The COVID-19 virus has impacted American Airlines negatively and the entire airline industry and American Airlines’ competitors. American Airlines has been heavily impacted by the COVID-19 virus, causing the company to lose many passengers and flight revenue. American Airlines is struggling with losing money due to this huge blow. The virus has also caused the company to have fewer flights available for sale leading to a sharp increase in fares. With COVID-19 having such negative consequences, it can be seen that this is not an issue that was easily dealt with by American Airlines or its competitors. The airline industry has incurred significant losses from COVID-19, which are impacting the airline companies head-on. American Airlines and its competitors attempt to thrive in the extremely competitive airline industry that no one is truly winning (Suk et al. 986). American Airlines’ competitors are aware of this and have decided to take on more risks to increase their revenues. Airlines such as Southwest Airlines, AirTran Airways, JetBlue Airways, and U.S. Airways have all experienced financial losses due to COVID-19. As they have adjusted their prices higher to compete with American Airlines and other airlines, they are also incurring increased costs associated with safety issues such as the COVID-19 virus outbreak.
Covid-19 has been incredibly destructive to the airline industry all over the world. According to an article written by J Amankwah-Amoah, the covid-19 pandemic has caused many airline companies to have issues with their financial performance. Amankwah-Amoah states that the COVID-19 pandemic, or virus outbreak, has caused many airlines worldwide to lose a large amount of money, causing them to experience financial issues and severe losses (Amankwah-Amoah 101802). The airline industry has lost billions of dollars due to this virus outbreak. Amankwah-Amoah explains that the world’s airlines are experiencing great financial losses mainly due to COVID-19.
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American Airlines is one of the largest airlines in the world. American Airlines was established in 1930 by AMR Corporation. AMR Corporation was founded in 1926 and is based in Dallas, Texas. American Airlines has 128,755 employees and operates from hubs at Charlotte, Chicago-O’Hare, Philadelphia, and Phoenix. American Airlines operates 5,071 departures a day during peak travel season to 336 destinations in 54 countries on six continents. The company’s fleet consists of 1,632 aircraft (Smith 15). American Airlines reported that it offers approximately 6,700 flights per day for domestic and international travel in any given month.
American Airlines has several different divisions, including frequent flyer programs, cargo and ground support, and their participation in the Star Alliance. American Airlines has also partnered with other carriers to increase its industry presence. American Airlines holds a majority stake in several different partnerships that include British Airways and Virgin Atlantic. In addition to partnering with airlines such as British Airways, American Airlines participates in air transportation services such as the Gulfstream V (G-V) Private Jet Program. American Airlines is also a big player in the cargo industry as they operate around 2,000 Boeing 777 planes and have an agreement with UPS Cargo. American Airlines also has an interesting history with Delta Airlines. Both American and Delta were involved in three big mergers between 1989 and 1995, which Congress highly criticized.
One of the biggest modes for American Airlines is their frequent flyer programs operated by American and U.S. Airways. The revenue generated from these programs totalled $4 billion in 2010. This amounts to approximately 29% of American revenue coming from this source (Suzuki 294). One of American Airlines’ main competitors is the low-cost airline Southwest Airlines. Although Southwest does not fly directly into American hubs, they provide customers with many services such as connecting flights across American hubs and frequent flyer programs. The revenue generated by their partner Southwest Airlines totaled $1.3 billion in 2010, or approximately 9% of American revenue. Additionally, American Airlines has partnered with several other airlines to offer frequent flyer programs, including Air Canada, Aer Lingus, Air France/KLM, Alitalia, and ANA (Antonacci & Cuoco).
American Airlines is the largest airline in Dallas-Fort Worth International Airport (DFW) as they brought in approximately 50.5 million passengers in 2011. They are also the largest carrier at Chicago’s O’Hare International Airport (ORD) and the second-largest in Philadelphia Internatio
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