American Airline’s Fuel Per Average Seat Mile (2016-2021)

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This statistic highlights American Airline’s Fuel Per Average Seat Mile starting from the Q1 of 2016. Click here to know more about the statistic.
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This statistic highlights American Airline’s Fuel Per Average Seat Mile starting from the Q1 of 2016 to the latest.

American Airlines is the major holding of AMR Corp. The airlines serve customers worldwide. They provide passenger and cargo services across the world. They operate a fleet of more than 1500 aircraft. Its services are divided into mainline and regional. The mainline segment accounts for almost two-thirds of the company’s revenue, the remaining comes from regional and cargo services. The mainline segment runs around 900 aircraft and the regional service runs 600 aircraft. They operate flights to and from South America, Canada, Africa, Asia, Australia, and Europe.

Fuel costs are one of the major costs for an airline. Fuel per average seat mile is one way of measuring the efficient use of fuel. The Fuel per average seat mile is obtained by dividing the fuel costs by available seat miles. The fuel per average seat mile currently for American Airlines is $3.51 and has increased from $ 2.25 4 years ago.

The fuel per average seat mile for the regional segment was $0.34 in the first quarter of 2016. After this, it started increasing and went to $0.39 in the second quarter, $0.42 in the third quarter and $0.47. The cost continued to increase in 2017 to $0.49 in the first quarter,$0.46 in the second quarter, $0.48 in the third quarter, and $0.57 in the fourth quarter. The cost increased to $ 0.60 in the first quarter of 2018, $0.64 in the second quarter, $0.67 in the third quarter, and $0.69 in the fourth quarter. The increase in 2019 was to $0.63 in the first quarter, $0.67 in the second quarter, $2.13 in the third quarter and $0.68 by the end of the year.

The fuel per average seat mile for the mainline segment was $1.58 in the first quarter of 2016 and then increased to $1.86 in the second quarter, $1.94 in the third quarter, and $2.03 in the fourth quarter. It further increased in 2017 to $2.18 in the first quarter, $2.10 in the second quarter, $2.15 in the third quarter, and $2.44 by the end of the year. The costs continued to increase in 2018 to $2.68 in the first quarter, $2.89 in the second quarter, $2.98 in the third quarter, and $2,86 by the fourth quarter. The fuel cost finally dropped slightly in 2019 to $2.59 in the first quarter, $2.76 in the second quarter, $2.03 in the third quarter, and $2.58 in the fourth quarter.

The fuel costs for the regional segment have been increasing constantly over the last four years. The costs have gone up each quarter as well. This is a big cause of worry for the company as their expenses are rising every year. The only positive from this data is that the fuel cost per average seat mile for the mainline segment started to reduce in 2019. The fuel costs are expected to go down in 2020 due to the reduced demand. The company needs to work on using its fuel more efficiently, not only to make profits but also to sustain the business.

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