Latest news with #AAdvantageBusiness
Travel Weekly
24-07-2025
- Business
- Travel Weekly
American's Q2: Travel agency sales rebound is continuing
American Airlines says it has recovered close to three-quarters of the sales revenue share that it lost when it was aggressively pushing to drive bookings to its website, app and NDC-enabled channels. American has estimated that strategy, under which it pulled more than half of its fares out of the legacy GDSs and slashed corporate and agency sales support in 2023 and early 2024, cost it $1.5 billion in revenue last year. It also said that its industry share of indirect-sales revenue was down 11% from its historical average at its nadir, during the second quarter of last year. But for the second quarter that ended in June 2025, American's indirect sales share was off just 3% from its historical average, the carrier said. "We're really pleased with our performance getting back on track," CEO Robert Isom said during the airline's call Thursday to discuss its Q2 results. The improvement began after the airline abruptly reversed its strategy in late May of last year. Since then, American has re-engaged with corporations and the corporate and leisure agency communities by revamping its sales division with substantial hirings of account managers and sales staff. It also restored content to the GDSs. And American has made several customer-friendly changes to its AAdvantage Business program for small and midsized companies. Isom said American's corporate sales were up 10% in the second quarter, a number that compares favorably to the low single-digit increase reported by corporate travel juggernaut Delta. American said it expected to be down 2% from its historical indirect sales share in the current quarter and predicted it will achieve a full recovery by the end of the year. "I do believe the last few percentage points -- going to be hard," Isom said. "But I also think they're going to be the most profitable points we bring in." He said the airline believes it can eventually push ahead of its historical share level. American's Q2 results, by the numbers For the quarter, American reported net income of $599 million. Operating revenue was $14.4 billion, up 0.4% year-over-year and $110 million better than analyst expectations, according to the investment site Seeking Alpha. Operating expenses were up 2.4% year-over-year. American reported a pretax operating margin of 5.8% on operating income of $1.14 billion. American is guiding toward an operating margin for the current quarter of between -1% and 2%. Executives said that the carrier has been hurt more than United and Delta by the weak prices this year for domestic economy tickets due to its outsized proportion of domestic flying. But AA said it also expects tickets prices to inch upward beginning in August as airlines collectively reduce capacity and with demand on the upswing. American Airlines stock was down nearly 8% in midday trading.
Travel Weekly
10-07-2025
- Business
- Travel Weekly
American creates AAdvantage Business tier for its highest spenders
American Airlines on July 21 will add a new tier to its AAdvantage Business program. It's called AAdvantage Business Select and is for companies that spend at least $250,000 in a calendar year. AAdvantage Business Select offers savings of up to 4% on eligible fares, Preferred Group 5 boarding and immediate access to company-earned miles for free travel and employee transfers. American requires companies that don't qualify for Select to have a minimum of five registered travelers and spend at least $5,000 on eligible flights over the last 12 months before it can use miles. All AAdvantage Business members continue to earn one AAdvantage mile for every $1 spent on eligible travel, and registered travelers can earn additional loyalty points. American introduced AAdvantage Business in October 2023 for small and midsize companies as a replacement for the Business Extra program. Since launching the program, American has made other changes to AAdvantage Business. Last October, the carrier added policy control, enabling travel managers to set corporate travel policies in the program's travel management portal. The carrier in July 2024 expanded point-accrual capability to bookings in all channels after limiting it to direct bookings. Source: Business Travel News
