American Airlines (AAL) has had a rough start to 2025.
On Jan. 29, American Airlines Flight 5342 and a Black Hawk helicopter collided mid-air over the Potomac River in Washington, D.C. The collision killed all 64 American Airlines passengers and all three Black Hawk crew members.
This was the first major crash a U.S. commercial flight has had in 16 years and the most fatal U.S. airline disaster in almost 24 years. Since the crash, American Airlines’ stock price has declined by roughly 27%.
The incident and other recent plane crashes have heightened fears of flying among consumers across the country.
Related: Southwest Airlines makes drastic cost-cutting decision
According to a recent survey by The Points Guy and The Harris Poll, while 72% of Americans believe that airline travel is now safe, nine in 10 Americans fear flying. Also, 65% of Americans said the recent plane crashes have made them more nervous about flying.
American Airlines has a plan to address recent customer frustrations
Amid this concerning trend, American Airlines is stepping up its game to attract more customers. This also comes during a time when it is facing increased competition from other major airlines.
In a leaked memo, American Airlines informed all flight attendants on March 7 that the company will usher in a “new era of support” that cracks down on major performance issues that have led to customer complaints about food, cabin cleanliness, etc.
Shutterstock
“Our new approach means more leaders will be in the terminal to support you,” reads the memo. “They’ll be armed with mobile technology to help troubleshoot operational challenges, address potential customer service failures, and facilitate correction of cabin appearance, catering, and other issues.”
The company is also creating a “dedicated team of performance specialists” focused on “coaching, guiding and ensuring a balanced and consistent approach to policies.”
“We are shifting away from a traditional structure where many leaders were behind their desks,” reads the memo. “Instead, we’re moving to a leadership model that increases operational availability.”
Implementation of this new plan will take effect on June 9.
The move from American Airlines comes after some of its customers have recently taken to social media to share their poor experiences flying the airline.
View the original article to see embedded media.
More on travel:
- Trump starts presidency with three executive orders affecting travel
- Government issues new travel advisory on popular beach destination
- Another country just issued a new visa requirement for visitors
View the original article to see embedded media.
American Airlines’ most recent earnings report revealed that while it faced a 72% year-over-year increase in operating income (the company’s profit after expenses) during the fourth quarter of 2024, it faced a 0.1% decrease in domestic passenger revenue per available seat mile.
American Airlines is facing tough competition
Over the past few months, American Airlines has faced increased competition. Its main competitors have recently been focusing on elevating premium experiences for passengers to boost their revenues.
For example, in January, JetBlue (JBLU) launched its new “EvenMore” bundle, which offers travelers perks such as “early boarding, extra legroom, a prime seat toward the front, dedicated bin space, free alcoholic drinks and a premium snack offering,” according to a Jan. 23 press release.
Related: JetBlue unveils generous offer for travelers amid weak profits
Late last year, Southwest Airlines (LUV) also announced that it would be “ushering in a new era” focused on elevating the customer experience by adding assigned and premium seating to its aircraft and updating its boarding process to make it more efficient. It also vowed to maintain its bag policy, which allows customers to check in two bags for free.
Spirit and Frontier, also both launched premium ticket bundles in 2024. Delta is also reportedly planning on testing out its own Comfort Plus fare bundles this year, which is expected to include extra-legroom seats.
Amid growing competition, American Airlines recently began installing high-speed satellite Wi-Fi on its dual-class regional aircraft. It also started implementing boarding automation technology that ensures passengers are boarding with their assigned groups.
“In 2025, we plan to operate with excellence and efficiently deliver safe and reliable operations, take a fresh look at our product and service as we sharpen our focus on the customer experience, continue to strengthen our network, both organically and through our airline partnerships,” said American Airlines CEO Robert Isom during an earnings call on Jan. 24.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
