American Airlines Group Inc (AAL)

[dmik]

Doug talks Airline sector drops :(

American Airlines Group Inc Chief Executive Doug Parker voiced concern on Sunday about the risk that capacity growth among airlines could depress profits, but told Reuters that in contrast with past cycles, the rise in capacity “feels different.”

Asked about investor concerns that capacity increases at U.S. airlines are starting to exceed growth in demand, Parker said, “the real question is, is this a one-time catch up for fuel prices being lower or is this airlines behaving like airlines used to and just increasing capacity because times are good.

“I don’t know if we know the answer to that yet,” Parker said on the sidelines of an International Air Transport Association (IATA) global airlines conference in Miami.