Tag Archives for american airlines.
On Thursday American Airlines spoke to investors and journalists on their earnings call about the financial results during the first quarter and the challenges that lie ahead.
After the earnings call, as they always do, senior leadership at the airline hold a forum where they speak to employees and take questions. Here are 7 of the things they shared during that session, having reviewed a recording of that session.
Like Delta, American Airlines is capping ticket sales to make sure there’s enough room on their flights for social distancing. This will run through the end of May. And they’ve done an about face on prior policy and will even compensate volunteers to travel later in order to avoid filling up planes.
When American Airlines announced the suspension of most meal service in late March, it made sense. This substantially reduced interactions between customers and flight attendants.
At the time the airline said this suspension would last through April 30. I assumed it would be suspended indefinitely. However it turns out that American is bringing back some catering on flights less than 2200 miles effective May 1. This is available to all passengers in all cabins.
To show how quickly things are changing – the modern day equivalent of one being as a thousand years and a thousand years one day – it was only Monday that American announced flight attendants would be required to wear masks and that starting May 1 they’d begin to roll out complimentary masks for customers as an option, subject to supply chain and operational constraints.
Indeed it was just six weeks ago that American still disciplined flight attendants who wore masks.
American Airlines lost over $2.2 billion in the first quarter, even though things didn’t begin to go south until March. They’re pulling in new cash everywhere they can, cutting costs, and expect not to have any difficulty securing not just payroll protection grants from the U.S. treasury but also subsidized loans.
Those financial metrics aren’t what I’m most interested in at this point, nor the $40 billion in debt they could soon be carrying. Those issues are well covered elsewhere. I wanted to highlight 6 other things last may get less play in broader coverage.
American is rolling out deeper cleaning of aircraft between all flights, eventually extending to all of their domestic operation, and – supplies permitting – will begin offering masks and hand sanitizer to passengers. Starting May 1 flight attendants will be required to wear masks as well.
American Airlines has updated its rules have been tightened to require customers to be at the gate earlier, and to board flights earlier.
Requiring passengers to spend more time congregating in cramped gate areas is the opposite direction from where the airline should be moving in the current era which calls for greater social distancing. And closing the doors earlier means more passengers missing more flights.
Airlines are blocking middle seats. Delta has stopped processing upgrades in advance, handling all upgrades at the gate, to manage seat assignments in domestic first class so that passengers aren’t seated beside each other. They’re also blocking seats near flight attendant jump seats, to keep passengers away from flight attendants.
These are all social distancing steps to limit contact between people during travel, both to help stop the spread of the coronavirus and also to give customers confidence to fly. But they won’t do this if it means losing even a single ticket sale.
I’ve been saying we’ll start to see travel incentive programs investing in generous promotions, though frankly didn’t expect to see any this soon. American Airlines Business ExtrAA will give you points for a free roundtrip if you sign up for the program and take a single flight by June 30.
American Airlines today has increased first check bag fees on flights between North American (or Central or South America) and Europe on basic economy fares from $60 to $75.
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 »
