American Airlines’ strong 2Q2014 results despite revenue headwinds from Venezuela suspensions

American Airlines joined its US network airline peers in recording strong financial results during 2Q2014, and similar to Delta and United, saw particular strength in the US domestic market.

Also similar to Delta and United, American has concluded that there is some excess capacity on the trans-Atlantic markets, and has joined its peers in refining its capacity targets in that region for the remainder of 2014.

American in particular is bracing for headwinds from a reduction in service to Venezuela in 3Q2014, which will ultimately result in unit revenue performance below Delta and United. That pressure is continuing through 4Q2014.

Despite some geographical pockets of concern, American overall has a positive view of the demand environment, and is also joining its fellow network airlines in defining new shareholder rewards.