{"id":26735,"date":"2017-11-15T22:58:13","date_gmt":"2017-11-16T03:58:13","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/american-airlines-grounded-by-extreme-heat\/"},"modified":"2017-11-15T23:52:46","modified_gmt":"2017-11-16T04:52:46","slug":"american-airlines-grounded-by-extreme-heat","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/american-airlines-grounded-by-extreme-heat\/","title":{"rendered":"American Airlines: Grounded by extreme heat"},"content":{"rendered":"

During June 2017, a heatwave swept the state of Arizona. Temperatures soared and the mercury hovered around 120 F in the central hours of the day1<\/sup>. \u00a0Passengers flying out of Phoenix Sky Harbor airport (PHX) quickly found out that extreme heat is not an ally of airplanes. American Airlines was forced to cancel more than 40 regional flights out of PHX between the hours of 3:00 to 6:00 pm, since the Bombardier airplanes flying these routes are not licensed to operate above 118 F2<\/sup>.<\/p>\n

Impact of higher temperatures<\/strong><\/p>\n

When temperature increases, air density decreases, which reduces lift and makes it harder for airplanes to take off3<\/sup>. Longer takeoff runs mean that airlines burn more fuel, which is negative for both the environment and for the profitability of a carrier, given that fuel is one of the main cost drivers of airline operations4<\/sup>.<\/p>\n

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Additionally, if an airport has short runways, high temperatures might restrict the maximum weight that an aircraft can lift. This means that the plane can carry less passengers or less cargo onboard, negatively impacting revenue generated. According to a study released by Columbia University5<\/sup>, 30% of the flights departing during the most blistering parts of the day will not be able to take off at their maximum weight by 2050. New York La Guardia airport (LGA), where American Airlines also operates a hub, is an example of where this scenario could become a reality.<\/p>\n

It is clear, then, that American Airlines\u2019 profitability could be negatively impacted by climate change in the medium term, and that management should pay attention to reducing greenhouse gas (GHG) emissions and to combating associated risks. \u00a0The airline industry is responsible for 2-4% of the global emissions6<\/sup>, with American being the largest player\u00a0globally \u2013 measured by fleet size, revenue and number of daily flights7<\/sup> \u2013 and the largest user of jet fuel8<\/sup>.<\/p>\n

American Airlines and its focus on reducing fuel consumption<\/strong><\/p>\n

American Airlines has, in fact, a long track record of coming up with innovative ways to reduce fuel consumption, even if the ultimate objective for these initiatives has usually been to achieve cost savings. The company is famous for saving $40,000 by removing one olive from salads9<\/sup>\u00a0served in the 80s or for having a \u201cpolished metal\u201d livery in the 90s, which reduced the weight of an aircraft compared to painting it10<\/sup>. \u00a0More recently, American Airlines claimed that, by switching from paper to iPads, they saved 1.2 million dollars in fuel over the course of a year11<\/sup>.<\/p>\n

At a larger scale, American Airlines efforts to reduce emissions in the short to medium term can be summarized as follows12<\/sup>:<\/p>\n