American Airlines Sees Situation Getting Worse, Not Better

In response to diminished demand for air travel in the age of coronavirus, on March 10, American Airlines (NASDAQ: AAL) announced that it will reduce domestic capacity (i.e. the number of seats it has available for reservation, and by extension, the number of flights it will operate) by 7.5%. International flights would get cut 10% "for the summer peak" flying season.  

Just four days later, demand had slipped further. American announced a 20% reduction in domestic capacity for April and a 30% reduction for May -- alongside a 75% reduction in international flights for the period running from March 16 to May 6.  

Image source: Getty Images.

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Source Fool.com