The airline credits technology that lets planners adjust flight schedules based on factors including weather forecasts at major airports, crew schedules and passenger numbers on each flight.Īmerican said third-quarter earnings would be 85 cents to 95 cents per share, in line with expectations. On the travel front, American has reduced its cancellations compared with a miserable summer last year.
Wages for pilots in particular have been rising rapidly at smaller airlines to counter labor shortages that left them unable to operate all their flights.
Some industry officials believe that higher wages will help big carriers like American, United and Delta by driving up costs at their low-cost and discount competitors, whose business model is based on keeping costs as low as possible. Those and other tools are helpful, Raite said, “but the overall cost structures from a labor perspective are driving fares us.”
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