“They Cash In While Service Sinks”: American Airlines Flight Attendants Union Blasts Execs For Money-Losing Quarter

The American Airlines flight attendants union sent out a ‘hotline‘ message to cabin crew calling out management after a loss-making quarter. There’s a lot to criticize in how the airline has been run. None of those things are what the union chooses to highlight in their message which was flagged by aviation watchdog JonNYC.

First, the flight attendants union does have a real interest in American Airlines as a well-run, profitable company.

  • They want a growing airline, hiring more flight attendants and growing their dues-paying membership.
  • And more hires means greater relative seniority for current members.
  • Plus, their new contract includes significant a real profit-sharing program – non-union Delta’s formula! – so they want the airline to be profitable.

Former CEO Doug Parker said that flight attendants shouldn’t receive profit-sharing because they don’t influence profit. He was totally wrong about that. But he was right that American’s flight attendants were better off with guaranteed fixed pay rather than at-risk pay, tied to his company’s performance.

The union begins by blaming Vasu Raja’s sales and distribution strategy for the airline’s poor financial performance. Vasu was fired! This continues the union’s streak of never calling out current management directly. This union president never even criticized the C-suite when it carried out the biggest-ever flight attendant furlough of any airline in the history of the world.

Management’s narrative is that their underperformance is attributable to that past strategy, that they’ve pivoted from. They were even called out for it during their earnings call, since current numbers aren’t showing the expected improvements from the pivot.

The major criticism here, though, is that when Raja was made the fall guy for a strategy signed off on by the CEO that he received severance which bought a period of non-compete and non-disparagement. Arguably the severance was too low and therefore American didn’t get enough. But they needed to keep Raja quiet to push their narrative to markets and to implement their pivot.

However, the union sees it as ‘management walks away with generous compensation’ while “the rest of us are asked to make up for management’s costly errors with less onboard staffing and an outdated product.”

Service reductions are part of the reason for the airline’s underperformance, not a result of it. American has high costs, and therefore needs high revenue. They need customers to pay them a premium for the product, not just choose them when they’re cheapest. American Airlines has a revenue problem and needs to invest in the experience that customers will go out of their way for. That’s doubly true as labor costs (!) are rising at the airline.

It’s really striking that the union ends with “it is time that American Airlines executives are held to the same performance standards as the Flight Attendants.” If anything, the problem here is that this is all they’re held to!

There some absolutely fantastic American Airlines crew. Some of the best service I’ve ever had was on American Airlines last year and on American Eagle the year before. But they’re just as likely to create a makeshift barrier out of seatbelts to keep passengers away.

Whether great service or terrible service, it’s largely up to the individual. There is little incentive or penalty either way. That’s fixable, but fixing it really isn’t something management has pursued.

And this is exactly the same problem with management. The Board applies just as little accountability to management as management (under the APFA contract) has applied to flight attendants.

Ultimately fixes need to come from the top. The American Airlines board is most to blame, followed by management. But while flight attendants have a vested and growing interest in the success of the airline, the analysis by their union about what that takes, and what’s wrong, does a real disservice to their members (and their member paychecks).

About Gary Leff

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 »

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Comments

  1. There’s no shortage of flight attendants to blame. The ones that take the number one position (might pay a bit more) than stare off into space during boarding. Slow on the beverage service so there’s only one round or the meal service is so slow you’re getting your meal with an hour or less in flight. And no second service now in coach on longer flights.

    I remember a time when LGA/MIA got two beverage services.

  2. very well said, Gary.

    AA’s financial performance has been barely above flat line for a decade. No management team yet has been able to fix it.

    AA’s labor relations and esp. w/ its FAs is toxic. These were the same people that were taking it out on AA customers – and then act surprised when those high value customers leave.

    The only real question is what the end point is for AA. Another chapter 11, or is chapter 44?
    is there someone that can come out of the wood work and save the company?
    will DL and UA continue to siphon off any valuable revenue that might be left?

