American yet to realise US Airways merger benefits: Moody's
American Airlines may have yet to realise the full revenue benefits of its 2013 merger with US Airways, suggests Moody's Investors Service in a new report. "American's inferior operating margins imply that the company has yet to capture the operating benefits of the 2013 merger with US Airways," the rating agency said in a credit opinion Tuesday. Moody's expects the carrier's operating margin to lag peers Delta Air Lines and United Airlines by at least 350 basis points in 2019, it says. It cites American's significantly smaller international network – it only represented roughly 27% of revenues in 2018, compared to around half at its competitors – among reasons for this discrepancy. The suggestion that the American-US Airways merger has not lived up to its promises is likely to raise questions. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-22/oneworld/american-yet-to-realise-us-airways-merger-benefits-moodys
https://portal.staralliance.com/cms/logo.png
American yet to realise US Airways merger benefits: Moody's
American Airlines may have yet to realise the full revenue benefits of its 2013 merger with US Airways, suggests Moody's Investors Service in a new report. "American's inferior operating margins imply that the company has yet to capture the operating benefits of the 2013 merger with US Airways," the rating agency said in a credit opinion Tuesday. Moody's expects the carrier's operating margin to lag peers Delta Air Lines and United Airlines by at least 350 basis points in 2019, it says. It cites American's significantly smaller international network – it only represented roughly 27% of revenues in 2018, compared to around half at its competitors – among reasons for this discrepancy. The suggestion that the American-US Airways merger has not lived up to its promises is likely to raise questions. <br/>
