American Airlines fuel bill forces Airbus delivery delay

American Airlines published its financial report for the second quarter of 2018 on July 27, 2018. Affected by the increase in oil prices, the company is postponing a delivery of 22 Airbus aircraft and reducing flights frequency.

The biggest airline in the United States saw its net income drop by 34.5%, to USD 566 million, mainly because of a 10.25% increase in operating cost, according to an official statement.

Photo by: @americanair

“This was perhaps the most challenging quarter for the American team since our merger with US Airways in 2013,” declared American’s Chairman and CEO Doug Parker.

American Airlines is already predicting lower financial results of 2018, as its fuel bill for the year should amount to more than USD 2 billion. The company is also affected by 2,500 flight cancellations back in June 2018, caused by a computer problem at its subsidiary, PSA Airlines.

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Several measures should be taken to limit the damages, including delaying of the delivery of 22 A321neos that were initially expected for 2019, 2020 and 2021. Flights frequency should also be reduced in order to increase flight fares.

Thanks to this austerity plan, Parker expects to reserve steam and see a growth in earnings by the end of 2019.