attempt to convince officials to approve more coronavirus aid as mass job cuts are set to hit the industry next month. After the meeting, Meadows said the White House is open to a stand-alone package for the sector, reiterating comments from last month. President Donald Trump late last month said the White House was weighing executive action to support the industry, but provided few details. Additional airline payroll grants won public support from a bipartisan group of lawmakers and Trump last month. Tens of thousands signed up, helping lower airlines' payroll costs.cnbc.com
American Airlines plans 19,000 furloughs, layoffs in October
DALLAS American Airlines said Tuesday it will eliminate 19,000 jobs in October as it struggles with a sharp downturn in travel because of the pandemic. The furloughs and management layoffs announced Tuesday are in addition to 23,500 employees who accepted buyouts, retired early or took long-term leaves of absence. U.S. air travel plunged 95% by April, a few weeks after the first significant coronavirus outbreaks in the United States. In March, passenger airlines got $25 billion from the government to save jobs for six months, and American was the biggest beneficiary, receiving $5.8 billion. American plans to fly less than half its usual schedule and only one-fourth of its lucrative international service in the fourth quarter.
American, Southwest add to US airline industry's 2Q losses
That pushed the combined loss of the nation's four biggest airlines to more than $10 billion in just three months. Between them, American and Southwest carried 15.4 million passengers from April through June. Earlier, Delta Air Lines reported a $5.7 billion loss that was worsened by writing down investments in global airline partners who have filed for bankruptcy protection, and United lost $1.6 billion. American, based in Fort Worth, Texas, reported a loss of $2.07 billion, compared with a year-ago profit of $662 million. Seattle-based Alaska Airlines said it lost $214 million compared with a $262 million profit a year earlier.
American Airlines to allow travelers to switch from crowded flights as coronavirus fears linger
The measure, which American announced Wednesday, follows a similar step by United Airlines . American Airlines has started alerting travelers about crowded planes before their trips and allowing them to switch to other flights in an effort to calm customers nervous about the spread of the coronavirus . Major U.S. carriers now require that travelers wear masks on board and say they will make a few available for customers. American Airlines' customers will be notified that a "flight may be busier than you expected" when they open their digital check-in window. U.S. airlines, including American, last month started receiving $25 billion in government aid that requires them to keep workers through Sept. 30.cnbc.com
Stocks making the biggest moves after hours: Bed Bath & Beyond, JC Penney, United Airlines and more
Bed Bath & Beyond The home goods retailer's stock soared 12% in extended trading after the company posted a double beat on earnings and revenue in the fourth quarter. American Airlines The airline's stock tumbled 3% after the market closed. Costco Shares of the big-box retailer climbed about 1% in extended trading after the company announced an increase in its quarterly cash dividend. The company's board approved a quarterly increase from 65 cents per share to 70 cents per share. United Airlines The airline's stock dropped 1% in extended trading after the company said it expects to receive around $5 billion from the federal government through the coronavirus aid bill.cnbc.com
Airlines cheer government coronavirus aid but paint bleak demand picture
The record drop in air travel demand because of the coronavirus pandemic appears to be as bad as it's going to get, American Airlines CEO Doug Parker said Wednesday. "Our revenues are down 90% on a year-over-year basis and they've been that way now for a few weeks. But despite the aid, airline executives have painted a bleak picture for their businesses, warning that travel demand has all but evaporated, sapping cash from the airlines as they continue to pay fixed costs with the fewest passengers in decades taking to the skies. American said the Treasury Department approved $5.8 billion in assistance a $4.1 billion grant and a $1.7 billion low-interest loan. The executives predicted travel demand won't come back quickly, weakness that will likely last the rest of the year and into 2021 because of the economic toll and lingering health concerns.cnbc.com
American Airlines' profits jump despite Boeing 737 Max problems
