American Airlines, which is currently the world’s largest airline, recently announced its fairly positive third quarter results. The company declared profits in line with Wall Street’s predictions and per share earnings of $1.13 based on technical adjustments. Revenue for the airline’s summer quarter was marked at $11.56 billion, which is just off the $11.57 billion mark set by most financial analysts.
Previously, American Airlines had indicated that the rise in fuel prices resulted in the stock going down to 42% in this financial year, which is highest among all the other U.S. based airlines. Additionally, the company indicated that its revenue for each seat it flies a mile is expected to grow by less than some of its rival companies.
Numerous experts have also raised concerns regarding American’s lack of technological advancement to better manage and streamline business operations, improve customer experience, all in addition to leverage analytics, machine learning, AI and big data analytics.
Pushing Beyond the Unknown
American Airlines is currently focused on four strategic pillars to ensure a healthy company and a competitive edge for the long-term roadmap which includes innovative thinking, world-class service, a focus on its team, and revenue and cost initiatives. After a thorough review of the American Airlines’ strategy in this regard, the aviation giant’s plan to redefine its customer experience is worth noting down:
- A continuous effort to expand the world’s largest aviation network to even more destinations for the general public. The company also announced a planned service to important locations such as Dubrovnik, Croatia; Berlin; and Bologna, Italy. This makes American Airlines as the only airline to serve Bologna and Dubrovnik among the North American companies.
- The company also enables activated live TV on domestic aircraft, with twelve free channels that is made available to all cabins. Live TV is expected to roll out throughout the airline’s domestic mainline fleet by 2019. Moreover, American Airlines already offers live TV on its long-haul international flights, hence, keeping only the U.S. airline to offer the same.
- American Airlines also continue updating food offerings for reflecting evolving consumer tastes and choices. The airlines giant has entered into an exclusive partnership with Zoës Kitchen as the drive to offer healthy choices and vegan options on transcontinental flights for global customers.
Based on the above research, the strategy outlined by American Airlines makes complete sense. Most importantly, it is very low-risk and it is believed that the time has come for American Airlines to push the envelope in terms of redefining its strategy.
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