Three Points From This Morning’s American Airlines Earnings Call

Jan 28 2021

American Airlines seems to be gearing up for another run at is single most profitable investment: lobbying in Washington DC. They haven’t been formally engaged by the government over domestic Covid testing requirements, suggesting such a plan may be farther off or less real than some have speculated. And they continue to bring on a lot of new aircraft, seeing that as effectively costless because of cheap financing.

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Travel Agent Accused Of Improperly Earning 42 Million SkyBonus Points Resolves Case

Jan 28 2021

I’ve served as an expert witness in a federal trial about SkyBonus points in the past (and in other sorts of cases as well). I don’t like to see airlines turning commercial disputes over to the government to handle through criminal law.

In this case it seemed clients benefited from the agent’s knowledge, and Delta earned business they wouldn’t otherwise have received. It’s up to Delta whether they want that business of course, but in my view the criminal justice system shouldn’t have become involved. Ultimately prosecutors, looking closely at the facts, agreed that jail time wasn’t an appropriate outcome here either. I was sorry to see Mr. Podolsky go through what he did.

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Alaska Airlines Offers 5000 Bonus Miles To New Members

alaska airlines plane
Jan 28 2021

Airlines are looking for new frequent flyer members and are willing to front bonus miles to get them. Traditional frequent flyers aren’t traveling so much now, and flights have a lower proportion of members than airlines are used to. They need a marketing relationship with the people who are flying, in order to encourage them to fly more and take their credit cards.

With Alaska’s renewed partnership with American Airlines, oneworld membership starting March 31, distance-based earning (not revenue-based!) and pledge not to devalue their award chart without notice they’re likely a strong option for many.

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Is American Airlines The Next GameStop?

depressed businessman leaning his head below a bad stock market chart
Jan 28 2021

On this morning’s American Airlines earnings call, still ongoing, Chairman and CEO Doug Parker opened saying he wasn’t going to comment on recent moves in their stock.

Their stock has been rising with 29% of its float currently shorted and worldwide attention being paid to GameStop.

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American Expands Lounge Access To Elites And Business Class On Short International Flights

world map in lounge
Jan 27 2021

There are fewer of these passengers today, with borders closed and testing requirements in place. Furthermore there’s very little international business travel. And frequent flyers with club memberships have been flying less as well.

So the real fight is for leisure passengers, many of whom haven’t been frequent flyers, and they’re mostly traveling to close-in destinations like the Caribbean and Mexico. And American is expanding airport club lounge access as a result.

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