American Airlines fourth-quarter earnings and revenue came slightly above analyst estimates, despite complications from the grounding of the Boeing 737 Max. Revenues rose 3.4% to $11.31 billion, just above Wall Street expectations. Like rivals Southwest and United, American is grappling with the nearly yearlong grounding of the 737 Max. But the plane's grounding was not American's only problem in 2019. The airline expects to earn between $4 and $6 a share in 2020, in line with Wall Street forecasts.cnbc.com
American Airlines CEO says 737 Max 'damages' should hit Boeing shareholders, not American's
American Airlines is determined to make Boeing shareholders pay the price for flight disruptions caused by the airplane manufacturer's ongoing 737 Max dilemma, CEO Doug Parker told CNBC Friday. "Certainly the shareholder piece should be borne by the Boeing shareholders, not the American Airlines shareholders." The halting of 737 Max flights across the airline industry has reportedly cost nearly $1 billion. American Airlines estimates that its full-year profit took a $540 million hit from the trouble. In July, Boeing took a $5.6 billion pre-tax charge in the second quarter due to the 737 Max grounding.cnbc.com
Everything Jim Cramer said about the stock market on 'Mad Money,' including next week's earnings, American Airlines CEO, Honeywell spinoff
CNBC's Jim Cramer on Friday said the slate of earnings reports he saw this week gave him a positive feeling about the week ahead. The "Mad Money" host also sits down with American Airlines CEO Doug Parker to find out how the company is moving forward with a cloud still hanging over Boeing's 737 Max airplane. Later in the show Cramer assesses the results of Honeywell's spinoff of its auto parts and connected-home businesses, a year later. On the horizon: Another week of earnings reports delugeBoeing owes American Airlines, CEO Doug Parker saysDoug Parker, CEO of American Airlines Adam Jeffery | CNBCAmerican Airlines is determined to make Boeing shareholders pay the price for flight disruptions caused by the airplane manufacturer's ongoing 737 Max dilemma, CEO Doug Parker told CNBC. "Certainly the shareholder piece should be borne by the Boeing shareholders, not the American Airlines shareholders."cnbc.com
American Airlines cuts Boeing 737 Max from schedules until Jan. 16 as grounding continues
American Airlines pulled the Boeing 737 Max from its schedules until mid-January, delaying its return longer than any U.S. airline, as the prolonged grounding of the troubled plane disrupts year-end holiday travel. The grounding has forced airlines to cancel thousands of flights, driven up costs and dented airlines' profits. Southwest Airlines struck the planes from its schedules until Jan. 5, while United Airlines expects them back Dec. 19. American said it plans to "slowly phase in" its Max planes, starting Jan. 16, and will increase its use of the jets through February. It had 24 of the 737 Max 8 planes at the time of the grounding and has 76 on order.cnbc.com
Poor morale, sliding stock: Pressure mounts on American Airlines CEO Doug Parker
American Airlines CEO Doug Parker attends a ceremony to mark the opening of five new gates at O'Hare International Airport on May 11, 2018 in Chicago, Illinois. Scott Olson | Getty Images News | Getty ImagesMounting problems for American Airlines CEO Doug Parker can be summed up in an Instagram post by his rival at Delta. "Hi from #Santiago," wrote Delta CEO Ed Bastian in the caption of the Oct. 1 selfie post, the Chilean capital in the background. American's management is facing a slumping stock price, strained labor relations and unhappy customers, raising questions about how CEO Parker can turn things around. "Morale is at an all-time low," said Lori Bassani, president of the Association of Professional Flight Attendants, which represents about 28,000 American Airlines cabin crew members.cnbc.com
American Airlines says Boeing 737 Max grounding cost it $185 million in the second quarter
The grounding of Boeing 737 Max jets has forced American Airlines to cancel thousands of flights, costing the Fort Worth, Texas-based airline about $185 million in pretax income in the last quarter, the carrier said Wednesday. American said it canceled around 7,800 flights in the second quarter due to the grounding. American shares rose more than 3% after its investor update but later pared gains and were up 1% in midmorning trading. In April, American said it would cost the airline $350 million in pretax revenue this year. American has 24 of the planes in its fleet of more than 900 aircraft and has another 76 on order.cnbc.com