Category Archives for Airlines.
After American’s earnings call senior executives took questions from employees at their State of the Airline event.
Kurt Stache, American’s Senior Vice President Marketing, Loyalty & Sales, was asked 3 questions about American’s inflight entertainment and wifi products.
One American Airlines route stands out to be as an aberration: Meridian, Mississippi to Hattiesburg, Mississippi. That’s a flight of just 69 miles, and it’s operated once daily in both directions with a Bombardier CRJ-200 50 seat regional jet.
To get a quick understanding for why this route exists — and persists under current management — Glazer’s law helps do some of the lifting.
After American’s third quarter earnings call late in the week, executives gathered for their internal ‘State of the Airline’ comments to employees along with question and answer session. Vice President – Planning Vasu Raja answered questions about the airline’s route plans in a “network speed round.”
Here are key takeaways:
In August United Airlines President Scott Kirby explains all of their fees and charges as being what you’d expect from a concert, implying it’s not reasonable for people to be frustrated with how airlines charge for things like seats.
In March American Airlines CEO Doug Parker said his airline’s tickets are flexible compared to buying a seat at a sporting event.
American Airlines is losing money on the part of their business which involves flying people. It turns out that American’s passenger operation would look even worse if it hadn’t been for an accounting rules change (ASC 606) that the airline had to adopt effective January 1, 2018.
The accounting rules change of course may be the best possible way to reflect the costs associated with issuing miles. It also has the effect of moving a quarter billion dollars of passenger revenue out of past years and into the present, making the present look better than it otherwise would have as a result.
Doug Parker wants to outsource U.S. maintenance jobs. That probably makes sense for the airline. Their mechanics though now realize the public claim about the importance of ‘protecting American jobs’ was self-serving nonsense.
Back in June word leaked that JetBlue founder Dave Neeleman is launching a new airline in the U.S. He has an order for 60 Airbus A220s with options for 60 more.
He says there will no be option to call customer service and no way to check in with an agent at the airport. It’s app-only, but contends the name won’t matter, he “could call this airline crap and people will love it.”
American’s financials show they only make money on their frequent flyer program, and are not making money flying passengers.
American has earned pretax income of $1.5 billion year-to-date, while $1.8 billion was booked as immediate marketing revenue from sale of miles which comes at almost no cost
A United employee was fired two years ago but kept his uniform and airline ID. He spent over a year logging into United terminals inside airports around the country and printing meal vouchers. A lot of them.
He created tens of thousands of meal vouchers, intended for distressed passengers, worth $20 – $30 each.
American’s stock hit new lows yesterday in advance of today’s earnings call. That left the airline in a tough position, needing to explain how they’d cut costs which are rising at a faster rate than revenues.
I listen to the earnings call with a different perspective than most people covering them. I’m interested in news about the loyalty program, about the product, and about how changes to the business are likely to impact the way customers interact with the airline — as well as what we can expect from the overall direction in the industry.
As a result some of the six things that stuck out for me are likely to be different than key takeaways elsewhere, and are things you may otherwise miss.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
