United CEO claims to be sealing American from Chicago, American responds with 5 daily flights and competitive routes to Los Angeles
American Airlines, a Fort Worth-based carrier, announces more new routes from two of its hubs, Chicago O’Hare and Los Angeles. For Background, the carrier has had competitive problems in key hubs Chicago, New York, and Los Angeles since the pandemic, with a slow return to operations. This raises a problem because those are the three largest markets in the United States, leading to a decline in revenue from reduced credit card and flight spending. Airlines make most of their money from business travelers and their loyalty programs, which is why they are experiencing revenue shortfalls. In an attempt to fight back, American is trying to regain market share in Chicago and is starting to compete again in Los Angeles. Following a statement from United CEO Scott Kirby claiming that United has won Chicago's market share and will keep adding routes to block American from expanding in Chicago, American responded with competition, both short- and long-haul, in Chicago and a short-haul expansion in Los Angeles.
American added seasonal service from Chicago to Kahului, Hawaii (OGG) on a 787 aircraft, offering 468 seats daily to Hawaii in addition to its route to Honolulu, Hawaii. American is also now flying from Chicago, twice daily, to Allentown, Pennsylvania (ABE), and Columbia, South Carolina (CAE). This is a competitive push, matching United’s service to Kahului. Expect service to one of the following next to continue the competitive push: Tokyo, Amsterdam, and São Paulo. American also announced service from Los Angeles to Washington, (IAD) and Cleveland, (CLE). This is another competitive move to match United's Los Angeles service and gain market share. American further announces a premium push in Los Angeles, upgrading aircraft serving London Heathrow to its 787 premium configuration, offering suites and more business-class seats. This is a major premium push, offering 51 business-class suites.
To summarize, American continues to compete in competitive markets and will refuse to accept defeat, despite competitor CEO Scott Kirby, a former American Airlines CEO who was pushed out almost 10 years ago. American will continue to punch back at Kirby’s claims, and it will continue to be interesting to watch.