APA News Digest

July 26, 2024

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In This Edition ...

Food, Fun, and Fellowship at Oshkosh

The fellowship our pilots are enjoying at EAA AirVenture Oshkosh this week extends between unions. CA Anne Worster, the United MEC Chair at ALPA, invited APA’s contingent to dinner on Wednesday. She’s pictured with APA Family Awareness Committee Chair CA Jerry Gemma, APA Professional Standards Committee Chair CA Pat McGinn, and FO Melissa Monahan, Deputy Chair of the APA Family Awareness and Communications committees. We look forward to continuing to work together to benefit all airline pilots.

APA will host two more events before the world’s largest aviation gathering wraps up on Sunday. There will be a pizza party from 1700 to 1900 today and a Tex-Mex dinner from 1700 to 1900 on Saturday. If you will be in Oshkosh, here’s where to find our hospitality area.

Special Open Enrollment Begins Aug. 1

Aug. 1-15 will be a special open enrollment period for two of APA’s benefits plans, Pilot Mutual Aid (PMA) and the Supplemental Medical Plan (SMP). For more information, please review the FAQs for each plan:

Where to enroll: Click here to access the Benefit Elect enrollment portal. Your Benefit Elect username is your employee ID number. If you do not remember your Benefit Elect password, click the portal’s “Log In Instructions” link.

With custom-tailored benefit plans that fit your specific needs throughout your career and into retirement, APA is designed with you in mind. Only APA provides members with custom-tailored benefit plans that fit your specific needs, flexibility to do what needs to be done when it needs to be done, and an unmatched level of independence and care.

For more details, watch this video featuring Director of Benefits Marcy Scott.

Any questions? Contact the APA Benefits Department at benefits.sec@alliedpilots.org.

Summer Statistics and Updates

This is a new message from the APA Scheduling Committee.

TTS enhancement continues to be a priority for the Scheduling Committee. Progress has been made even with the company’s commitment to Contract 2023 implementation. We continue to engage with our company counterparts on improvements and functionality.

Notable stats from June:

  • Highest number of TTS transactions ever.
  • Highest number of PVDs used (facilitated by trading).
  • Record low sick usage. (If pilots are trading, no need to use sick time.)

July trading is following on the same trajectory.

Our first three TTS runs for the August bid month have seen 2,900 awarded trades, with an average participation rate of 36% across all bid statuses. Please reach out to the Scheduling Committee with any questions on ballot building or run history.

The Scheduling Committee is available to our pilots for help with anything that they can bid for: vacancy, vacation, TTS, DOTC, CQT, TDY, MBE, and PBS. The Scheduling Administrators are available from 0800 to 1700 Central on weekdays, and the committee’s pilot volunteers are available around the clock: CMTE-Scheduling@alliedpilots.org or 817-302-2321.

AAL Reports “Bronze Medal” Earnings

This week, AAL management reported second quarter earnings that lived up – or lived down, rather – to this forecast from JP Morgan airlines analyst Jamie Baker: “The company (AAL) likely remains on the bronze medal podium when it comes to Big 3 margins.”

During the earnings call, CEO Robert Isom disclosed that the failed sales and distribution strategy reduced revenue by $750M for the first half of the year, and management expects another $750M in lost revenue for the second half of the year, for a total 2024 impact of $1.5B.

Here are some excerpts from the AAL filing to the Securities and Exchange Commission:

  • “The company’s previous sales and distribution strategy will continue to impact its revenue performance and earnings through the remainder of the year.”
  • “The company expects its third-quarter 2024 adjusted earnings per diluted share to be approximately breakeven.”
  • “The company now expects its full-year 2024 adjusted earnings per diluted share to be between $0.70 and $1.30.” (~$460-$854M)
  • “The company reduced total debt by approximately $680 million and is now more than $13 billion, or approximately 87%, toward its goal of reducing total debt by $15 billion by the end of 2025. The company ended the quarter with approximately $11.7 billion of total available liquidity.”

Pre-Tax Profit (excluding special items) 

  • DAL: $2 billion
  • UAL: $1.7 billion
  • AAL: $1.04 billion

Free Cash Flow (FCF) 

  • DAL: $1.3 billion
  • UAL: $1.9 billion
  • AAL: $850 million

Margins 

2Q24

Pre-Tax

Op. Margin

EBITDAR

DAL

13.0%

14.7%

18.2%

UAL

12.1%

13.1%

17.9%

AAL

7.3%

9.7%

15.7%

As for the $1.5B worth of lost revenue this year, Forbes reported that Delta and United have been coy in discussing whether American’s loss benefitted them. But APA spokesman CA Dennis Tajer said it clearly went to the rival carriers’ coffers.

“We don’t need Nancy Drew to determine where the $1.5 billion went,” he said.

