“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while “the rest of us are asked to make up for management’s costly errors with less onboard staffing and an outdated product.”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.

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