American Airlines has finally awakened and realized that it will continue to fall behind Delta Air Lines and United Airlines unless it offers a more premium experience for its passengers. Here’s how it can be done.
5 Ways American Airlines Can Be Great Again
While AA was profitable in 2024, it once again lagged behind Delta and United and that appears to be a systemic problem for the Dallas-based carrier. Costs are high and yet AA is simply not able to squeeze a premium yield from passengers to pay for that high cost.
Now the carrier recognizes that something fundamental must change. Aviation insider JonNYC shared a memo from Steve Johnson, American’s Vice Chair and Chief Strategy Officer, that notes changes that are coming:
Heather Garboden will take on the new role of Chief Customer Officer leading a unified Customer Experience team. It is abundantly clear the competitive battleground in the network airline business has, like never before, shifted sharply to product and customer service. As our ability to outperform in revenue will depend increasingly on embracing that reality and delivering a different and elevated customer experience, especially for our premium and most loyal customers. Heather will help us all embrace this change, bringing a new, thoughtful and holistic approach to designing every aspect of the customer journey, and partner closely with the Operations team to consistently deliver it. Her new team will ensure we put the customer at the center of our strategic thinking and offer products our team members are proud to deliver and our customers are excited to buy.
Opinion followed by Steve Johnson memo pic.twitter.com/M4Kw3SSyRB
— JonNYC (@xJonNYC) February 14, 2025
What does this mean? For the last few months, I’ve flown AA more than any other carrier and I love playing armchair CEO, so here are my thoughts on what AA must do to try to move the needle. There’s nothing revolutionary here. It’s the little things…
1. Clean Planes That Run On Time
For years, AA has said if it can just get the operation right, people will be happy. Yes and no. A smooth operation should be a given. That doesn’t necessarily mean a 100% on-time rate, but when inevitable delays occur, AA needs to do a far better job of communicating (an area where United Airlines shines).
For example, my wife flew American Airlines yesterday. Her inbound aircraft was delayed long before AA delayed her flight; I knew she would be delayed long before any official delay. And when AA did delay her light, it was in 15-minute rolling delays (she ultimately took off 2.5 hours late). This is so common…and so unnecessary.
When a plane takes off late, who realistically thinks it can land, deplane, and be cleaned in 15-20 minutes? Post the delay immediately, communicate why, let passengers track the inbound aircraft, and watch how much happier they are even when there is a delay.
And then there’s the matter of onboard product. AA must maintain what it has. As I recently lamented, it has essentially given up on its Airbus A321T aircraft…the planes are just falling apart. Who would possibly pay a premium for that? Who would go out of their way to fly American Airlines on a plane that is falling apart on a flight that is delayed without adequate communication?
This is such a low-hanging fruit.
2. More Food On More Flights
Being a premium carrier is not limited to premium cabins. AA misses out greatly by not selling “real” food in economy class and offering meal service windows in premium cabins that are narrower than before the pandemic.
Imagine if AA served something, even if just a hot scone or ramekin of warmed mixed nuts, on every single flight in the front cabin? Imagine if AA offered salads and sandwiches for purchase onboard shorter flights to those in economy class, many of whom may not have had a chance to eat before the flight?
What if AA ditched its disgusting Fresh Brew Coffee for a better brand and actually offered espresso in first class on all flights?
I don’t buy that people do not care about stuff like this. I do. My friends do. My colleagues do. People notice and people are willing to pay a premium for a premium product.
Introducing small elements like single-origin coffee or fresh-squeezed orange juice would lead to far higher customer satisfaction scores…try it.
3. Free Wi-Fi
The Wi-Fi internet situation on AA is incredibly uncompetitive right now, with high prices and speeds that no longer beat Delta or United. Wi-Fi is free on Delta and soon-to-be free (currently $8) on United. But a domestic flight pass on AA can run over $35. It’s ridiculous…this is 2025 and AA needs to offer fast, free gate-to-gate wi-fi onboard to all passengers.
4. Flight Attendants Who Actually Care
I haven’t shared about my latest AA flight yet, but the service was so comically bad, not in a hostile way, but just in the laidback and unprofessional attitude of the flight attendants.
While AA has some amazing, wonderful flight attendants, it also has many who are just going through the motions. It shows! People notice.
Why are we so willing to accept that service on East Asian carriers will always be better? Certainly you’ve had a flight on US carrier where the service was outstanding…that must be replicated and I refuse to accept that there is no room for improvement or that the service culture is too ingrained.
