American Airlines is determined to regain its foothold in the business travel market, following a reported loss of $149 million against revenues of $13.7 billion. CEO Robert Isom highlighted that the airline’s share of corporate and agency flying revenue currently sits 11% below historical levels during an earnings call on Thursday.
Earlier this year, the airline dismissed former Chief Commercial Officer Vasu Raja, who had attempted to boost direct business-class revenue by limiting loyalty point earnings for indirect bookings. This strategy, identified in a Bain report as detrimental to customer retention, has prompted American Airlines to revise its approach.
To recover lost ground, the airline is renegotiating travel contracts with major corporate clients, forming new partnerships with business travel agencies, and recently relaunching its Corporate Experience program. This initiative aims to provide corporate travelers with priority seating and expedited rebooking during flight disruptions. Isom noted that the airline’s business travel sector is currently 7% below its third-quarter performance from the previous year.
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