Must-know: An overview of the American Airline Group (Part 4 of 12)
American Airlines’ position in the international market
American Airlines Group (or AAG) derives 57% of its revenue from domestic operations. In the international market, out of the remaining 43%, revenue from the Latin American region constitutes 23%. American (AAL) has a relatively lower revenue base from the Pacific region, 4.9%, compared to Delta’s (DAL) 10.8% and United’s (UAL) 15.1%. The other low cost competitors, Southwest (LUV) and JetBlue (JBLU), are concentrated in the domestic market.
AAG’s domestic revenue growth was 7.6% in 2013. In the international market, the Atlantic region recorded the highest growth of 10% followed by a 8.2% growth in the Latin American region while the Pacific region revenue decreased by 1.6%.
In the international market, among the three legacy carriers, AAG has the highest capacity in Latin America, 53%, followed by United (UAL) with a 26% share and Delta (DAL) with a 21% share in available seat miles. In the Atlantic region all three have almost equal shares. In contrast, in the Pacific region American has the lowest share.
Browse this series on Market Realist:
- Part 1 - Overview: American Airlines Group Inc.
- Part 2 - Must-know: U.S. airline industry consolidation and restructuring
- Part 3 - Why the American-US Airways merger was conditional
- Investment & Company Information
- Sectors & Industries
- American Airlines