American Airlines Foresees 50% Drop in Capacity for Q4

By Kurt Stolz on 26 October 2020
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American Airlines said it expects its system-wide capacity to be down by over 50% in the fourth quarter, even as it reports improvements in traffic and load factors compared to earlier during the pandemic.

“We still have a long road ahead,” said CEO Doug Parker in a memorandum to employees that was shown to Frequent Business Traveler.

The carrier said it is matching its forward capacity with “observed booking trends.”

The airline was forced to furlough 19,000 employees on October 1 when funds from the CARES Act, which helped fund U.S. airline payrolls for six months,  ran out.

The world’s largest carrier said that it expects long-haul international capacity to be down approximately 75% compared to the fourth quarter in 2019, amidst border closures and the pandemic-induced drop in business travel.

American saw improvements in passenger demand and load factors during the third quarter, but both continue to be significantly below 2019 levels. The company will continue to match its forward capacity with observed bookings trends and currently expects its fourth-quarter system capacity to be down more than 50% year over year, with long-haul international capacity down approximately 75% year over year.

(Photo: Accura Media Group)

Accura News

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