    It is more telling that Elliott picked WN to invest in and turn around even though the international and premium travel boom has been known to be what is driving DL and UA’s performance – and what AA says kept itself above the water.

  3. So long as the awards program can bail out poor operations, there is little incentive to improve operations.

  4. This is rich coming from the most hateful flight attendants in the US. My and the issue many have with AA is their employees: gate agents and flight attendants.

    While they may feel they have it bad, that does not give them carte blance to take it out on the passengers. Yes, the in-flight product is lousy, but so is Southwest’s and their flight attendants seem to like their jobs and treat their passengers well.

    While some may argue that poor management yields disgruntled employees, these employees have free will. If they have lost trust in management they have two options: leave or work to make things better. Option three of taking it out on passengers is not acceptable and why many of us high-value passengers avoid AA.

    There are plenty of jobs available, particularly for semi-skilled labor. If you don’t like your job, find a new one but don’t abuse the customer.

  5. I’m always curious about the staffing levels for Delta, because they are allegedly known for the “Delta difference” but do they have more extra staffing overall on widebodies and premium markets?

    I haven’t actually heard that, but I’m curious to actually know. What I have been reading is Delta flight attendants have begun to get upset about no raise announcement yet from ED. Rumors are circulating that they are delaying it? It does seem more and more are asking what are the pros of them not having a union if they are no longer the highest paid?

    American, Southwest, and Alaska pay higher now and it seems Delta doesn’t seem all too eager to give them timely raises anymore even though Delta brings in the most revenue. It’s very interesting

  6. Ryan
    DL raises FA and most non-contract employees at the same time and by the same amount.

    DL’s non-contract employees have received multiple pay raises.

    DL employees split on a pro rata basis of their salary to total salary $1.4 billion in profit sharing on Valentines Day just 2 months ago.

    UA was the 2nd highest US airline in profit sharing and theirs was half of DL’s.
    And UA FAs still do not have a new contract.

    and DL FAs pay no union dues.

  7. So it’s the C-suites fault that they’re lazy and CHOOSE to not to shit onboard. Got it.

  8. “The American Airlines board is most to blame, followed by management.” ’nuff said, Gary!

    @CHRIS — Nah, pay the flight attendants (and pilots, gate gates, ground crew, maintenance, support staff, all of ’em) more, and let’s see management take a pay cut, for once.

    @George N Romey — They still do (2-3x or more, if you’re up front). I prefer JFK-MIA when they operate the 772 or 773 though. That’s a fun ride, if in Business or Flagship First (while the old configuration lasts). Seasonal, no doubt. Otherwise, lame 737.

    @Parker — No need to vilify here. Nearly all the folks I’ve interacted with at AA have been nice.

    @ML — Bah! Where’s @Matt for his ‘please consider Delta’ meme?

    @Tim Dunn — No worries, I still prefer Delta, but I’m nearly always in favor of workers getting paid more. I still think DL’s FAs, baggage handlers, etc. should unionize. *wink*

  9. I guess 1990 would happily pay twice for his coach class tickets to afford all he espouses. Not.

    If they don’t like the pay or the jobs they are more than free to search for other employment. Yet they don’t. Wonder why that is.

  10. 1990, cairns
    it is pretty easy to calculate average salary from public financial statements.

    DL employees make more than AA and UA employees.

    that is average and lumps in all employees; DL pilots set the contract which is basically matched in salary and benefits by AA and UA pilots.

    there is detailed financial data if you want to dig through DOT data but the notion that DL unionized or non-unionized employees would make more if they were unionized is counter to public data.

  11. After the American Airlines flight attendants Union went to bed with Doug Parker and then got screwed, did they have a cigarette?

  12. @1990 Your experience on AA and mine could not be more different. I have actually flown Spirit to avoid AA. A seasoned business traveler with over 4 million miles under my belt (1.5 million of which are on AA) would not do something like that willy nilly

    I’m not sure there is anything about my statement that qualifies as “vilification,” understanding that words like that are subjective at best. I am simply pointing out that other airlines have the same “challenges” as AA and their employees seem to handle them better. I’m also suggesting that if the flight attendants don’t like it, they have options other than gaslighting and blaming leadership for everything. Yes, leadership carries a fair amount of the responsibility for AA being where it is, but enough of AA’s employees have done nothing but make a bad situation worse. Many passengers do not like AA’s employees not because of what management has done, but because of what AA employees have done to them or to other passengers.