5. A Differentiated Loyalty Program
Of the big three legacy carriers, American Airlines has the best loyalty program right now. It must build up on that and resist the urge to devalue like Delta and United have done.
I think the days of complimentary elite upgrades are over in any practical sense, but offering an award chart with meaningful redemptions for those who are loyal (as AA does now), will bring business and will build loyalty.
It’s often said that AA makes money with AAdvantage and loses money flying. It’s true…and all the more reason not to kill the goose that lays the golden eggs.
CONCLUSION
You have to spend money to make money…and AA will need to spend for a premium product before it earns premium revenue. Ironically, the good news is that AA currently doesn’t do the little things right, so it can adjust aircraft maintenance and communication in fairly short order. But I don’t think AA has to start from scratch to start competing with Delta and United. Instead, it must demonstrate incremental progress while continuing to build its route map and keep its loyalty program strong.
“4. Flight Attendants Who Actually Care”
That’s an easy thing to say they need to fix, but you offer zero substance on how to do it, which underlies the problem – AA can’t just fire those who are going through the motions. Doug kowtowed to the employees, almost to a fault (I say that as a big union fan), and there is still poor morale among many of them.
That’s fair. I get all the UA memos to FAs…I know so many FAs who forward them to me. You know what has changed since the Munoz era? Consistent communication on how to treat customers. How to welcome them. How to make them feel valuable. Does any of that happen at AA now? It has to start somewhere, even if union rules prohibit consequences for non-compliance.
You have to tell people what to do. Pre-departure beverages. Required. Addressing passengers by name with a warm welcome? Required. Monitoring for empty glasses? Required. Thanking passengers for choosing AA. Required.
The service protocoll should be outlined step by step and this should be tested during annual safety training.
Bullshit. Nothing is “required” other than paying the bosses top dollar and kissing their asses. NOTHING ELSE MATTERS – NOTHING. Everyone else can go to hell. Those at the top shit on everyone else, and that’s what trickles down. This is the “great again” America that you parrot.
Dude, in your anger you have me confused with someone else. Don’t act like one of those deplorables, please…
This is fundamentally correct. Most people want to get paid and they don’t want to be hassled. However, they do want to have pride in their work. Small changes in the company culture regarding taking pride in service and safety can be valuable. If you can get a critical mass, the culture will police itself.
@Ben … Easiest fix is for the passengers to decide which airline to pay their money .
It is in the power of the passengers to Choose and Pay for their airline of their Choice . No one forced them to choose. This is why complaining about n airline is futile … the complainers Chose their means of travel .
Choose wisely and live with the choice .
While DL screams about premium premium premium and UA’s Kirby says they are the best airline in the galaxy, I feel like AA’s gameplan was to compete with Frontier and Spirit. And from their employees to their customers they seem to have executed that gameplan well, unfortunately. A massive company culture change is also warranted if AA wants to really compete with the other two. IMO.
That being said, I’ll still probably churn and burn an AA card for that sweet, sweet JAL F redemption lmao
I never understood that gameplan because AA’s costs have always been higher than F9 or NK.
Every flight attendant I’ve spoken to at AA repeats the same story :” FA born outside of the USA get the same comments from pax asking why certain crew members are much more attentive than others and the answer is crew from other countries don’t get the job protections from US crews. The work visa is a privilege that can be revoked at any time.”
I do not know the last time I was offered a PDB on AA when I have been up front.
I suspect this is a result of the sizable boner they have grown about pushing back well before the scheduled departure time, starting boarding well prior to the scheduled boarding time and being fixated on nothing but getting people seated and closing the door.
Good analysis .
If you don’t start getting paid until the front door is closed, why waste time with PDB?
Wear that hat and there’s a risk of denied boarding!
Starlux should be granted cabotage rights in the US and codeshare Alaska and American flights.
#6. Divorce themselves from the hangers on Management of America West.
This. AA will never be a good airline while anyone that worked for America West/USair is still there, or anyone that trained under those people. They need a complete corporate house cleaning
THIS. Especially USAir. It truly was the worst U.S. airline ever. They need to salt the ground of anything it still touches and bring in an Indian shaman to rid themselves of the bad USAir energy.
Vasu Raja, creator of the failed strategy that cut the sales team significantly and set the airline back even more, was an AA guy.
Scott Kirby, the architect of the UA turnaround, was an America West guy.
It’s an oversimplification to look at what airline someone worked for 15-20 years ago and blame any issue on that.
