Pilot Scheduling Error Could Cost American Airlines $10 Million: JPMorgan - NBC 5 Dallas-Fort Worth

Pilot Scheduling Error Could Cost American Airlines $10 Million: JPMorgan

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    NEWSLETTERS

    American Airlines, Pilots Work Out Agreement on Dec. Flights

    American Airlines is assuring passengers their holiday travel plans are safe. On Friday the airline said it had resolved a scheduling issue that left thousands of upcoming flights without pilots. (Published Friday, Dec. 1, 2017)

    A prominent airline analyst says American Airlines will pay about $10 million to fix the pilot-scheduling mix-up that left thousands of unstaffed flights around Christmas.

    J.P. Morgan Chase analyst Jamie Baker issued the estimate Monday. American didn't comment immediately.

    American reached a deal late last week to pay pilots double wages for working some flights that were short-staffed after an error in the crew-scheduling system let pilots drop assignments even if no backups were available.

    Baker said the settlement will deflect bad publicity and passenger concern over possible flight cancellations. He's even slightly raising his estimate of American's fourth-quarter earnings per share based on strong ticket demand.

    Other analysts are downplaying impact of the mistake too. Helen Becker of Cowen is criticizing the pilots' union for publicizing the scheduling error.