American Airlines says that margin margin with Delta and United can be closed

Airbus Airbus Airbus Airbus A31-231 parked in January in January in Las Vegas’ Harry Reid International Airport. (PHOTO ARTUR VIDAK)

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American Roubles Rivals in Tax Profit Margins

With American airline under a constant attack due to failure to match the margins of a profit parties, two main handlers of carriers said they are fully expected to close the gap.

Profit margin, expressed in percent, refers to the difference between income and costs. In recent years, the American called peer delta and United. In the second quarter, the American said that his tax margin was 5.8%. Delta reported margin before taxation of 11.6%, while United reported 11%.

American Ekecs say the carrier can compensate for Delta and United

Speaking at the investor conference, the American CFO Devon can say, “I think we will be able to transfer that margin significantly”, while the vice president of Steve Johnson said the carrier was well spent on the cost of the cost and receives a profit.

Improvement “Leaves us really encouraged us for the revenue gap on other airlines,” Johnson said. He noted that “historical performance of income represents more than half of the” revenue gap.

Citibank credit cards will enhance US income

The key to Johnson’s enthusiasm is a credit card to America AIECA signed with Citibank in December 2024. years. An agreement, which enters into force in 2026. year, eliminates Barclay as the Issuer of American cards, giving the exclusivity of Citibank. This should allow the bank to fully compete with American Express and Chase, which issues Delta and United Cards, Johnson said.

The arrangement “allows us to grow this business much faster than we are in the past,” Johnson said. It “creates an environment in which we can grow the program in the card Member card, also spend the ECO system for earning and combustion and rewards,” Johnson said, noticeable “it was impossible with two card providers.”

Delta leads in credit card income, with $ 2 billion in the second quarter. The American and United are not reporting a character, but all three indicated that at some point they expect about $ 10 billion in the annual credit card income.

Johnson also stated a new app, moving towards free wireless internet, new planes and better food as improvements that will increase income, though no one is unique for Americans.

U.S. chooses focuses on Ebitdar margin, not on margin before tax

When margins can be talked, focusing on the margin of Ebitar, which is slightly different from the standard margin measure before tax, in that salary before interest, taxes, depreciation, depreciation and restructuring costs, are excluded. As for Ebitdar margins, maybe he said that American and United “were in a very similar place” before the pandemic.

The difference can seem subtle, but Dennis Tier, a spokesman’s pilots, “I have” I have “I have” I have “I have”. That’s not a measure full performance of the company.

It can also be emphasized, because the CEO of Robert Issom has done a call for earnings in the second quarter, that the American has less international presence than competitors. However, “We are happy with the largest domestic carrier in the United States,” he said. The heads of all three carriers announced on Thursday to improve domestic performance.

American struggles united for Domination in Chicago O’Hare

Johnson noticed that during the pandemic American focused growth in Dallas and Charlotte. In terms of going, both are now among the first three unique airlines in the world, together with Atlanta. He said that Americans now seeks to build their presence in Chicago and New York, cities in which competitors in the presence and also obviously in credit card owners, an important lack in the cities of the wealth center.

At the United Airline Code, CFO Michael Leskinen seemed to absorb the reliance of American in the South Tier Hubs (including Miami and Phoenix). “If you make a lot of money in some of your southern middle, and margins are strong, fantastic,” he said. But “If you lose money in Hubs consistently in the year in the year of the year, it will not succeed.” United CEO Scott Kirby has repeatedly stated that American loses money in Chicago O’Hare, where it competes with United.

“If you have a winning record in Charlotte and Dallas, but still lose the matches, the plane still shows a losing record,” said Tier. The airline is now on whether you get or lose in the center, it is the entire franchise. Currently American management in the right themes, but the size of the output is very disappointing. They have a lot of land to compensate: Is it a margin map or margin canyon? “

To date, American actions reduced 24%, while Delta action increased by 2%, and united actions are 13%.