American Airlines Halts Venezuelan Operations: Here's Why
Zacks Investment Research | Mar 17, 2019 11:37PM ET
As a result of the unrest in Venezuela, American Airlines (NASDAQ:AAL) temporarily suspended operations to the strife-torn nation. Following American Airlines’ action, all major U.S.-based carriers have pulled out of the South American country.
Notably, Delta Air Lines (NYSE:DAL) and United Airlines — the wholly-owned subsidiary of United Continental Holdings (NASDAQ:UAL) — had halted their respective Venezuelan operations in 2017. Apart from U.S. carriers, international carriers like LATAM Airlines (NYSE:LTM) too have stopped operations to Venezuela due to unfavorable conditions prevailing there.
The withdrawal of American Airlines’ operations has isolated Venezuela further. The country’s economy has already been in the doldrums for quite some time.
Markedly, American Airlines’ action was backed by advice from its pilots’ union — Allied Pilots Association (“APA”) — to suspend operations to Venezuela due to safety concerns. According to Zacks Investment Research
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