Customers won’t choose an airline that doesn’t get them where they’re going. But those are table stakes. Delta and United have pursued a premium strategy. American isn’t. But with American’s high costs, they need to earn a revenue premium for their product. That means customers need to spend more – on premium products, and choosing them over competitors.
The airline’s first quarter losses, and continued financial underperformance compared to Delta and United, show that improved operations aren’t enough. They’re just a start. Airline management, though, doesn’t seem to understand this.