The Fort Worth-based carrier this week revealed that it’s planning for a 1.5-point reduction in its first-quarter capacity guidance because of the winter storm.
FORT WORTH, Texas — This article was originally published in the Dallas Business Journal. Read the original article and more business content here.
American Airlines Group Inc. expects a revenue hit of up to $200 million from Winter Storm Fern, which would rank among the most significant weather-related disruptions in company history.
The Fort Worth-based carrier this week revealed that it’s planning for a 1.5-point reduction in its first-quarter capacity guidance because of the winter storm that has gripped much of the country for the past few days, resulting in a $150 million to $200 million impact on the top line. The airline confirmed the storm caused more than 9,000 flights to be cancelled.
The figure puts a hard financial cost on the storm and underscores how the weather has impacted operations at North Texas companies.
“The impact of the storm is as significant as we’ve ever seen at American,” CEO Robert Isom said Jan. 27 on an earnings call, as the company was also reporting fourth-quarter and year-end earnings.
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