The chief financial officer of the world’s largest airline said the carrier is positioning itself to be a “premium” option at the global level.
Speaking at the Skift Aviation Forum in New York on Thursday, American CFO Nat Pieper said the airline is investing in and improving its highest leverage points.
“That is an ongoing effort. So many different steps to the travel process. But I think we’ve made good progress. I feel like we’ve got momentum and we’re optimistic about where we’re going,” he said.
Customer experience, loyalty, network strength, and premium products will be leading priorities, he added, since they encourage customers to stick with the airline over time.
Pieper also said the airline is focusing on optimizing operations at LAX.
“Local yields are better than connecting traffic. If you’re going to win and jump on markets, you’ve got to focus on the local market. That’s what we’re going to do in Los Angeles,” he said.
“It’s going to be a gradual build as we get to the end of ’28, when T4 and T5 will be ready to roll, we’ll have 30 gates there,” he continued. Terminal 4 and 5 are undergoing an extensive $1.6 billion modernization.
When it comes to the financials, Pieper said the best way to maximize cash flow is to invest in the product.
“The ultimate goal for American is generate as much cash flow as we can… You can pay your balance sheet and get it into the shape that you want it, as well as generate enough cash to be able to reinvest in your product and have people continue to want to fly your airline,” he said.
