American Airlines has had a rough couple of years, but after a decent performance in the third quarter and some management “changes” has the carrier finally turned the corner?
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American Is Making Money Again
For the second straight quarter, American Airlines is profitable from flying passengers. Despite cargo revenue dipping 20%, the airline was able to grow and it’s not solely based on banking relationships to carry their inefficiency. Profitability would have to be considered a positive trend line that even hapless American Airlines can no longer avoid in the current excellent economy.
Shuffled The Deck, Let Another Go
A couple of months ago, management shuffled the deck and let the person that was in charge of alliances go. That felt pretty closely tied to Delta’s investment in LATAM and departure from oneworld for SkyTeam and I speculated that such was a major misstep among other misgivings about the shuffle.
However, management seems happy to let Vasu Raja, now SVP of network strategy (former SVP Network Planning aka routes aka the same role), to roam a little freer than before. Some new routes were already in the mix (Casablanca to connect with new oneworld member Morrocan for example) but has also opened the door to more ambitious destinations and added/extended more flights directly to European cities.
These changes seem to be headed in the right direction though replacing LATAM and their Miami/DFW flights to many points in South America were hardly replaced by adequate volume or frequencies. For a while, American was happy to cede nearly every flight to Europe to British Airways and simply route traffic to London, however, they appear to have focused on more American metal flying direct to desirable European destinations and that is a start.
Problems Persist but Seem Back on Track
Mechanics don’t have a contract, employees are not happy regardless of whether they are legally prohibited from worker action. That hasn’t changed.
The 737 MAX isn’t back and Parker is going to make Boeing pay for it (maybe, maybe not.) Boeing has some contractual obligations without a doubt, but it was governments of the world that determined the 737 MAX wasn’t fit for the duty, not the Boeing. I’m not saying they’re blameless – they are absolutely not blameless – but I also think it will get really sticky the larger the hole becomes for Boeing to dig out.
Delays have decreased and operations have more or less resumed to normal levels for the carrier. It’s not great, but flying American this week should be a better experience than it was in June. In fact, the carrier’s September on-time performance was the best it had been since 2013.
Conclusion
For as long as I had been a frequent flyer, I was an American Airlines loyalist. As a consumer and as a travel blogger, the US Airways merger has been disappointing despite initial glee. The last two years, American has rapidly declined and stagnated. While I am not yet ready to say for certain that American has turned the corner, it seems like they have made changes they needed to get the carrier back on track.
What do you think? Is American headed in the right direction? Is this but a brief reprieve in Parker and company’s dismal management?
I have been an Ex-Plat for over a decade and was a Chairmens Preferred on US Airways prior. AA is no longer what it used to be. It is more like US Airways prior to the merger.
Customer service has declined, menu service has declined and the upgrades are fewer and almost always last minute.
Long hauls and red eyes have declined the most. With more than 4 million miles (240,000 this year) I am not motivated to change programs.
Hopefully, with profitability, things will improve for the customers.
The employees determine the experience one has flying American Airlines. The flight attendants and mechanics are miserable and therefore the flight experience is dismal. I have been bumped off more flight due to mechanical issues this than ever before. After 3 million miles it’s time to move to another airline.
I flew American at the beginning of November from PIT to/from MCO (connecting at PHL and CLT) and had 4 very good flights. Friendly crews, on time boarding and departures. No complaints!!
I’ve just flown trans Atlantic for the first time with AA and was very underwhelmed .
Old plane ,tight seat no spirit drinks free in economy lowest , poor meal , very poor meal. Entertainment system ok .staff seem low in motivation and customer skills.
I usually fly emirates and that’s super in all classes so I guess I’m spoilt? Flew Delta fir first time Asia to USA which was pretty dreadful too . It seems you guys just don’t do customer service!
Suggestion to management , take a few trips on any emirati airlines or Virgin or Cathay or Air NZ at all classes, you could learn a lot I believe .
Commendation however to the AA staff guy at SLC who rearranged delayed flights in order for me to make a connection, top class customer service from him. Nearly missed the connection however as apparently no gate agent at Dallas meaning 30 minutes on board waiting .
Just flew American twice this week. If I could fly any other airline out of ILM this time of year I would. Delays, unfriendly staff and a lack of quality snacks is the tip of the iceberg. You fill out the obligatory ” tell us about your flight ” and no one ever follows up. I so miss US AIR. Please fire Mr. Parker and find someone qualified who can bring sanity to the airline. I’m sure someone could do it for 12 million dollars he makes.
Their Android app is far worse than Ubited.American needs to invest money in technology.
I have had some rough flights but all in all, I’m heading into my third exec plat year and hoping it’s all been worth it…the platinum desk has been great, I’ve been upgraded on almost every flight. Yes the food has been challenging but I’m always first to be rebooked when there is a problem.
I gave up on them when they destroyed the Freq flyer program. Ex plat for 14 years and one million 789 thousand miles I move to a European program based on miles for miles and freindly staff so much better.
For me AA just stands for absolutely Annoying.
I fly almost exclusively internally. The next issue they face is their Oasis interiors are so uncomfortable I for one will now fly with anyone else just to escape the backache.
Other complaints sound all too familiar. I have dreaded taking American airlines for years now. However, my last 4 flights this past week were a complete surprise. All flights left on time, Arrived on time, and all staff were pleasant. It really felt like something was different this time. I hope they keep getting better, because where I live there’s only one choice 🙁
Recently took AA from DCA – PHL – Bermuda and back. All be they short flights I was very pleasantly surprised: ground staff at each station was professional and cordial; aircraft clean and appealing; flight attendants spot-on for professionalism and courtesy; flights timely and captains were informative and friendly. Perhaps I was lucky but four flights in five days might show a beginning of a trend!
American may be great again, but today is not that day, and none of the changes you mentioned will have any measurable influence on their customer service or their customer base as a whole. In fact it seems they are more domestically oriented than ever, and for domestic travel Delta and JetBlue and even United are going to eat American’s lunch every day of the week. AA has way farther to go than you think.
Employees hate it there, and it translates to the worst customer experience I have ever had. Flying on Spirt or Frontier is a better experience., Parker should be replaced.
Fred
As a 23 year Legacy AA employee, we dont hate our jobs…Most of us love our jobs but hate what the US AIRways merger,its mgmt team PARKER ,ISOM ,and his team done to our AA product, image and overall morale.
They are in way over their heads and lack accountability for their short and long term mistakes. there is no mission statement or vision
Our technology is 2nd rate and we basically have a lame marketing dept.
Mixing the US mentality with AA is like mixing oil and water.
Most everyone at AA didnt want a merger with US , being a major downgrade from the other mergers earlier ie UA/CO and DL/NW.
Even DL kicked Parker to the curb when he tried to get a deal with them.
But now it is what it is…The key to a successful AA is for AAs BOARD OF DIRECTORS to boot Parker, Isom and whoever else is connected to him , out, let him go find another airline to mess up. AA is now his third to screw up.
Thank you for the blog and all of your comments
Disgusted with US AA Mgmt
Yesterday my parents flew on AA908 EZE-MIA with the crappiest crew (FA not pilots).
Ignoring passengers, not helping elderly or ( the person seated next to my parents) a woman carrying a stroller and a baby. Not even a single “ do you need help?”
Also, they didn’t care to serve coffe during breakfast. Just like that. A small ham and cheese croissant, a semi ripe banana and no coffee.
Great service.