American Airlines is striving to improve its reputation and financial performance by implementing a series of changes to its operations and services. Despite being the largest airline in terms of the number of flights, American has been lagging behind its major competitors, United and Delta, in terms of profits and customer satisfaction.
In the third quarter of this year, American reported a loss while Delta and United both posted profits. For the first nine months of the year, Delta earned $3. 8 billion and United earned $2. 3 billion, while American only reported $12 million in earnings. This has also resulted in a decline in the airline’s stock value, while United and Delta have seen growth in their stock value.
To improve its financial performance, American Airlines is focusing on increasing its premium offerings. By the end of the decade, the airline plans to expand its lie-flat and premium economy seating by 50% on long-haul flights. It is also upgrading its older planes and adding new lounges to enhance the customer experience.
In June, American Airlines introduced its Boeing 787-9 aircraft, equipped with 51 Flagship Suite seats featuring a privacy door and lie-flat beds, on flights from Chicago to Los Angeles. This aircraft is now being used on international routes and has become the most profitable for the company.
The airline has also received its first A321XLR aircraft in October, which will operate flights from New York to Los Angeles starting in December. This aircraft features 20 Flagship Suites with lie-flat beds and privacy doors, as well as 12 premium economy seats with winged headrests and increased privacy. American has ordered a total of 50 of these aircraft and plans to add more routes as they are delivered, including the New York to Edinburgh international service.
These upgrades and additions are expected to significantly increase revenues for American Airlines by 2026, according to the company’s chief strategy officer, Steve Johnson. He stated that as these changes take effect, they will bring value to the airline.
In addition to these upgrades, American Airlines has also enhanced its premium customer experience by partnering with luxury brands. In September, the airline announced a collaboration with Champagne Bollinger, offering champagne to its business and first-class passengers onboard and in its lounges. In October, it partnered with Italian coffee brand Lavazza, and starting in 2026, all passengers will enjoy premium coffee onboard and in the lounges. The airline has also partnered with leather goods brand Raven + Lily to provide stylish amenity kits for first, business, and premium-economy-class passengers on select flights.
Another significant change for American Airlines is its new credit card deal with Citibank, which will be in effect until 2024. The airline ended its partnership with Barclays and will now exclusively offer benefits with Citi co-branded credit cards. This type of partnership has proven to be highly beneficial for other airlines, such as United and Delta, who have exclusive deals with Chase and American Express.