APA News Digest

Dec. 7, 2024

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In This Edition ...

“I’m Back Because of Compass”

Hired by American Airlines in 2001, LAX-based FO Keith Chikasawa was furloughed later that same year, and ultimately was out for 22 years through a combination of furlough, personal leave, and military leave. When he prepared to return to work at American Airlines last year, he realized he needed help, and the APA Compass Project stepped in. “If it weren’t for them, I don’t know where I would have been,” he said. “Compass … will open your eyes to what’s possible.”

Whatever challenges you find yourself facing, APA can help through Project Wingman, the Compass Project, the Sudden Grief Response Program, our aeromedical team – including the APA Medical Advisors and the programs the Aeromedical Committee offers – and the many other peer support programs APA provides.

Remember the resources that are available to you as a member of the APA family. We’re here for you, and we will provide the support you need to get through whatever you’re experiencing.

Special Election Period for VPAI

This is a new message from the APA Retirement and Benefits Committee.

This week, the company provided an update to the benefit enrollment related to Accidental Death and Dismemberment (AD&D).

During Annual Enrollment for 2025 benefits, the coverage level for company-provided AD&D was incorrectly communicated to be $750,000. The correct amount is $10,000 in accordance with Section 5.C.1. of the 2023 Collective Bargaining Agreement.

Because this is a significant difference in coverage, the company is allowing pilots to elect additional Voluntary Personal Accident Insurance (VPAI) for 2025. You will have a special election period from 0001 Central on Dec. 11 until 2359 Central on Dec. 18.

To complete your election, visit the American Airlines Benefits Service Center via Jetnet or my.aa.com and click on the VPAI banner at the top of the home page.

If you take no action or decline VPAI during the special election window, your company-paid AD&D coverage for 2025 will be $10,000 and you will be unable to elect additional VPAI until Annual Enrollment for the 2026 plan year, unless you experience a qualifying life event. Your AD&D coverage for the remainder of 2024 will remain unchanged.

Questions related to this issue can be directed to the AA Benefits Service Center between 0800 and 1700 Central, Monday through Friday.  

New Hotels for January

This is a new message from the APA Hotel Committee.

  • FRA: Mercure Hotel Frankfurt will be an additional hotel in Frankfurt.
  • PSP: Renaissance Palm Springs Hotel will replace our incumbent property for both long and short layovers.
  • PWM: Sheraton Sable Oaks will replace our incumbent short hotel.

For more information, check out the QRH – Quick Reference Hotels document. This resource answers 99 percent of all hotel, transportation, and layover questions while providing helpful solutions. Suggestion: Download this QRH document to your AA iPad for easy access in the future.

AAL and Citi Reach New Card Agreement

This is a new message from the APA Investor Relations Committee.

This week, American Airlines and Citi agreed on new terms of their co-branded credit card partnership.

“American presently expects cash remuneration from its co-branded credit card and other partners to grow by approximately 10% annually,” management said in its filing with the Securities and Exchange Commission. “For the twelve months ended September 30, 2024, American’s cash remuneration from its co-branded credit card and other partners was approximately $5.6 billion. As remuneration from American’s co-branded credit card and other partners approaches $10 billion per year, annual pre-tax income is projected to benefit by approximately $1.5 billion, compared to 2024.”

Here are highlights of Wall Street analysts’ commentary on the deal:

