A slight, 1.3 percent uptick in fourth quarter revenues was insufficient to offset a dismal 2016 at American Airlines Cargo, which announced a full-year decrease of 7.9 percent in revenues, to US$700 million. Soon after, American also announced that Art Torno, senior vice president for international and cargo, will retire this April, after 38 years with the airline.
American Airlines’ latest Q4 results end seven straight quarterly declines in cargo revenues with a late-year surge in demand and improving airfreight rates. Fourth quarter revenues rose slightly, to $194 million, a 1.3 percent increase, year-over-year. In the context of the full year, the slight increase was not strong enough to make up for the 17 percent, y-o-y, decline in revenues the carrier experienced in the first quarter of 2016.
Cargo ton miles rose 12 percent, y-o-y, to 670 million in the fourth quarter, pulling 2016’s total up 4 percent to 2.4 billion, compared to 2015. However, yields took a hit, falling 12 percent in 2016 to 28.89 cents per ton mile.
Following Torno’s announcement, American noted that Jim Butler, currently president of AA Cargo, will assume Torno’s position. Butler has been president of AA Cargo since 2013.