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A turnaround for American Airlines

Bankruptcy plans and American Airlines labor relations challenges were discussed in a past post, but a June 15, 2012 US News article discussed positive strives the carrier is making. While under Chapter 11 bankruptcy protection, the airline, a large company, is shielded from creditors while it restructures its business.

Revenue from American’s Latin America flights is up 11%, just ahead of its 10% revenue increase in its domestic unit. American Airlines has a large part of the US-Latin America and Latin American-world flights market. Luckily for American, growth in that market is expected to be greater than in Europe and Asia between 2012 and 2017. American also has key hubs in the United States; hub cities such as New York, Los Angeles, and Chicago have large metropolitan populations.

The airline wishes to increase its international presence. In 2012, 62% of its routes were domestic leaving only 38% as domestic. The company’s current strategy is to grow to have 44% international routes by 2017. To do so and retain customers, the airline must increase customer satisfaction in world markets. It is refurbishing its long haul Boeing 777 fleet and working to increase its staff’s efficiency. Code share flights with its international airline partners in the oneworld network will also bring in revenue and the carrier may add domestic code shares to boost revenue further.

In short, American Airlines’s outlook seems to be soaring beyond what some had previously thought. Management hopes to bring the group out of Chapter 11 protection by the end of the year.

We, at the law offices of Jayson Lutzky, P.C. ( are here to help you. We stay current on the latest developments in bankruptcy and care about each and every client. It is important to hire a qualified attorney if you are considering bankruptcy, one that will explain each step of the process to you. For a free consultation, call us today: (800) 660-LAWYER or (800) 660-5299.

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