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American Airlines Essay

805 Words4 Pages

On May 1, 1981 American Airlines introduced AAdvantage(r) as the first airline loyalty program of its time. This acted as the precedent in all loyalty programs that followed. The 1980s were also filled with a concerning number of hijackings in which the terrorists requested to be taken to Cuba. (Russell, 2001)
On April 2, 1990 Flight 658 (an Airbus A300) was hijacked by a gunman armed with a machine gun in Haiti. He demanded to be taken to America but later disappeared. On March 27, 1991 American Airlines served its one billionth customer and six years later the company became a nonsmoking airline. (AA, 2017)
The 2000s were an especially eventful and sad time for American Airlines. The decade began on a positive note with the January 10, 2001 …show more content…

The airline operates on a hub and spoke system. This means that the central airports or “hubs” act as coordinators of travel plans while flights are flown out on routes or “spokes”. A hub and spoke system allows an airline to offer more flights for passengers. (Bonsor 2001) The airline has 10 hubs: Charlotte, Chicago O’Hare, Los Angeles, Miami, New York- JFK, New York- LaGuardia, Philadelphia, Phoenix, and Washington with Dallas/Fort Worth being the main hub and headquarters. The Dallas/Fort Worth hub has had a major economic impact on the city and provides thousands of jobs. (PlaneSpotter n.d.) Per numbers in the 2015 report by Quora, American Airlines employs 113,300 men and women. The company lists six main executive officers: Doug Parker (CEO/Chairman), Robert Ison (President), Elise Eberwein (Executive Vice-President), Stephen Johnson (Executive Vice-President), Derek Kerr (Executive Vice-President/CFO), and Maya Leibma (Executive Vice-President/CIO). (AA, …show more content…

(Josephs, 2018) Domestically American Airlines reached 114,894,464 rpm; internationally 52,066,847 rpm. This concluded with a total of 136,941,705 rpm. (BTS, n.d.) The Available Seat-Miles or (ASM) for the 2017 fiscal year for American Airlines was a sharp decline compared to the year prior. Domestically the airline reached 135,040,877 asm; internationally 65,465,720 asm. This concluded with a total of 165,628,765 asm. (BTS, n.d.) The load factor percentage for the 2017 fiscal year for American Airlines was the largest recorded for the company. Domestically the airline reached 85.08%; internationally 79.53%. This concluded with an average of 83.27% load factor. (BTS, n.d.) The revenue from the years 2013-2016 is as follows: $26,743,000,000 (2013), $42,650,000,000 (2014), $40,990,000,000 (2015), $40,180,000,000 (2016). This has been a period of growth compared to the steady decline of the company after the tragic events of September 11, 2001. (AAL Income, 2018) The stock performance of American Airlines (AAL) has been a general growth. The market closed each year with these recorded values: 25.25 (2013), 53.63 (2014), 42.35 (2015), 46.69 (2016), 52.03 (2017). (Nasdaq,

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