American Airlines $400 Million Bet On Cuts—But Slashing Costs Won’t Fix Their Revenue Problem

a321 aisle
Oct 30 2024

Delta’s vision is that they’re a premium, mostly non-union airline that pays employees well and negotiates hard with partners, suppliers and even customers. United’s vision is as the nation’s most global air carrier, an increasingly upgauged route network, and more premium seats than before.

On the other hand, American’s vision is cost cuts?

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What We Know About American Airlines Upgrade Changes For 2025

Oct 29 2024

The day after the American Airlines earnings call, executives held a question and answer session for employees. One question came up about mileage upgrades and how elite members were getting passed over – because waitlisting for an upgrade takes away the option to pay a discounted cash upsell amount – and so non-status members buying cheap upsells are trumping elite customers.

The company’s Vice President of Revenue Engineering took that question, and shared more than he was supposed to because they’re planning an announcement for a couple of months from now. I now have the full detail of his answer.

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