American Says Actions Against Discount Airlines Paid Off
Photo Credit: American Airlines is hopeful that its new international premium economy section will solve some of its revenue problems. American Airlines Group
Skift Take
American is getting even better at wringing revenue out of its customers.
After ultra low cost airlines expanded in some of American Airlines' core markets a few years ago, American took an aggressive approach. Instead of reacting passively and allowing discounters to gain share, it matched prices, flooding the market with cheap fares.
In the short term, this was costly to American, which, like other U.S. airlines, is earning less revenue from ticket sales than last year. But on the carrier's second quarter earnings call Friday, American President Scott Kirby said the strategy is working.
"They aren't growing in our markets anymore, at least to a large degree," Kirby said.
American has higher costs than Frontier Airlines and Spirit Airlines, the two largest U.S. ultra low cost carriers. But Kirby told analysts A
