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29-Feb-2012 5:59 AM

American Airlines defends USD1 billion revenue growth plan

Analysis

American Airlines has been under pressure to explain how it will increase annual revenue by USD1 billion by 2017. While the number may be daunting, it represents only a 4.2% increase in 2011's overall revenue of USD23 billion. Additionally, American has made revenue leaps before: a USD1.8 billion increase from 2010 to 2011 and USD2.3 billion from 2009 to 2010. It is difficult to separate out previous adverse trading conditions from structural changes, but American has outlined a very achievable agenda independent of revenue growth from any possible merger or acquisition.

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