Fleet modernisation positions American Airlines for higher returns
At least one investor analyst seems to be buying into the rosy financial picture American Airlines CE Doug Parker painted last week. Jonathan Cooper at Seeking Alpha says he expect revenues at American to grow about 4% over the next 5 years. While that may not sound overly impressive, revenues at American declined 5.8%, from US$42.6b to $40.2b, between 2014 and 2016. During the first half of 2017, revenues rose 4.7% compared with the same period in 2016, the article points out. The airline is reinvesting money into its fleet and transitioning toward larger, more fuel efficient airplanes with more seats, which should increase revenue over the next 5 years. American's fleet will be 10% more fuel efficient in 2021, based on fuel gallons used per available seat mile. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-10-05/oneworld/fleet-modernisation-positions-american-airlines-for-higher-returns
https://portal.staralliance.com/cms/logo.png
Fleet modernisation positions American Airlines for higher returns
At least one investor analyst seems to be buying into the rosy financial picture American Airlines CE Doug Parker painted last week. Jonathan Cooper at Seeking Alpha says he expect revenues at American to grow about 4% over the next 5 years. While that may not sound overly impressive, revenues at American declined 5.8%, from US$42.6b to $40.2b, between 2014 and 2016. During the first half of 2017, revenues rose 4.7% compared with the same period in 2016, the article points out. The airline is reinvesting money into its fleet and transitioning toward larger, more fuel efficient airplanes with more seats, which should increase revenue over the next 5 years. American's fleet will be 10% more fuel efficient in 2021, based on fuel gallons used per available seat mile. <br/>
