We have passed on pretty much the fuel increases that are out there. And then the last thing is you have a natural hedge today - as fuel increases, the industry can raise revenues.
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Plus you put a risk on the company (if oil prices fall). If we all hedged fuel, we’d move the fuel price and actually drive the fuel price up. It’s very expensive, and you can’t insure your entire portfolio of fuel. Why doesn’t American hedge against fuel spikes like Southwest does?Ī. Spot prices for jet fuel prices have eased in the last couple of months, but they’re still double the price before the pandemic. As we look out at bookings … we don’t see any huge change from a revenue standpoint as we go forward. Corporate business is back about 65%, 75%. Small business is back 100% also, because those businesses had to survive, they are out flying. What’s going to happen to revenue after Labor Day, when leisure travel slows down?Ī. American is coming off its first profitable quarter, excluding government aid, since the pandemic started.
Kerr spoke recently to The Associated Press. The airline is trying to fly through a bumpy recovery in travel during which revenue is rising but so are costs like fuel and labor.
Kerr is the chief financial officer of American Airlines, and his task is to fix a balance sheet that has been battered by borrowing needed to survive the pandemic.Īmerican has the most debt among all U.S. FORT WORTH, Texas (AP) - Derek Kerr might have the hardest job in the airline business.