American CFO Sees Modest Flight Shifts From Newark

American Airlines’ chief financial officer Devon May acknowledged on Thursday that a handful of travelers are opting to book at neighboring airports such as LaGuardia, JFK and, to a lesser degree, Philadelphia instead of Newark Liberty International Airport in New Jersey, but he emphasized that the overall impact on American’s network remains limited. Speaking at the Wolfe Research conference, May noted that recent operational challenges at Newark—driven by a shortage of air traffic controllers, ongoing runway construction, equipment outages and bouts of bad weather—have prompted the Federal Aviation Administration to instruct carriers to temporarily reduce flight schedules in order to ease congestion and improve on-time performance. While American controls roughly four percent of Newark’s market share, according to the Port Authority of New York and New Jersey, United holds nearly seventy percent, and in early May proactively trimmed 35 daily departures to introduce slack into the system and mitigate knock-on delays.

Despite the disruptions, May described any shift in passenger bookings as “relatively modest” when viewed across American’s broader route network. He suggested that while some customers may have “booked away” to alternate New York–area airports in response to recent weather-related cancellations and terminal backups, most continue to rely on Newark’s efficient connections and competitive fares. American’s cautious stance contrasts with United’s more aggressive capacity management, but both carriers are navigating the same FAA-mandated flight caps, which are designed to prevent excessive airborne delays and reduce strain on ground operations until staffing levels and infrastructure upgrades can keep pace with passenger demand.

The directive from the FAA underscores longstanding challenges in the U.S. air traffic control system, where workforce shortages and aging equipment often collide with peak travel periods to create bottlenecks. Transportation Secretary Pete Buttigieg has pledged to address these limitations by leveraging funds earmarked for modernization, and earlier this week Secretary of Transportation Sean Duffy reiterated the federal commitment to investing billions in an overhaul of air traffic management. The recently approved tax legislation includes $12.5 billion specifically allocated for controller staffing enhancements and technology upgrades, a vital infusion aimed at bolstering capacity at high-volume hubs like Newark.

Passenger advocates and airline executives alike have welcomed the funding announcement, viewing it as a critical step toward reducing delays and cancellations that erode traveler confidence. At Newark, which handled more than 46 million passengers in 2023, even modest disruptions can ripple through connecting itineraries, leading to missed connections, crew shortages and cascading operational headaches. The FAA’s temporary flight reductions are intended to provide immediate relief, but airlines also recognize the need for sustainable solutions—hence their support for long-term infrastructure investment and workforce development initiatives.

For now, American Airlines remains focused on balancing service reliability with customer choice, ensuring that travelers seeking alternatives have access to comprehensive schedules at New York’s airports. While a small migration of bookings away from Newark may persist in the short term, May’s assessment suggests that most passengers continue to value the airport’s proximity to Manhattan, extensive domestic and international routes, and streamlined customs facilities. As modernization funds begin to flow and staffing gaps narrow, the FAA and carriers anticipate a gradual restoration of full schedules, enabling Newark to reclaim its role as a primary gateway for the region. In the meantime, the modest shift in booking patterns serves as a reminder of the intricate interplay between operational capacity, traveler behavior and the infrastructure investments needed to keep America’s skies running smoothly.

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