Travellers from the UAE now have greater access to the American market, following regulatory approval for a new codeshare agreement between the award-winning Etihad Airways and American Airlines. The agreement, which comes into effect this week, coincides with Etihad launching flights to Chicago on 2 September 2009.

American Airlines has reported deepening quarterly losses for the second consecutive year, as weak demand and falling fares drove sales sharply lower. Net quarterly losses, excluding non-recurring charges, sunk to $319m compared to a loss of $298m a year earlier. Group revenues in the second quarter fell 21 percent to $4.89bn and in the first six months by 18 percent to $9.7bn.

Virgin Atlantic, one of the world’s leading long-haul airlines, today highlighted the contradictions and lack of consumer benefits in BA and American Airline’s proposals to effectively merge.

American Airlines will award $14 million to approximately 72,000 frontline employees - or an average of about $200 per eligible employee - for helping the company achieve certain customer satisfaction goals during the first quarter of 2009. The incentive award will appear in employees’ May 15 paychecks.

Airlines are flying some nearly empty planes from the United States to Mexico, a strong indication that swine flu concerns are keeping travelers at home. Continental Airlines, American Airlines and US Airways offer the most services to Mexico from the US and they are all seeing big falls in demand.

AMR, the parent company of American Airlines, has reported heavy net losses for the first quarter amid shrinking demand for air travel.The group said its net loss for the first quarter rose to $375m from $341m in the same period a year ago. Revenues fell 15 percent to $4.8bn due to reduced capacity, passenger and cargo figures, as well as lower fares.