  13. “It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat.” —Theodore Roosevelt

  14. @cairns — You get what you pay for. Folks such as yourself complain nonstop about lackluster service, yet you aren’t willing to pay more than the bare minimum. Treat people like human beings, pay a living wage with benefits, too. Otherwise, they’ll act their wage. $50K/year may be more than many teachers, which is sad in and of itself. The safety and comforter the crews provide is indeed skilled labor; nearly all labor is, so if y’all could stop diminishing others, that’d be swell.

  15. @DesertGhost — Teddy is the G.O.A.T. Great quote, except we’re all basically critics on here. Bah! Self-own!

    @Parker — What is this, a phallus-measuring contest? I’m not pretending to have flown every route with the airline, but I was an EP for several years, now a PP, mostly from MIA, JFK, to the Caribbean, transcon, and overseas routes, and with OW partners, like QR. American metal is not my favorite out there, but the FA’s a fine, and I wish them and their union the best on getting good terms. These companies should invest in their people; it pays dividends (figuratively and literally sometimes) when they do.

  16. 1990 please quote me for complaining about lackluster service. I may have but I strongly doubt it. I’m used to it for from the US3.

    If you can’t please STFU. For once.

  17. The level of understaffing with US airlines is dreadful and stands in the way of decent service. But the union doesn’t address this. Strange.

  18. Wanted to let you know since you write about it that just flew 1st LAX TO Sydney. All of the things complained about service wise on AA in 1st were not true on our flight. Very attentive service by two attendants for 8 of us. Dine on demand was offered when I said I preferred not to eat right away. And they were very attentive throughout.

  19. Those those complaining about no second service on transcon flights. It’s not the flight attendants fault. I would love to do a second service, and we used to do 2 full services and coffee/water. AA management barely caters our planes now for one service let alone two. We tell our management this, they don’t listen. Flight attendants cannot change this, the customers have to speak up directly to management with their words and/or their wallets.

  20. @cairns — You first. Please feel free to complain as much as you wish. I’ll defend your ability to do so. I am passionate about free speech and expression, even if I disagree with the substance personally, but for a few notable exceptions (threats of violence, hate speech, etc.) We’re still free here (and many places around the world), for now. By the way, what happened to all those quips about ‘cancel culture’ from the ‘anti-woke’ folks from around the globe, USA and AU, included. Was that just astroturfing, after all? Would be swell to finally receive an admission that it was all ‘smoke and mirrors’ because y’all will happily silence views opposed to your own. See the typical calls rushing to ‘fire’ someone, like that guy from Ford, recently, you may recall since Gary posted about it here. Just saying, I know you won’t address the hypocrisy or have shame, and prefer the equivalent of ‘alternative facts,’ but yeah, no, yeah, I’mma say what I wanna say, respectfully. You do you. Feed me.

  21. Just got back from Cartagena. Laziest flight attendant ever. Seemed like ex female prison guards

  22. @1990 – again, your experience has not been mine. You think they’re fine, I think they’re a hot mess. You are entitled to your opinion. I am entitled to mine. I am not going to change my opinion because you think it too harsh. I’ll change my opinion when I see substantive improvement in the behavior and professionalism of AA’s employees.

    And, FWIW, lowering the conversation to discussion about the size of one’s manhood just to inflame the conversation is not how I intend to conduct myself here. My discussion will remain direct, but as respectful as possible. I’m here for productive conversations and to learn, not to take my personal frustrations out on people I have never met and don’t have the ability to look in the face.

  23. Mary,
    staffing levels are not the problem. The problem is not using the time efficiently and that is sometimes the FAs themselves and sometimes company procedures.