Airline Analysts on AAL: “Disappointing,” “Discouraging,” and “Uninspiring”

You can click here for an in-depth account of Wall Street analysts’ reactions to the AAL earnings call, but here are a few excerpts:

  • Jamie Baker of J.P. Morgan: “We’d have to go back to the Arpey era (pre-dating both its merger and its bankruptcy filing) to identify an American earnings call as discouraging as Thursday’s. ... To paraphrase one investor, American’s call sounded disappointingly like ‘the old America West script but with meaningfully elevated costs,’ sentiment we can’t really push back on.”
  • Thomas Fitzgerald of TD Cowen: “We expect the airline’s commercial challenges (overexposure to domestic and LatAm, challenges with corporate travel, underexposure to long-haul international) to weigh on margins. Driving significant changes in strategy will require years of elevated CAPEX investments and diminish the company’s prospects for generating consistent free cash flow.”
  • Conor Cunningham of Melius: “American has been crystal clear that adjustments to the distribution strategy that cost them $750 mm in 1H are underway. But a further review of the business is needed as they lag Delta and United on margins. Investor patience is very thin at this point and additional adjustments are needed for a credible margin recovery story to return.”

Look for an Updated Logbook in the Coming Months

This is a new message from the APA IT Steering Committee.

Thanks to the hard work of FO Ken Lambert, along with many others, an updated Logbook will be launched this fall with a revamped user interface and design, along with new features, integration, and attention to detail.

New features will include:

  • Convenient access to your flying
  • Table and calendar view
  • Sequence grouping of flying
  • Running convenient totals
  • Sequence- and flight-level detail of flying with integrated map overview
  • Handy filters to search and display data
  • Multiple export options
  • Integrated statistics visualizations

We are also diligently working to update and improve our previously released products and features and are excited to showcase them in the coming weeks. Here are just a few to look forward to:

  • Trips Marketplace: Will include drops, shared sequences, last live leg.
  • APA Calendar Sync: Supporting other calendars and an increase in the number of data items that can be synced.
  • Sequence History: No more taking a snapshot of your HSS! EVERY update and change will be available to browse and access.
  • Open Time Detected Log: A history of all open time to allow for further analysis of your MyOT alerts using the reasons report functions.

Again, thank you to FO Lambert, CA Vince Trevarton, the other pilots on the IT Steering and Operational Analysis committees, and the staff in our APA IT Department for the hard work put in by all.

As always, please keep your valuable feedback coming! It only helps to improve the services provided to our pilots.

Check Out Our New Military Guidebook

This is a new message from the Military Affairs Subcommittee.

On Monday, the Military Affairs Subcommittee conducted a town hall via Zoom and briefed the Board of Directors in person.

During the Board briefing, the subcommittee hosted FBI and Homeland Security agents to give a brief update on international travel concerns and the best paths to stay safe once you leave American soil. Most of the tips and pointers can be found on the DHS or FBI websites or the Security Committee’s page on AlliedPilots.org. Bottom line: Once you leave American soil, be prepared for anything, stay conservative in your actions, and be alert to your surroundings.

The Zoom town hall began with FO Christine Simpson providing an overview of the new APA Military Guidebook. We believe the document is a one-stop shop for all military-related questions a pilot might have while serving our country and flying for AAL. The Guidebook can now be found on the Military Affairs page on AlliedPilots.org (Documents > General). The town hall also covered the high points we have seen over the past year in a PowerPoint presentation that will be posted on our webpage.

Due to a technical issue with Zoom, we were unable to record the session. We will host another town hall next spring to highlight ongoing issues our pilots face.

Stay safe flying, and reach out to us with any concerns at militaryaffairs@alliedpilots.org.

“Booking in Progress” Guidance Has Not Changed

This is a new message from the APA Hotel Committee.

The last week has been rough! No doubt, many of you have felt the weight of putting our operation back together on your shoulders. Many crews have had difficulty getting hotels assigned due to lengthy waits getting their sequences repaired by Crew Tracking and lengthy waits on hold with the Hotel/Limo Desk.

APA’s position has not changed. We recommend that you DO NOT DEPART on your last leg to a layover when “Booking in Progress” shows in your CCI Hotel/Limo information, unless you receive confirmation that you have lodging, or you are directed to depart by a Chief Pilot. “Booking in Progress” is a placeholder when no reservation exists. It does not necessarily indicate someone is actively working on booking you a room.

Multiple crews have not followed this guidance lately and written to us to tell us it was a mistake. Crews who have waited to secure lodging have experienced lengthy waits after their last leg of the day. Some crews had the misfortune of arriving at a sold-out market only to learn that they were stuck with no hotel options. Had they insisted a room be booked prior to departure, this would not have happened.

Although it’s not required, you may want to advise the Company of the reason why you aren’t departing and advise that you will be prepared to depart as soon as lodging is confirmed. If you can’t get through to the Hotel/Limo Desk, try the Duty Pilot, or consider sending an ACARS or HISEND message. Do not let the issue distract you from your preflight duties. Take care of yourself; take care of your crew.

For more information, check out the recently updated QRH – Quick Reference Hotels document. This resource answers 99 percent of all hotel, transportation, and layover questions while providing helpful solutions. Suggestion: Download this QRH document to your AA iPad for easy access in the future.

Concourse Conversations at DFW on July 31

This is a new message from the National Communications Network.

Along with the DFW Domicile Officers, we will host Concourse Conversations from 0900 to 1500 on July 31 outside the new Terminal A Operations. These events provide an opportunity for members at large to deliver feedback directly to union volunteers. We will be collecting feedback to send to the Board of Directors and National Officers. If your schedule allows, please stop by to chat.

