Aircraft manufacturer Natilus wants to build a new type of airliner to rival Airbus and Boeing as the industry demands more efficient planes.
24.10.2024 - 16:09 / skift.com / Vasu Raja / Robert Isom / Meghna Maharishi
American Airlines reported a loss of $149 million for the third quarter as it continues to deal with the fall out of its distribution strategy.
The figure is an improvement from the year before, when American had a $545 million loss. However, the carrier is trailing Delta Air Lines and United Airlines as both reported third-quarter profits of $971 million and $965 million, respectively. American had revenues of $13.6 billion.
The carrier said that it was able to quickly bounce back from the CrowdStrike outage and Hurricanes Debby and Helene.
American CEO Robert Isom said the company is working to reset its sales and distribution strategy after its previous approach received significant backlash from travel agencies and caused a decline in revenues.
“We know full restoration of our revenue will take some time. But with the progress we’re seeing and the actions underway, we aim to fully restore our revenue from indirect channels as we exit 2025,” Isom said during the earnings call. “We will continue our relentless focus on reestablishing relationships with our business customers, re-embracing the agency channel, and making it easier to do business with American.”
For the third quarter, American said it renegotiated contracts with a majority of the largest travel agencies and many of its top corporate customers. It is also reintroducing traveler benefits for corporate customers, along with adding more sales account managers and support staff.
American previously championed a distribution strategy that involved selling tickets directly. Travel agencies filed complaints with the Department of Transportation over the changes, arguing that it was an anti-competitive practice.
The carrier received more backlash when it said it would let customers earn frequent flyer miles only if they booked tickets with certain travel agencies.
The botched approach ultimately led to the departure of chief commercial officer Vasu Raja. Now, American has been trying to return to a more traditional distribution strategy as it seeks to benefit from the same business travel boom that has boosted Delta’s and United’s profits.
Among the three major U.S. carriers, the transatlantic market has been a source of strength due to sustained demand for international travel.
Isom said that long-haul routes continued to do well during the third quarter. The carrier saw an 8% increase in premium revenues during the period, with 72% of premium cabin revenues coming from AAdvantage members. Loyalty revenues were also up 5% compared to last year.
And while American hasn’t seen the same surge in corporate bookings like Delta or United, Isom said managed business revenue was up 6%.
Robert Isom, the American Airlines CEO, is due to
Aircraft manufacturer Natilus wants to build a new type of airliner to rival Airbus and Boeing as the industry demands more efficient planes.
A federal jury in Texas decided American Airlines can recover $9.4 million in damages from “hidden city” ticket platform Skiplagged, which continues to offer the airline’s tickets at steep discounts.
It was late August when I arrived at the outer limits of the Stockholm archipelago. Much of the Northern Hemisphere was still luxuriating in all-out summer splendor, but Sweden’s long summer days of nearly 24-hour sunlight had distinctly ended. I had traveled to the archipelago, an area covering 30,000 islands, islets, and granite skerries in the Baltic Sea, to immerse myself in the islands’ remote landscapes. I would be traveling along part of the Stockholm Archipelago Trail, a new 270-km hiking path (approximately 170 miles) that stretches across 22 islands off Sweden’s east coast, making it possible to venture deeper into the outer archipelago.
One of my biggest pet peeves when I am flying is people who cannot follow the rules when it comes to boarding (and disembarking, for that matter). I was thrilled to see that American Airlines is on my side and is testing a new boarding process technology that will crack down on people who try to board earlier than their assigned boarding group.
The Biden administration is slapping American Airlines with a record-setting punishment, criticizing the carrier's treatment of passengers who use wheelchairs for mobility devices — and their essential equipment.
Saying that American Airlines mistreated disabled air travelers who use wheelchairs, the U.S. Transportation Department on Wednesday announced a $50 million fine against the carrier. Transportation Secretary Pete Buttigieg called the agency’s penalty the highest ever levied against an airline for violating protections for fliers with disabilities.
The Department of Transportation announced Wednesday that it would fine American Airlines $50 million for “numerous serious violations of the laws” that protect passengers with disabilities.
Skiplagged.com said it will still offer customers a way to book a popular travel hack despite a court partly siding with an airline in a lawsuit against the company.
It's that time of year again: The holiday season is nearly upon us. Consider this your call to start booking those holiday trips.
If you hold elite status with Delta Air Lines, United Airlines or Southwest Airlines, American Airlines is offering to match your status for at least four months so you can earn status in a different loyalty program without having to start from scratch.
Have some extra American Airlines AAdvantage miles to spare?
American Airlines is testing a new system to make sure travelers board with their designated groups.