American Air to Cut Summer 2021 Overseas Capacity by 25%

American Airlines will cut its summer 2021 international capacity by 25% due to lower demand for certain leisure destinations.
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American Airlines  (AAL) - Get Report expects to cut its summer 2021 international capacity by 25% versus 2019 as the coronavirus sharply hurt demand for flights. 

The carrier said it would also discontinue several popular leisure destination routes on which it expects decreased demand.

“American has spent the past few years right-sizing its international network, discontinuing underperforming routes while adding leisure destinations like Dubrovnik and Prague,” said Brian Znotins, American’s vice president of network planning. 

“Now, as demand has significantly diminished due to we have to be nimble, creating the network that our customers desire.”

The company is canceling three transatlantic routes from both Charlotte Douglas and Philadelphia International as well as five underperforming routes from Los Angeles International to destinations in Asia and South America. 

In a separate message the company also said it told its flight crew that it has as many as 8,000 more attendants than it needs and that it would offer more leave programs and a voluntary separation package to minimize the need for furloughs. 

“While we hope our customers continue returning to the skies in the coming months, the reality is that this pandemic has changed our business for years to come,” Jill Surdek, American’s senior vice president of flight service, said in a letter to employees Wednesday. 

“Things like less international flying, lower crew complements and fewer crew bases are part of our new reality.”

At last check American Airlines shares were 4% higher at $13.32. They've bounced 55% since touching a 52-week low in mid-May at $8.25.