How American’s CEO plans to beat Delta Airlines
The Street wrote a good article detailing what American Airlines Chief Executive Officer, Doug Parker, said during last week’s JPMorgan transportation conference. Parker told attendees that despite the fact that American has a revenue gap when compared to Delta, that American is on its way to closing the gap. Parker assured attendees that the “revenue gap” would be closed because of American’s “aggressive fleet modernization.” To Parker’s point, American did have the second oldest fleet in the industry and due to American’s investment in fleet modernization, they now have the youngest fleet in the industry.
For example, the average fleet age at Southwest is 10.4 years, United is at 14.4 years, and Delta is at and 16.6 years. Where does American stand? American’s average fleet size will be at 9.8 years by the end of 2017.
At the end of the day, this is all talk. American is still suffering in many other areas. American saw a passenger traffic drop of 3.3% for the month of February 2017. Even worst, American’s performance rating still lags behind Delta, United, Southwest, Alaska, and so on. In fact, American only beat out Spirit and Frontier on performance, meaning, they came in last of all major U.S. airlines and couldn’t even keep up with some smaller airlines (ExpressJet, Hawaiian, JetBlue).
Source: The Street