Why American Airlines Stopped Making Money (The Mistakes That Cost Billions)

Описание: By several operational measures—such as flights scheduled and passengers carried—American Airlines is not only the largest airline in the United States, but the largest in the world. Yet when it comes to financial performance—profit margins, revenue efficiency, and overall profitability—it consistently trails its two biggest rivals, Delta and United.

This strange imbalance isn’t the result of bad luck. Instead, it’s the outcome of a series of strategic missteps—many of them made at the most critical moments.

Since 2020, American Airlines faced repeated crossroads where management could choose the safer long-term strategy or the riskier short-term one. Time and again, the wrong call was made.

During the early stages of the COVID-19 pandemic, airlines quickly realized that short-haul travel would recover faster than long-haul international travel, driven by border restrictions and passenger behavior. That understanding forced every major carrier to decide what to do with their widebody fleets.

United Airlines kept nearly all of its long-haul aircraft, placing many in temporary or long-term storage.

Delta Air Lines followed a similar path, with one key exception—retiring its aging and inefficient 777 fleet.

American Airlines, however, took a far more pessimistic view of recovery and permanently retired its A330, 767, and 757 fleets, cutting nearly 30% of its long-haul capacity.

That decision soon came back to haunt them.

By the summer of 2022, international travel demand surged. Vaccinated travelers on both sides of the Atlantic were eager to fly, and airlines were charging some of the highest fares in history due to pent-up demand. While competitors were close to full recovery, American Airlines could only operate around 80% of its normal schedule—simply because it didn’t have enough aircraft.

Manufacturing delays at Boeing further worsened the problem, with FAA delivery halts preventing American from receiving planes it was counting on before the peak summer season. As a result, the airline was forced to cut profitable and historically successful routes like Edinburgh and Shannon, missing out on one of the most lucrative travel seasons in modern aviation history.

This video breaks down how American Airlines’ decisions since 2020 shaped its current struggles—and why being the biggest airline doesn’t always mean being the most successful.

⚠️ Video Disclaimer

This video is intended for educational and informational purposes only. All analysis is based on publicly available data, industry reporting, and historical events. Financial performance, strategic decisions, and outcomes are discussed in a generalized manner and do not constitute investment, business, or legal advice. Interpretations reflect industry analysis and may vary over time as new information becomes available.