American Airlines is striving to transform its image and attract more travelers.
Despite not being a favored choice among fliers, the airline is implementing various strategies to enhance its customer experience. By acquiring new aircraft and expanding its premium services, American is on a mission to close the gap with industry giants, United and Delta.
Last quarter, while Delta and United reported strong profits, American Airlines saw a notable loss. In the first nine months of the year, Delta made $3.8 billion and United $2.3 billion, whereas American only recorded $12 million in earnings. This disparity is further reflected in the stock market, where American’s value has diminished while its rivals have thrived.
Customer satisfaction ratings reveal that American Airlines is struggling, often ranking low for punctuality among U.S. carriers.
Clearly, a turnaround is necessary.
One major strategy is the expansion of premium seating options. American plans to increase its lie-flat and premium economy seating by 50% on long-haul flights by the end of this decade. The airline is also committed to upgrading its older fleet and enhancing lounge experiences.
In June, American introduced its Boeing 787-9 aircraft on the Chicago to Los Angeles route, featuring 51 Flagship Suite seats complete with privacy doors and lie-flat beds. This model is now being utilized on international routes and has become the most profitable aircraft in the fleet.
In addition to the Boeing upgrades, American will unveil a new Airbus on December 18 aimed at enhancing luxury offerings. The first A321XLR was delivered in October, set to operate routes from New York to Los Angeles. This aircraft includes 20 Flagship Suites with lie-flat beds, privacy doors, and 12 premium economy seats arranged for added comfort. As more planes are delivered—50 have been ordered—the airline plans to expand its route options, including a new service from New York to Edinburgh.
American is confident that these enhancements will lead to significant revenue growth by 2026. Chief strategy officer Steve Johnson noted, “As these changes that we’re making are introduced and have some time to gel, you’re going to see them deliver value to us.”
This year has also seen enhancements in the premium customer experience. In September, the airline partnered with Champagne Bollinger to provide champagne for business and first-class flyers both in-flight and in lounges. In October, a collaboration with Lavazza coffee introduced premium options for travelers starting in 2026. Furthermore, a partnership with Raven + Lily is set to offer chic amenity kits for first, business, and premium-economy-class travelers on select flights.
Another substantial shift for American Airlines loyalty program members is the recent credit card agreement with Citibank established in 2024. Ending its relationship with Barclays, American will now provide exclusive benefits through Citi co-branded credit cards. This is a strategic move, given that co-branded cards can significantly enhance airline revenue; United and Delta already benefit from similar exclusive partnerships with Chase and American Express. American’s change could be pivotal—Delta generated $7 billion from its collaboration with AmEx last year, with revenue expected to reach $10 billion.
