New American Airlines will Prioritise Yield Improvement over Capacity Growth, says OAG
Luton, UK, 3 February 2014
Following its merger with US Airways, the new American Airlines is set to become the single largest US carrier domestically and internationally, but is likely to marginally reduce capacity and seek yield improvement, according to OAG, the world’s leading aviation intelligence expert.
John Grant, executive vice president, OAG, says: “American Airlines and US Airways have started work on integrating their schedules and operations. Consolidation of network overlaps and slot reductions suggest that the new merged carrier will demand a cautious approach to growth over the next two years, rather than the pursuit of rapid expansion.
“Following the United Airlines and Continental merger in 2010, United saw domestic capacity fall by 4%, perhaps inevitable as their networks combined and the carrier began to focus on achieving the most profitable combined network. American Airlines reports a relatively low average domestic yield compared to other carriers in 2013, so there may also be some yield improvement still to come.”
OAG’s analysis of the merger (a deal officially completed on 9 December 2013) is outlined in OAG’s FACTS (Frequency and Capacity Trend Statistics) report for February 2014. The report also analyses capacity for each carrier over the last year.
Read the full press release here