Skift Take
American Airlines has made a lot of excuses for its performance this year. It blames so many of its problems on a labor dispute and the grounding of the Boeing 737 Max. But perhaps there's something more here?
When airline insiders gathered between 2012 and 2016, many asked a simple question: What's wrong with United Airlines? They saw a company with so much potential, including hubs in the largest U.S. markets and an unbeatable Asian franchise, that repeatedly disappointed investors and customers.
But under new leadership, United has its mojo back. So the insiders have moved on, whispering (or sending me text messages) to ask about another U.S. airline. What, they ask, is the problem at American? Why is it underperforming peers and disappointing its best customers with late flights and often surly service? When will executives in Dallas/Fort Worth understand they're dealing with a crisis?
This was the conventional wisdom before Thursday, when Delta Air Lines snatched a 20 percent share in American’s most important Latin American partner. American downplayed the move, saying its tie-up with Latam Airlines produces only $20 million in annual incremental revenue. But American had bigger plans for its relationship with Latam — the two airlines sought antitrust immunity in some markets— and it is remarkable South America's top global airline will leave American's fiefdom for Delta's. The spin aside, this is bad news for American, which relies on South American routes for a significant share of its revenue.
Perhaps if Delta had made this move in a vacuum, others would have given American the benefit of the doubt. But
