As U.S. carriers
begin service to Havana next month, American Airlines says Cuba sales are going
everybody is finding it a little difficult to sell in Cuba," Don Casey, the
carrier's senior vice president of revenue management, said during the airline’s
third-quarter earnings call Thursday.
flights from Miami to the Cuban destinations Camaguey, Santa Clara, Cienfuegos,
Holguin and Varadero in September. The carrier’s service from Miami to Havana (four
flights per day) and Charlotte to Havana (one per day) launch on Nov. 28 and
Nov. 30, respectively.
specific, Casey said restrictions in Havana are slowing sales.
CEO Doug Parker said a gradual build-up for the carrier's Cuba service was
"We're in this
for the long haul. This is not something we didn't expect. It's a new market,"
net income of $737 million for the third quarter, down 56% from last year. Much
of the difference was the result of American paying $452 million in income
taxes compared with just $16 million last year. Excluding one-time
special items, the carrier earned $933.
third-quarter operating revenue of $10.6 billion, down 1.1% from last year. The
decrease was driven by a 0.6% decline in the average price paid for a mile of
operating expenses during the third quarter increased 5.2%, to $9.16 billion,
as salary increases and employee profit sharing brought a 15.3% jump in labor
costs. A 12.6% drop in fuel expenses countered that jump.
earnings per share during the third quarter of $2.80, beating analyst estimates
by $1.23, according to Seeking Alpha.