  • “The current base and 10% growth target implies 6 years to achieve $10BB per year, or in the 2030s (vs DAL’s target to reach ~$10BB of remuneration via its AMEX co-branded cards before 2029).” — Sheila Kahyaoglu of Jefferies
  • “While we don't explicitly model remuneration, Other Revenue ($2.78BB YTD, of which $2.36BB was Loyalty revenue - marketing services) grows at a 6% CAGR through 2027 on our estimate, while total AAL Pre-tax income is up to $2.4BB in 2027e from $781MM, or a $1.6BB improvement.” — Kahyaoglu
  • “We believe that margins on such partnerships could be as high as 30% to 40% on an operating basis (as implied by the company’s disclosure today). We view this development and disclosure as a tailwind to American’s revenue and earnings outlook and similarly parallels current financials between American Express and Delta.” — Brandon Oglenski of Barclays
  • “What’s changed: 3 things. i) A credit card deal; ii) AAL is finally slowing its own growth in 1Q; and iii) more importantly, where overlap exists in 1Q25, industry supply across AAL’s network is down 1.3% YoY, and down 1.7% across the top 15% of its routes. ALK, JBLU, SAVE, and LUV are all cutting capacity across AAL’s network which in turn allows AAL to better manage revenue. Internationally, industry supply to Latin America, Europe, and the Pacific – incl Japan – remains tight through 1H25, hence our comfort on revenue execution on int’l.” — Dan McKenzie of Seaport
  • “Bottom line (on AAL) – A positive 4Q update and revised credit card economics with Citi are the driver of the stock this AM ( 10% as of writing). With the credit card economics now known, the question will turn to how much benefit will come from its change in distribution.” — Conor Cunningham of Melius
  • “At the same time, several airlines are now showing firm improvement on leverage, while American’s net leverage remains elevated ( 4x).” — Cunningham
  • “Cash remuneration from the co-branded card and other partners was ~$5.6B as of the TTM to 3Q24 (vs. >$7B in 2024 at Delta) and American expects it to grow ~10% annually (inclusive of 2025 despite the 2026 effective date of the new agreement). This sets it on the path to reach Delta’s long-term target of $10B by around 2030, at which time American expects the incremental (vs. 2024) pretax contribution to total ~$1.5B (vs. our last published 2024E pretax income of $1.5B).” — Savanthi Syth of Raymond James

AAL Updates “Improved” Q4 Guidance

This is a new message from the APA Investor Relations Committee.

This week, management also updated its fourth-quarter guidance in a filing with the Securities and Exchange Commission. Here are some excerpts:

  • “The pricing and revenue environment has continued to improve since the Company’s prior fourth-quarter guidance issued on October 24, 2024.”
  • “The Company now expects fourth-quarter TRASM (Total Revenue per Available Seat Mile) to be approximately flat to up 1% versus the same period in 2023.”
  • “The Company presently expects fourth-quarter CASM-ex (Cost per Available Seat Mile excluding fuel and net special items) to be up approximately 5% to 6%, above the midpoint of its prior guidance range, due in part to a higher accrual for profit sharing driven by higher anticipated earnings in the quarter.”
  • “Based on these updated assumptions, the Company now expects its fourth quarter adjusted earnings per diluted share to be between approximately $0.55 and $0.75, above the high end of the Company’s prior guidance range.” (assumes a diluted share count of 722.6 million for the fourth quarter of 2024)

Based on management’s disclosure of fourth-quarter earnings per share, that equates to adjusted earnings between $397 million and $541 million.

Our Recommended Reading List

This is a new message from the APA Aeromedical Committee.

In an effort to improve our members’ health, we have created a recommended reading list. Each month, we will highlight a book that has helped in the prevention of, treatment of, or recovery from an injury or illness, or has elevated a member’s education. Feel free to send your book recommendations to aeromed-committee@alliedpilots.org.

Do Hard Things

Steve Magness, a performance scientist who coaches Olympic athletes, rebuilds our broken model of resilience with one grounded in the latest science and psychology. In Do Hard Things, Magness teaches us how we can work with our body – how experiencing discomfort, leaning in, paying attention, and creating space to take thoughtful action can be the true indications of cultivating inner strength.

Disclaimer: This recommendation is for general informational purposes only and does not constitute the practice of medicine or other professional health care services. Always consult with your medical provider when making health care decisions.

APA Welcomes Leadership Class

This is a new message from the APA Membership Committee.

a group of pilots in a lobby

Click the image for a closer look.