One big structural problem is AA has fallen behind on their network. For all of AA’s talk about the schedule being the product, they have an underwhelming network except for people in fortress hub markets. And those people are flying AA regardless (seemingly AA’s strategy the last decade.)
So, ok – AA needs to be more premium. Where are these premium customers going to come from? They are people that have choice in carriers. And right now, in addition to inferior product quality, AA often has an inferior network for people with choices.
* For domestic flyers, they need to go after customers in competitive hubs. NYC, LA, Chicago, SF, Boston – all places they have ceded to UA or DL post-merger. The AA network in these cities is often beat by UA or DL or both.
* For international flyers, they need to fly where more people are going. AA cannot move many people internationally without 1-2 stops. AA relies too heavily on JV partners, requiring a stop in LHR or TYO, and those stops also create shorter longhaul flights and inherently less desirable. UA can fly people to a huge chunk of the world via 0-1 stop in EWR or SFO. AA’s international network in JFK and PHL is small relative to UA and DL and heavily seasonal, and ORD & LAX feel forgotten.
I agree on the WiFi, customer service, delay games they play and food options in Economy but you are off on the coffee and espresso.
You are a self confessed coffee lover and while nothing wrong with that, it’s no where near the other issues in importance to most customers. This isn’t Starbucks or whatever crazy overpriced joint you love, it’s an airline. Buy whatever you enjoy at the airport before getting on the flight.
As for the loyalty it’s still the top of the industry and with some basic easy research, and flexibility flights can be found for 10,000 miles or less daily. Or the cost of a few meal plans subscriptions through AA Shopping or no stay hotels bookings. Granted flexibility isn’t an option for many business customers but most can afford it on the company’s dime anyways. And usually are the biggest gate lice anyways.
I agree with points 1-4. Spot on!
AAdvantage is great, though. I’m a 400K LP/Yr EXP and I clear every upgrade. Out of every hub. The mantra of upgrades are dead just isn’t ringing true for me. AAdvantage is what makes me put up with AA, and on balance it’s worth it.
Jerry must be very VEry VERY special. Been EXP for many years and I’m at 368K Loyalty Points — and I can count the number of upgrades I’ve received on one hand. And I don’t typically fly out of their hubs, which theoretically should make it more likely that I get upgraded (since it is easier for me to “defect” from AA to other airlines which have much bigger footprint at my home airport).
Some of my common routes:
-AUS/MIA
-AUS/DFW
-DFW/ATL
-ATL/MIA
-JFK/AUS
-MIA/Caribbean
I honestly nearly always clear upgrades. Maybe it’s Austin.
I loved when AA was trying to make Austin a thing with connecting flights through there from TPA and other cities. Flights were cheaper, airport had good food, wasn’t busy and upgrades were easy.
Sadly it didn’t last long as it didn’t make financial sense.
If free upgrades are gone and you can get most other elite benefits just from having a credit card then why bother with elite status? Unless American does something very unlikely like promising Executive Platinums 4 saver seats a year in any cabin on any flight then free upgrades are the only benefit that matters.
The fact that you used a disgusting symbol of hate in your story has cost you another reader. Be smarter next time.
Then you’re a reader I don’t want, just as foolish as the MAGA Trump voters.
I have no time for the people who cannot appreciate a little humor. Life is too short.
I hope get the same thing John McCain got.
Snowflake
I wonder how many AA executives actually fly American flights. Are they oblivious to all these issues or are just busy devising more ways to milk money from their milage program.
Interesting that, in your 5 point plan, you never addressed the lack of vision and responsibility towards the shareholders coming from AA’s Board. They have consistently and highly compensated a failed CEO and his management team for the current state of the airline. Without a complete Board replacement, and subsequent C Suite disposal, don’t expect any changes…none.
With that said, stop expecting premium service from a low cost carrier pretending to be what AA used to be. The less you expect, the less disappointed you will be.
Aviation insider JonNYC is likely nothing more than an internet sleuth who gets 3 minutes ago news stories.
Matthew ; these are customer service points that would not affect Americans bottom line.
Robert Isom isn’t capable of finishing what he started. Increasing regional hub focus and cutting long haul routes. More regional traffic out of DFW , CLT , PHX , and PHL will yield the highest revenue. Canceling wide body orders and cutting the international network down to LHR , TYO , CDG , MAD , maybe HKG whatever is bare minimum. The transcon has peak and off peak times so there is no need for JFK LAX 8X daily.
Shareholders want results.
Apparently, free wi-fi is far more important than getting to one’s destination safely.