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American Airlines (AAL) to Discontinue Flights to 3 Cities
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American Airlines’ (AAL - Free Report) management has decided to stop operating flights to Columbus, GA, Del Rio, TX and Long Beach, CA, in the spring of this year. Flights to these three cities are operated by AAL’s regional partners. The pilot shortage has hit the regional partners harder than the rest.
Management has cited a pilot shortage and soft demand on those routes as reasons behind the decision. Following their withdrawal from the abovementioned three U.S. cities, the total number of markets exited by this Fort Worth, TX-based carrier since the commencement of the pandemic is eighteen.
Per an AAL spokeswoman, "Due to soft demand and the regional pilot shortage affecting the airline industry, American Airlines has made the difficult decision to end service in Columbus, Georgia, with the last day of operations scheduled for April 3, 2023". We’ll proactively reach out to customers scheduled to travel to offer alternate arrangements."
A pilot shortage has gripped the U.S. airline industry big time. During the peak of the pandemic, when air-travel demand dropped dramatically, airlines urged their employees to take up early retirement packages. As a result, with the stronger-than-expected rebound in air travel demand, they are shortstaffed.
Due to this staffing crunch, many cities in the United States have lost service from airline heavyweights like AAL and Delta Air Lines (DAL - Free Report) . Following the exit of AAL, Delta will reportedly be the only carrier to operate flights at the Columbus airport.
Delta will kickstart the fourth-quarter 2022 earnings season for airline companies on Jan 13. Upbeat air travel demand is expected to have aided DAL’s fourth-quarter performance. DAL currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Transportation sector may also consider Scorpio Tankers (STNG - Free Report) , which also flaunts a Zacks Rank #1.
Scorpio Tankers is engaged in the seaborne transportation of refined petroleum products via global shipping markets. Efforts to upgrade its fleet are commendable. An uptick in voyage revenues with the rise in passengers augurs well for this shipping stock, flaunting a Zacks Rank #1 at present.
STNG stock has soared 285% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2023 earnings has moved 36.2% north. STNG currently has a Growth Score of B.
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American Airlines (AAL) to Discontinue Flights to 3 Cities
American Airlines’ (AAL - Free Report) management has decided to stop operating flights to Columbus, GA, Del Rio, TX and Long Beach, CA, in the spring of this year. Flights to these three cities are operated by AAL’s regional partners. The pilot shortage has hit the regional partners harder than the rest.
Management has cited a pilot shortage and soft demand on those routes as reasons behind the decision. Following their withdrawal from the abovementioned three U.S. cities, the total number of markets exited by this Fort Worth, TX-based carrier since the commencement of the pandemic is eighteen.
Per an AAL spokeswoman, "Due to soft demand and the regional pilot shortage affecting the airline industry, American Airlines has made the difficult decision to end service in Columbus, Georgia, with the last day of operations scheduled for April 3, 2023". We’ll proactively reach out to customers scheduled to travel to offer alternate arrangements."
A pilot shortage has gripped the U.S. airline industry big time. During the peak of the pandemic, when air-travel demand dropped dramatically, airlines urged their employees to take up early retirement packages. As a result, with the stronger-than-expected rebound in air travel demand, they are shortstaffed.
Due to this staffing crunch, many cities in the United States have lost service from airline heavyweights like AAL and Delta Air Lines (DAL - Free Report) . Following the exit of AAL, Delta will reportedly be the only carrier to operate flights at the Columbus airport.
Delta will kickstart the fourth-quarter 2022 earnings season for airline companies on Jan 13. Upbeat air travel demand is expected to have aided DAL’s fourth-quarter performance. DAL currently carries a Zacks Rank #3 (Hold).
Zacks Rank & Another Pick
AAL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Transportation sector may also consider Scorpio Tankers (STNG - Free Report) , which also flaunts a Zacks Rank #1.
Scorpio Tankers is engaged in the seaborne transportation of refined petroleum products via global shipping markets. Efforts to upgrade its fleet are commendable. An uptick in voyage revenues with the rise in passengers augurs well for this shipping stock, flaunting a Zacks Rank #1 at present.
STNG stock has soared 285% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2023 earnings has moved 36.2% north. STNG currently has a Growth Score of B.