Originally Posted by ProverseYaw

No, 2015 AAL Q1-Q4 Reported Net Profit was a record $7.6 Billion.

Even so, the stock price dropped throughout the year as investors showed a lack of confidence in the reported financials.

Doug chose to take his compensation entirely in AAL stock, a move which was meant to show investors his confidence in the airline as they lag behind the rest of the industry. His compensation of 207,000 AAL shares lost $2M in value during a record profit year. In 2015 AAG increased capacity, yet saw a decrease in revenue. Many anaylsts are calling for a reduction in capacity to improve RASM.

Is it a surprise that a man compensated entirely in stock value would be listening to shareholders? Not necessarily a bad thing overall, but when you understand his desire to please shareholders is greater than his desire to please his employees you will understand the reasoning behind making the decisions he does and how it will effect your career.

He is following the desire of analysts to reduce capacity and PSA will not become a 150 plane airline. No official announcement has yet been made because they prefer a slow transition to the reduced staffing model through modest attrition rather than a detremental effect on performance caused by a mass exodus of pilots who suddenly realize the career projections they had been sold to come to PSA have changed and they now have a better opportunity elsewhere.

TL/DR: AAL record $7.6B profit but stock price fell, Doug paid only in stock, investors want AAG to shrink, PSA fleet plan will shrink, pilots should consider other options