Local 512

April 26, 2025

My 512 family,

American Airlines reported its first-quarter earnings this week, with a net loss of $473 million. Due to economic uncertainty, they withdrew their full-year 2025 guidance but will provide an update as conditions stabilize. The quarter’s revenue was $12.6 billion, and free cash flow was $1.7 billion, with $10.8 billion in total available liquidity. As they try to reengineer their business, they expect more than $750 million of cumulative cost savings as they exit 2025.

Their first-quarter revenue was up 0.7% over the year. Still, the estimated impact of American Eagle flight 5342 reduced first-quarter revenue by $200 million, along with the effects of California wildfires and increased winter weather in their sunbelt hubs, reduced first-quarter revenue by $200 million.

They continue to see productivity improvements and expect mainline full-time employment accounts to stay flat this year. Based on their expectations for new deliveries, they expect delivery 40 to 50 new aircraft this year. For the second quarter of 2025, they expect capacity to be up 2% to 4% yearly as they continue to build back their northern hubs. 

Question: What does this all mean for us in Chicago, O’Hare? The company is focused on rebuilding Chicago because it is an integral part of the network. We understand that they took down our operation in Chicago during the pandemic. This summer, we will be back to pre-pandemic levels. We believe Chicago will continue growing as other hubs reach capacity. We have also welcomed about 100 new full-time members to the operation in the past few weeks. The company will start another hiring process in June for the winter operations.

Question? What does economic instability mean for the Union? While the TWU/IAM association has secured a two-year contract extension with American Airlines, including significant pay increases, the broader labor landscape remains uncertain. Potential regulatory changes and economic pressures could affect future negotiations, and the Union must stay on guard to protect the gains achieved and advocate for improvements in working conditions in future talks.  

Here's an update on our arbitration case on the Hangar Three grievance. Our V.P., Mike Szwed, will present the case in August, and he is now gathering witnesses and documentation. He expects to be fully ready to present this case. 

The company will expand the Tow Crew operations effective with the summer bid. The new A.M. shift will initially be scheduled from 02:30 to 11:00. If you are interested, please check your AA email for a QR code to access the form. 

We had no weekly meetings with management this week due to attending the National Safety Conference in Charlotte. Next week, we will discuss the continued bus schedule, capacity, and operational issues with gate/abr vehicles.

This past week, our safety team and I attended the National Safety Conference in Charlotte, NC, to explore the latest in occupational safety and health. The conference offered attendees a comprehensive experience focused on both traditional safety practices and innovative approaches to human performance in the workplace. 

If you have any concerns about safety or workplace issues, don't hesitate to contact our safety coordinators or the field office. 

Sincerely and fraternally,

Juan Elvira

President – TWU Local 512

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