American Airlines Says Scheduling Glitch Will Cost Millions

Alan Scaia
July 12, 2018 - 6:42 am
American Airlines

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DALLAS (1080 KRLD) - American Airlines says a scheduling problem at a regional carrier last month will cost the airline $35 million.

The issue at PSA Airlines led to 3,000 cancellations over a week in June. PSA Airlines had a problem with its scheduling program, causing the cancellations.

American sent a letter to investors ahead of its second quarter earnings report later this month. The Fort Worth-based carrier says it may need to increase fares because of increased fuel costs.​ American says revenue will increase between one and three percent this year.

After the announcement Wednesday, stock in American dropped eight percent. Since the beginning of the year, American stock has dropped from $59.08 to $35.96.

Online: Read the Second Quarter Investor Relations Update