    I remember flying an AA DC10 from SAT to DFW and they did a full cart beverage service with 6 FAs.

    Granted, they were up in the aisles just about as soon as the wheels were off the runway and didn’t store the carts until moments before touchdown but that was an impressive level of service.

    Airlines and their labor groups have allowed mediocrity to slip into service. AA has been the worst in allowing its most direct customer service groups – airport passenger service employees and FAs – to deliver some of the worst service. Not every one of them is bad but there are way too many bad apples.

    andy,
    and that is precisely the mediocrity.
    I was also on an AA flight from DFW to TPA, also years ago, and they didn’t have enough supplies to even do a beverage service on the ground while sitting for over 3 hours during a thunderstorm, let alone offer anything once we got in the air.
    It does degrade employees’ desire to do their job right when they consistently don’t have the right tools. and this isn’t about technology or space in the galleys. It is simply stocking them adequately to deliver a basic level of service.

    In contrast, UA FAs regularly give a can of soda – which is faster – while DL and WN FAs have always been willing to give a can and multiple snacks if you ask

  24. To Gary Leff and Tim Dunn, I totally agree with both of you: American’s financial performance is simply awful. And headed in the wrong direction. Let me illustrate with a simple, recent (ongoing) example. In late May, I need to fly one way (because for the return I am using a Cathay Pacific credit from an earlier flight that I had to cancel) from Tampa to Manila (Philippines) business class. There were many, many, many flight options on Expedia, Agoda, etc. But I looked up rates on both American and United websites, too. Poor American, they just cannot figure out how to compete !!

    Here is an example of what I found: American was all pretty much through DFW. Well, OK. But I could fly Tampa to DFW, then either DFW to Narita (the “least expensive option”) or DFW to Incheon. BOTH FLIGHTS WERE ON THEIR SAD, OLD 777-200LR (with its not so good business class seats). Hmmm, they are already behind in this race. But the real killer: The connecting flights on either NRT to MNL (on JAL) or ICN to MNL (on Asiana) WERE ECONOMY CLASS !! Not even possible to book Business Class. I called AA’s ExecPlat line, but they said “no seats in business class were available with either the connecting JAL or Asiana flights. Horse Hockey !! I checked both of those airlines, and looked at their seat maps, and BOTH had about half of the business class seats open still !! And for this “prize” travel (TPA to DFW to NRT to MNL, or TPA to DFW to ICN to MNL), AA wanted about $4700 one way.

    On United, there were MULTIPLE ways of going (TPA to DEN, or TPA to EWR, or TPA to ORD, or TPA to IAH, or TPA to LAX – I chose the TPA to LAX, but all fare prices were identical). And then from LAX to NRT on a 787-9 (love that plane, so quiet and comfortable to fly on), and then from NRT to MNL on ANA Airlines (one of the top 10 in the world). AND ALL BUSINESS CLASS (or TPA to LAX was First Class). And the fare? Well, $4077. About $700 less. And no Economy Class.

    Plus, the ANA flight arrives at 9:15 pm (+1 day) versus at 10:40 pm on the JAL (still +1 day) or after midnight on the Asiana flight (+2 days). And the final kicker: On ANA I arrive into Terminal 3 (the newest and nicest terminal at Manila Ninoy Aquino International Airport) instead of Terminal 1 (the oldest terminal) on JAL or Asiana.

    Poor AA just cannot seem to figure out why about half of its seats on the DFW to NRT flight are still empty. I may be a 6 million miler, but my days of bondage to the AA frequent flyer program are forever over. Now I go for factors such as quality, and comfort, and timing, etc.

    They are destined to lose money until their management changes. That simple.

    EdSparks58

  25. Last year Robert Isom (AA CEO) made $34,000,000.00 for poor performance. It would be interesting to see his 2024 compensation for continuing poor performance.

  26. @EdSparks58, why didn’t you route through SFO instead of LAX? There is a nonstop United metal flight from SFO to MNL.