On Dec. 4, the APA Membership Committee hosted a casual dinner for the following pilots who were in Fort Worth for American Airlines’ Professionalism, Leadership, and Mentoring class: Michael Africa, Jose Alvarado Victoria, Christopher Barnard, Karen Barnett, Graeme Brent, William Clarke, Thomas Collins, Raymond Crownhart, Charles Faith, James Ferguson, Javish Hernandez Rivera, Daniel Housley, Kevin Krause, Alejandro Langa, Thomas Lantz, Lauren Nalbandian, Stephan Nalbandian, Luis Ornelas, Xavier Rivera Colon, Kevin Robb, William Urling, and Daniel Vail.

Gone West

This is a new message from the APA Membership Committee.

We extend our deepest sympathies to the loved ones of these pilots, whose deaths we learned of in November: Lee Robinson, 77, on Dec. 18, 2023; Joe Plant, 77, on June 28; John Morgan, 91, Sept. 13; Mike Holland, 80, on Oct. 7; Edwin Johns, 80, on Oct. 11; Mike Mills, 78, on Oct. 22; John Conklin, 85, on Oct. 27; Fred Schneider, 85, on Oct. 28; Randy Nini, 72, on Oct. 29; Kevin Taggart, 75, on Oct. 29; Dan Hegeman, 76, on Oct. 31; Larry Ourada, 82, on Nov. 2; and Jerry Cook, 90, on Nov. 13.

Your LTD Support Team

Do you need support regarding long-term disability, Pilot Mutual Aid, or Pilot Occupational Disability? Contact the APA Benefits Department at 817-302-2140 or YourLTDSupport@alliedpilots.org. That email address goes to:

  • Tamara Elery, Senior LTD Administrator
  • Ashley Kurtz, Benefits Coordinator - Retirement/Disability Plans
  • Joanne Goldfarb, Manager - Retirement and Disability Plans
  • Marcy Scott, Director of Benefits

Using that email address will ensure that we can support you whether you are on disability, going out on disability, or have general questions.

The APA Benefits team supports the Retirement and Benefits Committee, the Aeromedical Committee’s Disabled Pilots Awareness Subcommittee, and the Benefits Review and Appeals Board.

APA Contract Minute – Sick if Needed

In the latest APA Contract Minute, Contract Compliance Committee Chair CA Jason Saxer answers this frequently asked question: “I am sick if needed. Will RAS only charge me sick if I am the last and only Qualified, Legal, and Available (QLA) pilot for a sequence?”

Do You Have an AME to Recommend?

APA’s Medical Advisors maintain a list of preferred aviation medical examiners whom they have worked with or have been recommended by other pilots. If you know of an AME who should be added to the list, please get in touch with the Medical Advisors via 817-302-2400 or medical-advisors@alliedpilots.org.

APA Medical Minute – Melanoma

In the latest edition of the APA Medical Minute, APA Medical Advisors Manager Marsha Reekie discusses melanoma, including its symptoms, treatment, and related FAA requirements.

You can watch previous Medical Minute videos on APA’s YouTube channel.

Positive Rate Episode 37: AA Ski & Snowboard Club

a group of pilots in a lobby

In the latest episode of APA’s “Positive Rate” podcast, Communications Committee Deputy Chair FO Melissa Monahan talks with FO Nathan Green about the American Airlines Ski & Snowboard Club. FO Green previously served as the club’s president.

Each episode of “Positive Rate” features various APA leaders and the subject-matter experts working on the membership’s behalf. The podcast is available through popular streaming services, including Apple Podcasts, Stitcher, and Spotify. You can search for “Positive Rate” or “Allied Pilots Association” on your platform of choice to subscribe and download. Your first opportunity to listen will be via AlliedPilots.org/Podcasts.

We welcome your feedback on this format. If you have a question or comment, please send it to Communications Director Gregg Overman via goverman@alliedpilots.org.

Domicile Events

a group of pilots in a lobby

APA President FO Nick Silva spoke to ORD pilots (above) and PHX pilots during their domicile meetings on Thursday and Friday, respectively.

