American Airlines reported a Q4 net profit of US$1.29b as lower oil prices continued to add to its bottom line. American earned $3.28b in Q4, which includes a $3b boost from a change in accounting for tax allowances. It benefited from a more than 40% drop in its fuel bill from a year earlier. The airline said it had repurchased $1.1b worth of shares in the quarter as part of a previously announced buyback. Sterne Agee CRT analyst Adam Hackel called the buybacks "remarkable" because the company has repurchased about 10% of its stock in the last 2 quarters. However, intense competition from low-cost rivals as well as weak demand in Latin America and growing fears of a rapidly spreading Zika virus in the region cast some concern about American's top line. <br/>
oneworld
Once dubbed "Slasher Walsh" for his relentless drive to cut costs, the boss of IAG is showing no sign of going soft. Willie Walsh has built his reputation on his refusal to give ground to unions and a willingness to wield the axe at former state-owned airlines, convinced it's the only way to stay competitive in an era when budget carriers increasingly rule the roost. It is a testament to his success that while IAG lags Lufthansa and Ryanair in terms of passenger numbers, it is expected to report more operating profit for 2015 than those carriers or any other European rival. Walsh's strategy over the past 15 years has also been marked by an aggressive M&A policy as he sought to prevail in what he once described as a "fight for survival". <br/>
The union representing Cathay Pacific pilots has hit back angrily at claims their work-to-rule action has hampered the airline’s growth, saying “gross mismanagement” was instead to blame. Hong Kong Aircrew Officers Association general secretary Chris Beebe challenged management’s assertion that the work-to-rule was to blame for the postponement of new routes and an increase in flight frequency. In a letter to union members, Beebe accused management of trying to pass on blame for its own “poor choices and strategies”. The real cause of the poor performance, he argued, was “gross mismanagement of costs with respect to fuel hedging and inciting employee discontent”. Cathay Pacific said the letter contained “inaccurate assertions” and insisted it was trying its best to resolve outstanding issues with its pilots. <br/>