By Dhirendra Tripathi
Investing.com – American Airlines (NASDAQ:AAL) shares fell a little over 1% after the Wall Street Journal reported that it would cut 950 flights, about 1% of planned trips.
American’s decision surprised the market given it comes at a time when demand for travel is booming as people break free from COVID-19.
The rebound in travel was putting a strain on the company’s operations and this has been done to put things back in order, the company statement said, according to Reuters.
American said the move would bring additional resilience and certainty to its summer operations.
"(We) feel these schedule adjustments will help ensure we can take good care of our customers and team members and minimize surprises at the airport," the statement said, Reuters said.
The airline said its cancellations were targeted at impacting the smallest number of customers "by adjusting flights in markets where we have multiple options for re-accommodation."
American is trying to avoid a repeat of its disastrous summer in 2019 when bad weather and a feud with the airline’s mechanics snarled operations, The Journal reported, citing an American executive.