  27. So, the F/A’s are blaming management for poor service. That’s rich! We flew from Philadelphia to Heathrow on 4/15 in business. The flight attendants never brought out a beverage cart the entire trip. No wine service with dinner, nothing. Smooth flight, no weather, just lazy flight attendants. Returning tomorrow through Helsinki on Finnish Air. First time on Finnish Air so I’m interesting to see how they compare. Maybe the poor financial results are a reflection in the poor service and people ditching AA for BA or others. Certainly not all of it, AA is not the best run company by far, but they do have an impact on profits. Personally, I prefer BA over AA and fly them to Europe any chance I get to ditch AA. I’m nearly 5 million miles with American and 1 million with other airlines, so I’ve had my share of flights to compare with. Flew Qatar Air from Doha to Heathrow in 2019! Talk about service! Wow!

  28. Isom actually outperformed Kirby and Bastain in this month’s conference calls. Listen and judge for yourself. He’s a good CEO and AA is lucky to have him. AA’s biggest problem right now is they are too heavily domestic. It’s counterintuitive given what’s going on in the world, but it’s definitely true. That said, the world will change. As the ulcc’s fail — as they are likely to do — AA’s domestic network largely hubbed in the southern tier (where the American economy is growing) will outperform. Meanwhile, their plan to quickly add 50% more premium seats and add frills seems quite smart given the current market situation. This is a way better company long-term than almost anyone realizes.

  29. @John C — You are correct. Most CEOs, including the major US airlines, get paid way too much for doing practically nothing. Boards get paid too much too. Average annual salary is $80K at AA, including pilots ($114K), aircraft maintenance ($96K), flight attendants ($40K), and other service roles (just $20/hour). $30+ million for a CEO. Why does Robert, Ed, Scott, Bob, or any of the others ‘deserve’ even $10+ million? They don’t ‘earn’ that. They aren’t uniquely talented. Many others could do those jobs just fine. These inequities are absurd. Historically, it doesn’t go well when we allow this for too long, especially if they cannot even perform well or take care of their own folks. Garsh.

  30. @Tim Dunn

    Multiple raises is not the same thing as on time yearly raises.

    Since Delta is opting not to give on time raises this not only hurts Delta flight attendants it hurts their other employees as well since it’s systemwide. Delta is the highest earning airline in The United States, so there is no excuse for it.

    You love to compare DL and United but I notice you fail to compare Alaska in ever single scenario. Alaska received more profit sharing than Delta and that was off an outdated contract! Alaska was no where near the highest earning at that time. They also currently make more than Delta flight attendants. Embarrassing Timothy!!!! Alaska has what? Say it MF with me!!! A union!!!

    Ryan
    DL raises FA and most non-contract employees at the same time and by the same amount.

    DL’s non-contract employees have received multiple pay raises.

    DL employees split on a pro rata basis of their salary to total salary $1.4 billion in profit sharing on Valentines Day just 2 months ago.

    UA was the 2nd highest US airline in profit sharing and theirs was half of DL’s.
    And UA FAs still do not have a new contract.

    and DL FAs pay no union dues.

  31. Uh oh, @Tim Dunn, looks like we got another one in favor of further unionization at Delta.

    @Ryan — I’m with you, sir. Huge fan of Delta, here, as Tim knows that I am, yet I still think it would make the airline even better if the flight attendants and baggage handlers were to organize as well. The pilots have had their union, since the 1930s, and the company is doing just dandy. Why should the other workers live in fear, on their own, no meaningful support, no collective bargaining, especially with those vicious ‘at-will’ laws in states like Georgia and Florida, where anyone can practically be fired on a whim, perhaps by a middle-manager on a power-trip, so long as they don’t *explicitly* say it was because the worker was a part of a protected class. Just saying, there’s a better way, and the more the merrier. Also, isn’t it funny how high-level executives get all the protections in their contracts, then seek to deny similar protections to those deemed ‘lesser than.’ Hmm. We’re all human beings, though. So, why do folks that work in an office get to live ‘well,’ but those who care for your luggage should barely survive. Just sayin…

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