American Airlines experience a significant decline in the customers demand due to recession. American’s traffic dropped to 13.5 percent in February 2009, compared to previous year. The bookings and expectations are also running behind the last year’s pace. Bookings for the next four months are lesser by 2.5 percent compared to the bookings in 2008. International bookings declined by 4.5 percent.
It is not the case with only American Airlines. All the major US carriers like American Airlines, Delta Air Lines, Continental Airlines, and Alaska Airlines are experiencing the same situation.
To comply with the present situation, American Airlines announced that it is going to cut US flying by 9 percent.
AMR is another industry facing the woes of wailing traffic. In order to catch a break from falling oil prices, it planned to decrease its expenditures on fuel by $3.5 billions lesser than it spent a year ago.
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