American kept just $71 million on nearly $17 billion, and is purportedly adding more widebodies. The people who built American Airlines’ debt want to fix it.
Growth is not the answer when every new seat mile earns less than the last. Delta and United learned that discipline and that premium is what prints margin. American keeps reaching for size, which is the one lever that has not worked.
The order is not a done deal and the oneworld alliance is growing while Star has lost some carriers in the last couple of years, but as the only carrier with an in-country alliance partner the Fort Worth, Texas-based carrier will have to be strategic and successful if they could grow their way out, but how much more debt could the airline absorb?
A great solo travel tip spotted this week on Live and Let's Fly.
