American Airlines (now merged with US Airways) posted record profits last quarter, thanks to super low gas prices. It’s good for them — but sorry, not for you, our dear traveler.
— Ely Portillo (@ESPortillo) January 27, 2015
– American raked in a $597 million profit in the fourth quarter, way up from its $1.9 billion loss a year ago.
– It largely credits the super cheap fuel costs we’re all enjoying at the pump these days.
– But when CEO Doug Parker was asked if this meant lower fares in the future, his answer came right out of an econ textbook: As long as demand at the current prices is high, the prices won’t lower.
– “Pricing is tied to demand, and demand remains strong. When demand is strong, you see pricing move accordingly.” – Parker
– Parker adds that not all the money is going to the bottom line. It’s also going to:
- Retire old planes and buy new, energy-efficient planes
- Add fancy seats to first class
- Pay shareholders
- Give employees raises
Yes, you can whine
Trying to figure out why is it more expensive to fly to Raleigh and Charlotte than flying to Dallas
— Brian Parker (@The_Fat_Mamba) January 26, 2015
So. Charlotte is one of the most expensive airports to fly out of, in the entire country. WTF.
— Asia Chloë Brown (@AsiaChloeBrown) October 5, 2014
I wasted time, wasted gas and parking money just to hear they won’t cover my laptop.I’ll never fly with American Airlines again.
— Jaja Vankova (@JajaVankova) May 13, 2013
At least we’re going to get lie-flat seats in first class. Not that we can afford first class.
Photos: Tony Gutierrez / AP & John Simmons / Charlotte Observer