Unions Sound Alarm on American’s Performance

A group of labor unions representing workers at American met last week to discuss what they called the carrier’s “trailing financial performance."

American jets in Phoenix
American aircraft in Phoenix (Photo: AirlineGeeks | William Derrickson)
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Key Takeaways:

A group of labor unions representing workers at American Airlines met last week to discuss what they called the carrier’s “trailing financial performance” relative to its major competitors.

The gathering, made public on Friday, focused on American’s operations and “peer-trailing” earnings and the effect of the airline’s management on “employees and other stakeholders,” according to a statement from the participants.

“This landmark union leadership summit reflects our unified commitment to protecting our members, improving working conditions, and securing a more prosperous future for us and for American Airlines while demanding increased management accountability,” they said. “We are committed to maintaining a cohesive, coordinated labor coalition to address the opportunities and challenges ahead.”

The meeting involved officials from the Allied Pilots Association, the Association of Professional Flight Attendants, the Communications Workers of America-International Brotherhood of Teamsters Association, the Professional Airline Flight Control Association, the Transport Workers Union of America’s Air Division, and the International Association of Machinists and Aerospace Workers.

An American Boeing 787-8 Dreamliner. (Photo: AirlineGeeks | William Derrickson)

The unions said they discussed joint proposals for operational and service improvements that would better protect workers and benefit American overall. They also called for more transparency and accountability from management.

The group is expected to reconvene at the APA’s headquarters in Fort Worth, Texas, on Oct. 23.

American did not immediately respond to a request for comment from AirlineGeeks.

Behind The Pack?

Analysts have faulted American for failing to invest in its premium product at the same level as other legacy carriers. High-end travel has proven profitable and resistant to a slump in overall travel demand over the last year, and United and Delta are better positioned to attract those high-spending customers.

These factors have fed the perception that United and Delta are increasingly pulling away from competitors like American and Southwest, a view United CEO Scott Kirby endorsed earlier this summer.

“One thing that’s becoming even more clear… is the strength of the two brand loyal airlines really winning and everyone else losing,” Kirby said on an earnings call in July.

American recently posted results for a strong second quarter, with record revenue of $14.4 billion, although its total net income continued to trail behind United and Delta.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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