Visit AlliedPilots.org/Calendar to RSVP for any of these upcoming domicile events:

Domicile Elections

BOS, LAX, and ORD pilots will elect a Chair and Vice Chair to represent each domicile for 42 months – from May 1, 2025, until Oct. 31, 2028. Pilots can submit themselves or others for nomination from Dec. 9 through Dec. 30. For more information, see the Elections page on AlliedPilots.org.

Are You Willing to Serve?

Each of these national committees or subcommittees has the indicated number of vacancies:

  • Aeromedical Committee (0)
    • Critical Incident Response Program Subcommittee (1)
    • Disabled Pilot Awareness Subcommittee (3)
    • Human Intervention Motivation Study Subcommittee (1)
    • Pilot Occupational Health Subcommittee (2)
    • Project Wingman Subcommittee (2)
  • Captain’s Authority Committee (2)
  • Communications Committee (0)
    • National Communications Network (2)
  • Economic and Financial Analysis Committee (1)
  • Grey Eagles Liaison Committee (1)
  • Information Technology Steering Committee (1)
  • Professional Standards Committee (1)
  • Training Committee (1)
    • Checkmate (1 on 777)

If you would like to serve on one or more of these committees, visit the Member Engagement Portal.

Week in Review

Here are some recent messages you may have missed.

Professional Standards FAQs

How do we add and who selects committee members?
The Domicile Officers are responsible for determining the number of and selecting the candidates for the domicile Professional Standards Committees. Typical volunteers possess qualities such as maturity, empathy, peer respect, tact, and strict adherence to standard operating procedures and protocols. The APA President selects the national committee members from an approved list of recommended candidates.

To read all of the FAQs, click here.

Professional Standards’ 24/7 hotline: 817-402-2181

Angel Tree at APA Headquarters

For more than 40 years, the Salvation Army Angel Tree program has provided Christmas gifts to young children, seniors on modest fixed incomes, and adults with special needs. North Texas hosts one of the largest Angel Tree programs, and APA once again participated with an Angel Tree of its own at union headquarters, sponsoring more than 100 Angels. Domicile Coordinator Toni Kennard and Senior Building Facilities Controller Robby Emmons delivered the gifts to the Salvation Army in Fort Worth on Wednesday. Thanks to everyone who contributed for your generosity.

Sharing the Holiday Spirit with Christmas Epaulets

This popular, long-running program benefits the families of our nation’s fallen heroes and young people seeking ways to further their education, as detailed in a December 2023 Aero Crew News article by CA Tim Knutson and Episode 32 of our Positive Rate podcast.

CA John Knutson – U.S. Army veteran and a pilot for North Central, Republic, and Northwest Airlines – lost his battle with cancer in 1997 at age 56. To honor his memory, John’s widow, Mary, decided to start making Christmas epaulets. Mary originally directed all proceeds to the Chetek-Weyerhaeuser Scholarship Foundation, because John was a 1959 graduate of Chetek High School. In an acknowledgement of John’s love of country, the proceeds have been shared between the Gary Sinise Foundation/Snowball Express and the Chetek-Weyerhaeuser Scholarship Foundation in recent years.

You may buy your epaulets here for $20 plus $5.50 for shipping and handling. They’re also available at Crew Outfitters stores at DFW and IAH. If you have any questions, please contact CA Tim Knutson via info@christmasepaulets.com.

Thank you for supporting this worthy cause.

If You’re 50, Join The Grey Eagles

Are you a pilot for American Airlines, at least age 50, active or retired? Please join The Grey Eagles for food, fun, and fellowship. We offer cruises, conventions, monthly luncheons, retirement dinners, professional mentoring, and assistance to surviving spouses – all for a one-time lifetime fee.

Pilot Job Fairs and Future Pilot Seminars

The Future & Active Pilot Alliance’s next Pilot Job Fair and Future Pilot Seminar are scheduled for Dec. 13 at FLL. Click here for more information.

Industry News

For more about what’s happening in the industry, be sure to visit the Industry News page on AlliedPilots.org.

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