American Airlines' Boeing 767s, 757s among 80 planes that won't fly again after the pandemic
Say "so long" to the Boeing 767s at American Airlines. And its 757s, too.
The early retirements were already acknowledged by the carrier, but now it is official that those planes have seen their last days carrying passengers for American.
Overall, the Fort Worth, Texas-based carrier has retired 80 Airbus, Boeing and Embraer jets from its fleet as the coronavirus pandemic continues to take a harsh toll on air travel. It has bid adieu to not only its 767s and 757s, but also to its Airbus A330-300s and Embraer E190s, American said Thursday. All four types are already parked and will not return to passenger service.
In addition, American is also removing 41 older small regional jets from its feeder fleet. All 19 of its Bombardier CRJ200s are gone, and it is retiring 22 of its 46 Embraer ERJ-140s.
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“The whole point of simplifying fleets is to drive the cost structure [down] to where it needs to be," said American chief financial officer Derek Kerr during the carrier's first quarter earning call on Thursday.
The airline reported a $2.9 billion pre-tax loss, or a $2.2 billion net loss, during the three months ending in March. Passenger traffic fell by nearly 18% year-over-year, while the total number of passengers carried dropped by nearly 16%.
Airlines around the globe face an unprecedented cash crunch amid the pandemic. Faced with near zero revenues, carriers are digging into their reserves to pay aircraft mortgages and other fixed costs while they cut capacity and — at least outside of the U.S. — furlough tens of thousands of staff.
The latest data from trade organization Airlines for America (A4A) shows flights in the U.S. carried an average of just 17 people during the week ending April 28. Demand for future travel, measured by new bookings minus refunds, was down 97% year-over-year during the week ending April 19.
Related: American will require masks for flight attendants, unveils other anti-coronavirus measures
Cutting costs is the name of the game for American management during the pandemic. In addition to the fleet changes and related capacity cuts, nearly 39,000 of the airline's staff have taken early retirement packages, unpaid leave or have reduced their hours.
American has also accepted $5.8 billion in payroll assistance from the federal government, which will cover staff compensation and benefits through at least Sept. 30.
Still, American is burning an average of $70 million in cash daily. The carrier aims to slow the bleeding to just $50 million a day by June.
Related: American accelerates Boeing 757, 767 retirements due to coronavirus
Other airlines face the same dire circumstances. Delta Air Lines also hopes to cut its cash burn to about $50 million a day by May, while Southwest Airlines hopes to staunch it to just $30 million to $35 million a day.
American may cull its fleet further. It is considering retiring older models of the plane types it plans to keep around, which could affect some Airbus A320s and 42 Boeing 737-800s, said Kerr. The airline may also remove its 15 Airbus A330-200s, however, these aircraft are younger and mortgaged complicating any potential retirement decision.
The carrier is moving forward with work adding seats to many of its Airbus A321s and 737-800s, even with its post-pandemic fleet in flux. The effort, dubbed "Project Oasis," adds up to nine seats for 190 to the A321s, and 12 seats for 172 to the 737s.
"We all expect the recovery will be slow and the demand for air travel will be depressed for some time," said American CEO Doug Parker during the call. "Difficult decisions lie ahead of all of us."
Related: I flew one of the last American Airlines 767 flights before its retirement
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.