Spirit CEO Ted Christie criticized the current state of the airline industry, saying that profits have been “concentrated around two companies,” during a call with analysts on Monday.
27.04.2024 - 13:41 / skift.com / United Airlines / Southwest Airlines / Bob Jordan / Paris / Meghna Maharishi
American Airlines said Friday it would reduce some of its international routes during the second half of the year and early into 2025 because of ongoing Boeing 787 Dreamliner delays.
The carrier is the latest to trim its schedule as a result of Boeing delivery delays.
“We’re making these adjustments now to ensure we’re able to re-accommodate customers on affected flights,” American said in a statement. “We’ll be proactively reaching out to impacted customers to offer alternate travel arrangements.”
American will suspend multiple routes to Europe at the end of the summer. Here are the affected routes:
American said it will also reduce flights from Miami to Rio de Janeiro, JFK to Buenos Aires and JFK to Rome. Some of the carrier’s Hawaii routes will also see reductions. For example, American said it would no longer fly from Dallas-Fort Worth to Kona this winter.
Despite the cuts, American is also increasing capacity on other routes. Philadelphia to Barcelona flights will fly daily starting in January. American said it would also operate flights from Miami to Sao Paulo three times a day from October 27 to March 25.
Boeing said it would delay the production of the 787 due to a shortage of certain parts. The plane maker previously halted 787 deliveries in 2021 due to manufacturing issues.
American isn’t the only carrier to be affected by the Boeing delivery delays. Southwest Airlines said in an earnings release Thursday that it would make a rare move and exit from four airports: Syracuse, New York, Houston-IAH, Cozumel, Mexico and Bellingham, Washington.
Southwest CEO Bob Jordan also said it planned to end 2024 with 2,000 fewer employees in a bid to cut costs due to delivery delays with the Max 7, an aircraft that has yet to be certified.
United Airlines said it would pause pilot hiring in the spring because it doesn’t expect its orders for 80 Max 10s to be fulfilled this year. The airline also asked some of its pilots to take unpaid time off since the delivery delays reduced its forecasted block hours in 2024.
Spirit CEO Ted Christie criticized the current state of the airline industry, saying that profits have been “concentrated around two companies,” during a call with analysts on Monday.
Frontier Airlines CEO Barry Biffle said he believed the U.S. airline industry doesn’t have the technology to comply with the latest Department of Transportation rules.
Last week, Southwest’s CEO Bob Jordan ignited a flurry of headlines when he suggested that the struggling airline could make changes to some of its long-standing policies in an attempt to increase ancillary revenue.
Southwest Airlines' settlement terms with the Department of Transportation (DOT) are kicking in — leading to future customers receiving compensation if they experience a significant flight delay. As part of the settlement sparked from the airline’s 2022 holiday meltdown, Southwest has agreed to award $75 or more in transferrable vouchers to travelers who reach their destination at least three hours late due to an airline-caused disruption or cancellation, according to the DOT.
When Southwest Airlines reported larger than expected financial losses in its most recent quarterly earnings call on April 25,the airline also announced that it will be cutting service to four airports airports as of August 4, 2024. Additionally, Southwest is planning to reduce capacity at two other major destinations. The goal of these cuts is to “improve unit revenue performance and operating margin,” according to the earnings call. The airline has not ruled out further cuts to its network, adding to the uncertainty plaguing the airline industry in recent months.
A United Airlines passenger has been ordered to pay the carrier more than $20,000 after forcing a flight to divert.
Southwest Airlines is considering making major changes to its seating process.
Southwest's famous boarding process may be up in the air. On Thursday, after reporting a net loss of $231 million, the Dallas-based airline announced a variety of changes, including the potential for new seating assignments and confirmed the closure of operations at several airports.
After the Biden administration announced it would crack down on junk fees and require automatic refunds, it was unclear how the rules would be enforced and applied to the airline industry.
Southwest Airlines is pulling out of four airports as it deals with Boeing delays.
American Airlines CEO Robert Isom said Thursday that certain aspects of a new federal government rule that would require airlines to provide automatic refunds were “gray.”
The ongoing Boeing 737 Max 9 fallout is continuing to burn airlines.