American Airlines, which is currently the world’s largest airline, recently announced its fairly positive third quarter results. The company declared profits in line with Wall Street’s predictions and per share earnings of $1.13 based on technical adjustments. Revenue for the airline’s summer quarter was marked at $11.56 billion, which is just off the $11.57 billion mark set by most financial analysts.
Previously, American Airlines had indicated that the rise in fuel prices resulted in the stock going down to 42% in this financial year, which is highest among all the other U.S. based airlines. Additionally, the company indicated that its revenue for each seat it flies a mile is expected to grow by less than some of its rival companies.
Numerous experts have also raised concerns regarding American’s lack of technological advancement to better manage and streamline business operations, improve customer experience, all in addition to leverage analytics, machine learning, AI and big data analytics.
American Airlines is currently focused on four strategic pillars to ensure a healthy company and a competitive edge for the long-term roadmap which includes innovative thinking, world-class service, a focus on its team, and revenue and cost initiatives. After a thorough review of the American Airlines’ strategy in this regard, the aviation giant’s plan to redefine its customer experience is worth noting down:
Based on the above research, the strategy outlined by American Airlines makes complete sense. Most importantly, it is very low-risk and it is believed that the time has come for American Airlines to push the envelope in terms of redefining its strategy.