Pigs of the Week

APA commends American Airlines’ hardworking aircraft maintenance technicians for their outstanding work. We believe they are the best in the business. When repetitive problems do arise, they’re often due to managerial decisions that fail to properly prioritize tasks and to management’s decision to outsource a significant portion of the airline’s maintenance to offshore, third-party repair stations.

  • Since July 7, the Digital Flight Data Recorder on A321 aircraft 799 has been written up 11 times, been on MEL three times, and been out of service seven times. It was most recently signed off on July 25.
  • Since June 13, the Flight Control ELAC (Elevator and Aileron Computer) 2 faults on A321 aircraft 553 have been written up 15 times and been out of service seven times. It was most recently signed off on July 23.

APA Welcomes Leadership Class

This is a new message from the APA Membership Committee.

Click the image for a closer look.

On July 24, the APA Membership Committee hosted a casual dinner for the following pilots who were in Fort Worth for American Airlines’ Professionalism, Leadership, and Mentoring class: Robert Banks, Erik Breault, Brett Cavitt, Matthew Costa, Matthew Creed, Alex Durr, Todd Eysenbach, David Hegedus Jr., Mohammad Khattab, Scott Lee, Brian Lietzke, Cole Linburg, Clayton Malphrus, Joseph Mcbrearty Jr., Brandon McIntire, Joseph Miklasz, Kyle Morris, Michael O’Dea, Kareem Omar, Nicholas Osburn, Juan Carlos Pallares, Christine Rupert, Janelle Setta, and Ronald Sheppard.

APA Medical Minute – Cataract Surgery

In the latest edition of the APA Medical Minute, APA Medical Advisor Tina Smith provides guidance regarding cataract surgery.

Domicile Events

Visit AlliedPilots.org/Calendar to RSVP for any of these upcoming domicile events:

Domicile Elections

Pilots based at CLT, LGA, and MIA will elect a Chair and Vice Chair to represent each domicile for three-year terms that will begin on Nov. 1.

These candidates’ resumes will be emailed (and posted on the Elections page on AlliedPilots.org) on Aug. 6:

CLT Chair
CA Heather Ducimo Boulanger
CA Erik DeWinne
CA Casey Granger

CLT Vice Chair
CA Casey Granger
FO Hickory Ham
CA Michael Pfeifer
FO Tammy Smart

LGA Chair
CA Lawrence Cutler
CA David Hines
CA Mark Lokey
CA Jeff Kerr

LGA Vice Chair
CA David Hines
CA Michael Phelan
CA Sam Pool
CA James Scanlan
CA Robert D. White

MIA Chair
CA Thomas Copeland
CA Andrew Weingram
CA Jay Wilhelm

MIA Vice Chair
CA Scott Craig
FO Jamie Funderburk
FO Steven Mann
CA Ken Wells
CA Anne Witcher

When there are four or more candidates for a domicile position, the APA Constitution and Bylaws calls for a Nomination Round that winnows the field to three. The Nomination Round voting period will be open from 0100 Eastern on Aug. 7 until 0101 Eastern on Aug. 29. The deadline for receipt of mailed paper ballots is 1100 Eastern on Aug. 29.

For more information, visit the Elections page on AlliedPilots.org.

Week in Review

Here are some recent messages you may have missed.

Are You Willing to Serve?

Each of these national committees or subcommittees has the indicated number of vacancies:

  • Aeromedical Committee (0)
    • Disabled Pilot Awareness Subcommittee (3)
    • Human Intervention Motivation Study Subcommittee (1)
    • Pilot Occupational Health Subcommittee (2)
    • Project Wingman Subcommittee (3)
  • Captain’s Authority Committee (3)
  • Communications Committee (0)
    • National Communications Network (7)
  • Grey Eagles Liaison Committee (1)
  • Scheduling Committee (4)
  • Training Committee (5)
    • Checkmate (1 on 777)

If you would like to serve on one or more of these committees, visit the Member Engagement Portal.

Professional Standards FAQs

Why isn’t management part of the Professional Standards Committee?
This is a peer-to-peer program. Correcting behavior through peer engagement and awareness offers a potentially permanent solution. Management fully supports the work of the Professional Standards Committee by providing vast resources and thoughtful input toward improving the process.

To read all of the FAQs, click here.

Professional Standards’ 24/7 hotline: 817-402-2181

If You’re 50, Join The Grey Eagles

Are you a pilot for American Airlines, at least age 50, active or retired? Please join The Grey Eagles for food, fun, and fellowship. We offer cruises, conventions, monthly luncheons, retirement dinners, professional mentoring, and assistance to surviving spouses – all for a one-time lifetime fee.

Pilot Job Fairs and Future Pilot Seminars

Future & Active Pilot Advisors’ next Pilot Job Fair and Future Pilot Seminar are scheduled for Aug. 23 at IAD followed by Sept. 20 at TPA. Click here for more information.

Industry News

For more about what’s happening in the industry, be sure to visit the Industry News page on AlliedPilots.org.

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