American’s rosier second quarter results mask the airline’s future challenges
Skift Take
Things look better at American because it's able to use its bankruptcy to avoid being held accountable or addressing its past mistakes. It owes its employees and shareholders a future that benefits more than just its own executive ranks.
American's parent company, AMR Corp., reported on Wednesday that revenue set a record in the second quarter as fares rose and more passengers filled its planes. And it turned an operating profit, minus the millions it spent on bankruptcy lawyers and severance pay.
The airline is cutting costs and making progress in labor negotiations. It's even losing fewer bags.
But the nation's third-biggest airline still faces huge challenges to succeed against United and Delta, which are similar to American in structure but much bigger. They're also profitable.
Analysts say American must expand and improve its route network to attract high-paying business travelers. It's weak on both the East and West coast
