American Airlines is taking nothing for granted in wooing passengers with discounted fares and employees with profit-sharing. Both moves, it hopes, will generate revenue and profits.
If you take Delta at its word, then fears that the introduction of Basic Economy fares to compete with the ultra-low-cost carriers on price would dilute the spend of usually higher-paying passengers haven't been borne out. Still, the situation is fluid as other legacy carriers are set to introduce these discounted fares, as well.
Hyperbole or reality? American Airlines thinks its upcoming basic and premium economy will be huge, akin to its launching bag fees in 2008.
Leadership isn't just about energy and enthusiasm, which recovering United CEO Oscar Munoz seems to have plenty of. But it can't be dismissed, either.
Spirit's Baldanza has a lot of respect for Delta's management, and Baldanza and the Spirit model are widely respected within the airline industry. With legacy carriers getting much more aggressive about matching Spirit's fares, the ultra low-cost carrier is definitely feeling it but Baldanza insists that Spirit can take a punch.
Ah, the Golden Age of airline financials may have run its course despite low fuel prices. That was quick.
American would be turning a blind eye to half of its business if it didn't figure out a more effective way to compete with Spirit and other low-cost carriers.
FareCompare's Rick Seaney, the new poet of fare hikes, likens airlines' current strategies to "a bar brawl in slow-motion.” Airlines are resorting to targeted fare increases because fares are too high to hike across the board.
Are Delta, United, American and Southwest colluding over seat capacity and keeping fares high? Whether it is colluding or signaling they sure are watching each others' backs on capacity policies.
If you advertise it, they will come -- and your servers had better be ready, Southwest.