American Sees $200 Million Revenue Hit From January Crash

American reported a revenue hit from January’s deadly midair collision involving a CRJ-700 and Black Hawk helicopter near Washington. All 67 on board both aircraft were killed in the accident, which remains under investigation.

The airline’s CEO, Robert Isom, said the accident impacted its revenue by roughly $200 million in the first quarter. PSA Airlines – which was operating flight 5342 – is a wholly owned subsidiary of the Fort Worth, Texas-based carrier.

“Before moving on, I want to take a moment to acknowledge the tragedy and pay tribute to the lives lost in the accident. We’re supporting the families and loved ones through our Office of Continued Care and Outreach, which we established within a week of the accident,” Isom said during the airline’s first-quarter earnings call on Thursday.

The airline is also working with the U.S. government on bolstering aviation safety, he added.

The airline reported a loss of $473 million during the first quarter, citing ongoing economic uncertainty.

Airport Traffic Changes

The Federal Aviation Administration has moved to restrict helicopter traffic near Reagan National Airport following the accident. Recently, the agency identified Las Vegas’ Harry Reid Airport as a similar “hotspot” with a mix of fixed-wing and helicopter traffic.

Isom said he’d like to see the FAA restrict this mix of traffic at other congested airports.

“That’s what we do to make aviation even safer,” he told CNBC. “… I think any big city [airport] is something we need to take a look at.”

The airline looks at data from “everywhere,” Isom continued, to enhance safety.

In February, Reagan National saw a 12% drop in passenger volume. The airport is a hub for American.

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Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.

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