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November 08, 2013

American says passenger traffic rose 4.4 percent in October

American Airlines said consolidated passenger traffic increased 4.4 percent in October as the carrier along with regional airline, American Eagle, added 4.3 percent in capacity.

Its consolidated load factor grew 0.1 percentage points to 82.4 percent for the month. 

Unit revenues grew 6.6 percent compared to October 2012, American said. However, the airline said that the government shutdown in October led to a reduction in revenue of about $20 million and dropped its unit revenues by 1.1 percentage points.

"It is no surprise that our continued investments in new products and services and great operating performance result in higher customer satisfaction which, in turn, drives higher revenues," said American chief executive Tom Horton in a note to employees on Friday morning. "These results demonstrate once again that we are building a strong, competitive and profitable new American – well-positioned to grow even stronger upon completion of our merger with US Airways."

International traffic increased 5.0 percent as the airline added 4.1 percent more capacity. Domestic traffic also grew 3.5 percent with a capacity increase of 3.9 percent.

Keep reading for the full letter from Horton.

-Andrea Ahles

Dear American Team:

Today, we reported our October revenue and traffic performance and the results are very strong. Our passenger revenue came in at $1.9 billion – an 11.1 percent increase compared to last year and an all-time high for any October in American's history.

We carried more customers in October with traffic increasing 4.4 percent. And during our busiest October ever, our operational performance also improved – setting multiple records. Highlights include ten perfect days with no cancellations and a completion factor of 99.9 percent – our best ever for an October, our best ever baggage performance with a preliminary rate of just over 2 claims per 1,000 customers, and our second best January-October DOT A+14 in 10 years at 77.9 percent.

These results say it all. The whole American team – at the airports, on the phones, onboard our airplanes and throughout the company – is doing a great job.

And our customers are taking note as shown in our “likelihood to recommend” score, which we track in the monthly Customer Satisfaction Survey by asking customers whether they would recommend American to others. I’m pleased to report that, in October, we achieved the highest score American has ever received – 78.2 percent – since we began tracking this back in 2007. In fact, this is the second straight month we have achieved a new all-time high score, following an outstanding performance in September.

It is no surprise that our continued investments in new products and services and great operating performance result in higher customer satisfaction which, in turn, drives higher revenues. These results demonstrate once again that we are building a strong, competitive and profitable new American – well-positioned to grow even stronger upon completion of our merger with US Airways.

With winter and the holiday travel season approaching, the next couple of months will be very busy. Please work safely. Our customers appreciate your hard work and dedication, and I do, too.

Thanks for all you do!

Tom

 

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