The company gave an update on its quest to win back the road-warrior customers whose departure has been a huge loss for the firm
Oct 25, 2024
Earlier this year, American Airlines fired its former chief commercial officer, Vasu Raja, after he tried to increase business-class revenue by bypassing corporate travel agents. One approach Raja implemented was to limit the ability of passengers to earn loyalty points when booking through third-party platforms. However, a Bain report found that this strategy alienated too many customers, prompting American to reconsider and adjust its approach.
Key takeaways
- In response, the airline is working to regain lost ground by renegotiating travel contracts with its largest corporate customers, establishing new partnerships with corporate travel agencies, and recently revamping its Corporate Experience program. The program offers corporate travelers priority seating and rebooking options during flight disruptions;
- “We know it will take time to fully recover our revenue,” CEO Robert Isom said during a conference call. “But with the progress we’ve made and the actions we have underway, we are on track to recover revenue from indirect channels by the end of 2025. We are committed to rebuilding relationships with our business customers, reconnecting with our agency partners and simplifying the process of doing business with American.”
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