American Airlines holds a bullish view despite supply overhang in some specific geographies

American Airlines continues to maintain a positive outlook on global demand despite capacity creep in certain geographical regions, which is creating revenue pressure during 3Q2014.

American has initiated its own capacity cuts in the trans-Atlantic and Latin America, but other airlines are backfilling some of its supply pull-down on the Atlantic, which is causing concern for the airline.

As it works to attain a rational supply-demand balance in some of its regional entities, American is also offering explanations of how it intends to use its relatively high cash balances in the short term.

That could include keeping a higher than average liquidity balance until some of the toughest tasks of its merger integration are complete.