General presentation of American Airlines :
We now invite you to learn more about American Airlines with a detailed presentation of this group. This will give you a better understanding of the company's main sources of revenue, as well as its challenges for the future and its capacity for growth.
The American Airlines Group is an American company specialising in air transport. It is also the largest airline in the world today.
In order to better understand the activities of this company, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :
- Passenger transport is of course the largest part of American Airlines' activities and alone generates more than 91.8% of the company's turnover.
- Freight transport is in second place and generates approximately 1.9% of the group's turnover.
- The remaining 6.3% of sales, i.e. 6.3%, came from various ancillary activities.
- Currently, the American Airlines Group operates a fleet of 942 aircraft.
To know the competition of the American Airlines share:
After learning some interesting information about American Airlines, we suggest you take a tour of its main competitors on the market. You will then be able to take into account their major news and all the information concerning them and which are likely to influence this title.
- United Airlines: Of course, United Airlines is the largest direct competitor to American Airlines. This other American airline currently employs 86,852 employees and has a fleet of 1,262 aircraft, the largest fleet of aircraft to date and in the world. It is also part of the United Continental Holdings group, formerly known as UAL Corporation, which is based in Chicago. United Airlines is also one of the companies behind the creation of Star Alliance, which is the largest association of airlines in the world. It serves more than 170 countries with 1 000 stopovers. The group also has a subsidiary specialising in regional services called United Express.
- Delta Airlines: Finally, the second direct competitor of American Airlines is Delta Airlines, which is also an American company and operates scheduled flights in the United States but also throughout the rest of the world. This airline is headquartered in Atlanta. It should be noted here that the Delta Airlines group is the result of the merger, in 2008, of Delta and Northwest Airlines, which made it one of the largest airlines in the world. The group employs more than 75,000 people and serves 375 destinations in 66 different countries.
The strategic alliances set up by the American Airlines group :
Of course, as you can imagine, American Airlines has not only enemies but also valuable allies. We now propose to you to discover some examples of partnerships recently set up by this airline, most often with competitors, and which aim to boost its growth.
- JetBlue: In 2020 in particular, the American Airlines group has an interesting partnership in place with JetBlue which is another low cost airline. These two competitors have thus decided, through this alliance, to pool their assets in order to allow each of them to sell seats on their respective flights and share the benefits of their frequent flyer programs.
- Qatar Airlines: Qatar Airlines used to be one of American Airlines' major allies as the two companies had a code-sharing agreement in place. However, this agreement ended in 2017, as did a similar agreement with Etihad due to a dispute over alleged state subsidies to major Gulf carriers. In the same year, Qatar Airways also abandoned its plan to acquire 10% of the American group. But in 2020, the two companies decided to re-establish their code-sharing partnership in order to increase their commercial cooperation. As the above-mentioned problems have been resolved, this new agreement will enable the two companies to provide services to the markets to better satisfy their customers.
- RAM: Another interesting partnership set up by American Airlines has been created with the company Royal Air Maroc, also in 2020. This is also a code-sharing agreement like the one we've just talked about, which had been signed with Qatar Airlines previously.
We would now like to take a closer look at the pros and cons of American Airlines stocks, that is to say at the major strengths and weaknesses of this company.
With regard to the group's main strengths, the following points are worth noting in particular:
- In particular, the American Airlines group enjoys strong recognition as the best loyalty programme for its customers, which makes it easier for it to win new market shares.
- The group's brand image is also one of its strengths, as it is both strong and constantly expanding, particularly since 2010 and thanks to the creation of new routes to as many destinations.
- The group also enjoys a good image with customers because of the quality of the services and entertainment offered on board its aircraft.
- Finally, the broad reach of this airline, which serves more than 250 different destinations and has a very large fleet, is also one of its major advantages.
Finally, here are the two main weaknesses of this company:
- Firstly, the group shows an unstable and rather worrying financial situation.
- Finally, low-cost companies represent an increasing threat to this company and continue to take market share from it.