American records favourable 1Q2014 results; but admits complex integration tasks lie ahead
Similar to its US legacy peer Delta, American Airlines recorded positive 1Q2014 financial results in what American's management described as "the most difficult winter season any of us have ever experienced in this business".
American recorded a profit despite canceling roughly 34,000 flights (which is approximately double the flights cancelled by Delta) and taking a USD115 million revenue hit from the disruptions in its operations. Even as the storms wreaked havoc for most carriers, the US domestic market was one of American's best performing regional entities during 1Q2014.
While the carrier is expressing positive sentiment about the demand environment through its estimated 4% to 6% passenger unit revenue growth in 2Q2014, American's executives admit the company faces the toughest integration challenges in 2015. One major challenge is in migrating to a single reservations systems platform.
Meanwhile, American is moderating its public optimism, preferring to adopt a modest understatement of the outlook - while hoping for a successful outcome.
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