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American finds $2.9 billion: more routes added
It's hard to see how the machinations of Wall Street affect the end consumer, sometimes. In the case of American Airlines and its recent pickup of $2.9 billion, you can draw a straight line from the money to the exit row.
The hefty infusion, a risky move because revenues are down and this is not a trivial amount of debt, has already prompted announcements of schedule changes ... for the better. American is planning to increase flying in New York, Chicago, Los Angeles, Dallas-Fort Worth and Miami, though there will be fewer flights in Raleigh/Durham and St. Louis. Look for 57 new daily flights at O'Hare, six more from JFK, two in Los Angeles and anther 19 in Dallas-Fort Worth.
The news comes at a time when most airlines are cutting back service as a way to control costs due to reductions in passenger traffic.
Since we've seen what fewer flights can mean – more crowded flights, less legroom and higher odds of getting stuck in a middle seat – the financial breathing room that American has gained could actually give you more actual breathing room the next time you fly. If American fill these extra seats (at the expense of your throwing up the armrest and claiming two), it will generate more revenue, which could turn into real growth. Maybe some of that cash will be used to bring back some amenities.