Tag Archives for american airlines.
Starting on Monday American is dropping buffets from its lounges. This will be replaced with “individually portioned, covered food items and will shift most self-service beverages to individual portions such as milk cartons or bartender/wait staff service.
There will also be changes to how drinks are service on board.
Four years ago American shared on an earnings call that 50% of its revenue was coming from once a year flyers who made up 87% of its customers, with more frequent customers representing just 13% of flyers and the other half of revenue.
Now once a year customers are contributing an even greater share of American’s revenue – even as people fly more often.
American Airlines will accelerate the retirement of its Boeing 757 and 767 fleets (and won’t have reason to extend service of their Embraer E-190s). They’re cutting flights, including much of Europe and even some service to London. And they’re promising that actual quarantined employees won’t be fired for taking sick time.
American is extending their AA20 program – 20% off paid travel for employees – to web special awards. If there was any doubt that these web specials were revenue-based redemption, this change should offer insight into how American thinks about them.
At an investor conference this morning, after first talking about coronavirus, American Airlines CEO Doug Parker pivoted to talk about the airline’s operational performance, and growth plans including from new gates coming online in Charlotte and upgauging regional jets next year at Washington National airport.
American just has a real difference in perspective. Parker said they are “not breaking out the distress playbook..that’s not where we are.” I hope he’s right of course. They talked about the effect of sales on bookings, their cash balance as a cushion, and the possible accelerated retirement of the Boeing 757.
United Airlines already announced a 20% cut to its international route network and 10% cut domestically. American is out with route and frequency reductions and I don’t think they are done.
International reduction for summer is 10% (55% reduction in transpacific flying). Domestic reduction in April is 7.5%.
Like Delta (Sky Bonus) and United (Perks Plus), American Airlines has a small business program. It’s designed for companies that aren’t going to have corporate-level agreements with an airline that come with discounts or rebates. Instead they offer points redeemable for travel and services from the airline.
The good news is that even some of the smallest businesses can join and can ‘double dip’. The traveler earns frequent flyer miles as usual, and the company earns points in the separate Business ExtrAA program on top.
Self-serve snacks go away, recycling is being reduced, and passengers aren’t going to be putting their virus-laden hands in the bread basket or the snack basket. The reminder here that alcohol in mini bottles is not a disinfectant apparently needed to be said? If it’s less than 60% alcohol it’s not going to help. American Airlines doesn’t serve Everclear.
American Airlines President Robert Isom first tells a group of employees in Philadelphia that they need to do it all, but when it comes down to it he says run on time.
In making the announcement of the renewed codeshare with Qatar Airways this past week American said that “the issues [of subsidies] had been addressed” between the two airlines. That’s bullocks, the U.S. airlines failed completely in their effort to get meaningful government action against their Gulf rivals.
On Wednesday American Airlines CEO Doug Parker spoke to employees at an internal town hall, a recording of which was shared with View From The Wing. There he explained the carrier’s change of heart.
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 »
