American Airlines has made no plans thus far to reduce U.K. service in the wake of the Brexit vote, a decision that differs from competitors United and Delta.

“We’ll react as things happen in the market,” AA president Scott Kirby said during the company's Q2 earnings call Friday. He noted that U.K. capacity decisions would be made in conjunction with joint venture partner British Airways. 

American’s approach is markedly different than Delta’s and United’s. Last week, Delta said it will cut its service between the U.S. and U.K. by 6% for the upcoming winter season due to an expectation that fewer Brits will take vacations to the U.S. as they cope with the weakened pound.

This week, United announced it would suspend flights from Washington Dulles to Manchester for the winter, use smaller aircraft to fly from Dulles to Heathrow and reduce its Newark-Birmingham service by a third.

Kirby said that in the first month after the Brexit vote, American’s U.K. bookings increased. He added that while Brexit could have a negative impact on travel to the U.K. in the long-term, he thinks its affect on American could actually be a positive over the next couple years while the U.K. figures out how to make its exit from the European Union.

“There’s a lot more consultants, bankers and lawyers that will be flying back and forth determining what the heck does this mean and what do we have to do,” he said. 

Scott spoke on the topic as American reported second-quarter net income of $950 million, a decline of 44% compared with the same period last year, though more than two-thirds of that $754 million difference is due to a $543 million tax provision American made this quarter as compared to just $15 million last year.

American recorded revenue of $10.36 million in the second quarter, off 4.3% from last year as ticket prices slumped due to increased competition and weakening foreign currencies. Still, the figure beat analyst expectations by $40 million. Operating costs for the airline were $8.6 billion in the second quarter, down 3.3%, due in large part to a 24.9% drop in fuel expenses.

American recorded earnings per share of $1.77 in the second quarter, beating expectations by 9 cents.


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