American Airlines Group reports that capacity at its subsidiaries American Airlines and US Airways grew by 3.3% during the fourth quarter.
The growth was driven by capacity increases in its mainline operations, including taking delivery of new aircraft at American and replacing older, smaller aircraft with new, larger ones at US Airways, according to its first investor update since the carriers merged in December 2013.
Capacity rose 2.1% at American and 5.7% at US Airways compared to the fourth quarter of 2012, however, the former represents about two-thirds of the combined company's available seat miles.
Cost per available seat mile (CASM) excluding fuel and special items is expected to be flat to rise 2% at mainline American and fall by 1% to 3% at mainline US Airways during the quarter.
Non-fuel and special items CASM was 8.54 cents at mainline American and 8.36 cents at mainline US Airways during the last quarter of 2012.
The average price for fuel is anticipated to be $3.06 to $3.11 per gallon at American and $3 to $3.05 per gallon at US Airways in the fourth quarter.
The group had about $9.3 billion in unrestricted cash and investments at the end of 2013, according to the update.