American Continues To Cut Flights, Loses Millions In Revenue

American Continues To Cut Flights, Loses Millions In Revenue

American Airlines today said it expects to complete inspections and return all 300 aircraft in its MD-80 fleet to service on Saturday. The inspections prompted the carrier to the cancel 922 flights today, 1,094 flights yesterday and 460 on Tuesday.

Meanwhile, American is enlisting a third-party firm to review the carrier's processes for complying with airworthiness directives. American Airlines chairman and CEO Gerard Arpey, during a call with media today, said the financial hit of the service disruptions "will be in the tens of millions of dollars. Fortunately we have worked hard for a lot of years here to build our liquidity base and pay down a lot of debt."

Arpey noted 123 of the MD-80 aircraft had returned to service, while the others are "being worked round the clock," adding, "It will take us several more days to get us up to speed and I can't anticipate any other hiccups." The carrier said it continues to accommodate passengers and offer refunds for cancelled flights.

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