Major Airline Cancels Thousands of Flights as it Struggles to Recover From Winter Storm
American Airlines CEO Robert Isom held the company's fourth-quarter earnings call on Tuesday, and the numbers he divulged looked dire, largely in part to Winter Storm Fern.
In just days, from Jan. 23 to Jan. 26, Isom delivered grim numbers, including more than 9,000 flights canceled. Two of the most affected areas included airports in Dallas and Charlotte.
The number marked American Airlines' "largest weather-related operational disruption" in the company's history.
What They're Saying
Devon May, the airline's Chief Financial Officer, chimed in and said that the storm will have a significant impact on revenue, somewhere in the neighborhood of $150 million and $200 million, which will reduce the airline's flown capacity for the first quarter by 1.5 percentage points.
"The impact of the storm is as significant as we've ever seen at American. Ice and freezing rain have significantly reduced operations, especially at DFW and Charlotte, our largest hubs, for multiple days," Isom shared. "Over the past four days, we've had to cancel more than 9,000 flights, making this the largest weather-related operational disruption in our history. "
Related: Another Major Winter Storm Is Targeting 19 States
Isom also said that the company expects "at least two more days of elevated cancellations before returning to normal operations later this week."
Astonishingly, United, Delta, and Southwest had very few cancellations compared to American, which reportedly had 881 flights canceled as of 1 p.m. ET. Isom said he was on the ground and offered his analysis.
Related: Over 10,000 U.S. Flights Already Canceled Sunday Due to Winter Storm
"I can tell you from having spent the night on campus here that the DFW area is a little bit different. And, let's face it, DFW is big in our operation. Almost a third of our team members reside in the area," he explained in the call. "Conditions here are still [like] a skating rink. And I'm super proud of what our team has done in terms of getting the operation back. We're trying our best to make sure that we cancel in front and do that in a way that gives customers the most advanced notice. But there's no mistake. DFW is still in, the sick of it, and we've gotta, thaw out a little bit today."
American's 100th Anniversary
Before opening it up for questions, Isom sought to provide an optimistic look ahead, especially with the airline celebrating its 100th anniversary on April 15.
"We invented the first reservation system and the first revenue management system. The first airport lounge, and the first airline loyalty program, which continues to lead the industry today," he said. "From our humble beginnings as a mail carrier between Chicago and St. Louis, today, American Airlines is a premium global airline that connects more of the U.S. to the world, powered by a proud team of over 130,000 aviation professionals unmatched in talent and spirit, with a proven ability to adapt, innovate, and always strive for better."