For Pilots Only: Aug 24, 2024

Connecting the Dots

Let's talk about American Airlines.

They recently made a strategic business decision that's come back to bite them – hard. Earlier this year, they decided to push corporate business travelers away from using booking tools and instead book directly on their website.

Now, for those of you who've never worked in the corporate world, let me break this down:

Most companies use travel booking tools to keep costs under control. These tools prevent employees from booking unnecessarily expensive tickets or making last-minute changes that could increase costs. It's how corporations manage their travel budgets effectively.

So when American decided to bypass these tools, they essentially asked corporations to give up control over their travel expenses.

What do you think happened?

You guessed it – many companies said, "Thanks, but no thanks," and shifted their business to other airlines like United and Delta who are being coy about how much this has benefited them.

The result? American estimates a $1.5 billion loss in 2024 and a vow to change their tactics.

Here's where it gets crucial for those of you looking at career moves:

1. American is slowing down hiring at mainline and their regional carriers.

2. However, American is at the height of retirements at the major carrier level.

3. They're still losing hundreds of pilots next year.

So, what's really going on here?

It's clear that this business decision isn't something they can recover from in just one quarter. It's going to take time, and we need to keep our eyes on the horizon to see how they adjust.

For those of you eyeing the job market, here's what to watch for:

1. Monitor American's hiring numbers at the mainline and regional level: Compare the number of conditional job offers they make at conventions this year to previous years. 

2. Keep tabs on their regional carriers. Ask your buddies on the inside: Are they hiring? Are they putting on classes? How many pilots are flowing up to mainline?

3. Watch United and Delta: They're likely to capitalize on American's difficulties. Look for anywhere they increase hiring (regional and mainline) and make route adjustments.

When one carrier takes a hit, others often gain.

That's the piece of the puzzle many are missing.

While everyone's focused on American's struggles, smart pilots are looking at what Delta and United might be doing to take advantage of the situation.

Remember, in our industry, one airline's turbulence can be another's smooth sailing. Stay alert, keep your options open, and be ready to adjust your flight plan if necessary.

Fly safe,

James

Wanna read more about American and their strategy?

American Airlines ‘regrets' NDC execution and vows to change tactics

American Estimates $1.5B Loss in 2024 Due to Corp. Strategy

American Airlines Wants To Resolve The Case Of The Missing $1.5 Billion

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