In This Article:
American Airlines got its corporate travel strategy badly wrong after the pandemic—and it’s still paying the price. As business travel recovered, the carrier tried to push customers toward booking on its website and app in a bid to reduce travel agency commissions and the millions of dollar spent offering companies perks to discount for being their carrier of choice The airline began removing some fares from its corporate booking channels to encourage customers to book directly with American, while also limiting its loyalty program to those booking directly. The strategy faced a backlash and corporate customers started to abandon American benefiting rivals United Airlines and Delta Air Lines In May, American cut its revenue forecast and in July flagged $1.5 billion in lost revenue in 2024 due to the move.