While American Airlines saw a 48.4 percent decline in overall net operating income to US$341 million during its third-quarter 2018, due to 2,100 cancelled flights during Hurricane Florence, its cargo business’s revenue climbed 16.4 percent to $260 million, year-over-year, due to a 12.1 percent increase in yield and a 3.8 percent increase in volume.
In August, the traditionally passenger-focused airline said it anticipated fuel prices to affect future financial results. William Douglas Parker, chairman and CEO of American Airlines Group advised: “To the extent any of us were viewing this quick run-up as a spike that would quickly correct itself, we should abandon that notion.”
This week, Parker commented, “We have moved quickly to adapt to the higher cost environment with lower planned capacity growth, the cancellation of unprofitable flying, deferral of new aircraft deliveries, and continued aggressive cost management.”
American has made further investments in its cargo sector this year, with four new services connecting the United States to Europe, and in June, a service to Cuba. Earlier this month, it further invested in its European reach with operations at Worldwide Flight Services’ (WFS) new Milan Malpensa Airport (MXP) cargo terminal, which handles the airline’s daily flights to New York (JFK) and Miami (MIA).