American Airlines Cancels Seoul Flights On Lower Demand

American Airlines Group Inc. (NASDAQ:AAL) has suspended service between Dallas and Seoul-Incheon through Apr 24, 2020 due to a drop in demand. With the fast-evolving coronavirus outbreak earlier in the month, the Fort Worth, TX based carrier suspended all U.S. flights to Milan.

Last month, Delta Air Lines, Inc. (NYSE:DAL) temporarily reduced the number of services to and from South Korea. The carrier has reduced flights connecting Seoul with Atlanta and that connecting Detroit with Seattle to five times weekly through Apr 30. Additionally, it suspended service between Minneapolis/St. Paul and Seoul-Incheon through Apr 30.

Amid decreasing air travel demand, American Airlines suspended change and cancellation fees to encourage customers to travel without hesitation, while simultaneously trying to get back its share of the fallen demand. The facility is available on all new ticket purchases through Mar 16. Customers can avail of this benefit up to 14 days prior to travel for scheduled journey through late January 2021.

American Airlines Group Inc. Price

American Airlines Group Inc. price | American Airlines Group Inc. Quote

The facility was first offered by JetBlue Airways last week. Later, several carriers including the likes of Alaska Airlines, the subsidiary of Alaska Air Group (NYSE:ALK) and United Airlines (NASDAQ:UAL) have joined in.

Passengers booking on JetBlue can avail of the privileges through Mar 11 for travel to be completed by Jun 1, 2020. Alaska Airlines’ passengers can get the same benefit on tickets booked through Mar 12 on travel to be completed by Jun 1. Meanwhile, United Airlines’ customers can apply for a change-fee waiver on bookings through Mar 31. Additionally, customers can cancel tickets (in exchange for another ticket for travel within 12 months of the date of issuance of the ticket) without any change fees.

Zacks Rank

American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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