A look back at American Airlines’ wild 2024, from door jams to bankruptcy | Real Time Headlines

It’s been another eventful year for U.S. air travel. Just five days into this year, the door panel of an almost brand new car was blown off boeing company 737 Max, by Alaska AirlinesThe planes crawled out of Portland, Ore., after sunset, sending the plane maker back into crisis mode and delaying deliveries of new planes for months.

Two weeks later, a federal judge blocked JetBlue AirwaysThe planned acquisition of Spirit Airlines would leave the smaller, battered budget airline to fend for itself. The Struggling Spirit Finally Files for Chapter 11 Bankruptcy bankruptcy protection November.

The dramatic year also included an activist campaign by one of America’s most wary airlines, a tech meltdown that stranded hundreds of thousands of travelers during peak summer travel, and the most dramatic year since Barack Obama became president. America’s first major airline merger.

FAA Administrator Mike Whitaker announced that he would step down On January 20, the day President-elect Donald Trump was inaugurated, about a year into his five-year term, the key agency that oversees everything from aircraft certification to U.S. airspace lost its leader again. Airline CEOs have been calling for more air traffic controllers and investment in air traffic technology.

At the same time, airlines are fighting over who can be the most “premium” and most profitable, with cabins near the front of the plane becoming more popular with travelers (sorry to those looking to pay) Free upgrade). Top Two Contenders – Determined delta and challenger united — generates most of the industry’s profits and has its stock price at record highs, while smaller airlines favor higher-end seats and launch higher-end credit cards.

Airlines have been taking a timid approach until the industry cuts a glut of U.S. flights that has driven down fares. But the international tourism boom Entering the off-seasonand shows no signs of slowing down. Through it all, overall demand for air travel is breaking records and CEOs are optimistic about next year.

Here’s how they’ll fare in 2024:

America’s most profitable airline struggles to recover from July 19 crisis mass strike Power outage kills hundreds Microsoft The Windows machine is offline. Delta Air Lines lost more than $500 million, stranded thousands of passengers, and canceled the most flights in 2019.

Chief Executive Ed Bastian told CNBC last week that demand looks strong heading into 2025. Delta Air Lines lounges, exclusively for passengers traveling in the most premium cabins of the same name, opened this year in New York, Los Angeles and Boston, with more locations in the pipeline.

It’s a sign of Delta’s continued focus on high-end travelers and its “premium” brand, which like Spirit budget travelhas become such a punchline about high-end travel that “Saturday Night Live” sketch Last week, Martin Short played a Delta employee who blocked actor Paul Rudd from entering the coveted Delta Sky Club, saying his name “sounded bad.”

Delta Air Lines isn’t launching a streamlined business class offering at its November investor day as some analysts had expected, but the new lounge could ease crowding in Delta’s popular Sky Club.

Can it beat Delta? It’s unclear whether Magnolia Bakery banana pudding will be enough to get more travelers to buy first class, but United is making other big moves, such as expanding its network to include more premium leisure destinations Mongolia to Greenland to Northern Spain Next year will attract customers looking to get off the beaten path to traditional U.S. aviation destinations.

The airline’s performance this year has investors excited and it has set lofty goals for next year. Shares more than doubled in 2024, making it the best-performing airline.

United Airlines is introducing newly equipped narrow-body aircraft to its fleet with new interiors, seatback screens and Bluetooth connectivity. it declares a WiFi partner powered by Musk– owns SpaceX’s Starlink and, following Delta Air Lines and JetBlue Airways, the company won’t charge for the service.

Chief Executive Scott Kirby said earlier this year that the airline would not count on Boeing’s uncertified 737 Max 10 and would consider more Airbus planes as alternatives, but he backed the planemaker’s new chief executive. Kelly Ortberg.

Say goodbye to open seating. The Dallas-based airline shocked loyal and frustrated customers alike in July when it said it would begin operations. Assign seats and updated its livery cabins to add rows of cabins with extra legroom to boost revenue. It’s the biggest strategic change in the airline’s nearly half-century of flying.

While Southwest said it had been working on the changes for months, the airline announced them after activist hedge funds. Elliott Investment Management Holds about $2 billion in shares in the airline and has pushed for changes, including the ouster of Chief Executive Bob Jordan. Former CEO and ex-chairman Gary Kelly survived the race despite agreeing to retire. In a truce, Southwest appointed six new board members in October, including five nominated by Elliott.

American Airlines expelled it Business executiveIn May, Vasu Raja’s sales strategy of eliminating travel agents in favor of selling directly to business travelers backfired when the airline suddenly slashed sales guidance.

The company’s outlook has improved, with executives optimistic about demand through the end of the year and into 2025. credit card transactions with its partners Citibankand will end its relationship with its co-branding partner Barclays, a holdover from American Airlines’ 2013 merger with US Airways.

Comedians love to hate the budget airline, and problems have snowballed this year, starting with a federal judge block In January, Spirit Airlines was acquired by JetBlue Airways.

After the merger closes, Spirit faces other problems: a post-pandemic surge in labor and other costs, fierce competition in the domestic market, a surge in demand for travel to countries where the company doesn’t serve, such as Italy and Japan, and the Pratt & Whitney Air Lines The engine recall had a huge impact on Spirit, grounding dozens of aircraft.

As the refinancing deadline approaches and a large amount of capital is lost, Spirit files for Chapter 11 bankruptcy. bankruptcy protection Last month, it became the first major U.S. airline to do so since American Airlines in 2011. question border.

The airline has changed its long-standing business model of charging low fares and adding other fees such as seat selection to offer more bundled options during the summer.

While Spirit Airlines’ stock was delisted after it filed for bankruptcy, JetBlue Airways is moving forward after a judge blocked its takeover plan. Here are the highlights: cost cutting and return to profitability.

new Joanna Geraghty Former commercial executive Marty St. George, who returned to the airline as president in February, laid out the JetForward strategy aimed at refocusing the airline, which has grown post-pandemic with its high-end gear too many loss-making routes.

The airline announced earlier this month that it would update some of its aircraft Domestic business classto complement its aircraft with premium Mint business class cabins.

As of Tuesday’s close, the company’s stock price has risen more than 40% this year, ranking first S&P 500 Indexperformance. Investors were pleased with its latest revenue picture, with an update showing revenue was better than expected.

Months later, the company focused on its nearly $2 billion acquisition of troubled Hawaiian Airlines, a merger that passed antitrust regulators this summer and marked first merge Since Alaska Airlines acquired Virgin America in 2016, it has become one of the major airlines in the United States.

Alaska has made solid profits so far this year, with its stock price soaring more than 70%, nearly three times the premium to the broader market. Earlier this month, executives painted an ambitious picture for investors, announcing global expansion The combined airline will include nonstop service on wide-body aircraft to Europe and Asia from Seattle (its biggest competitor is Delta Air Lines).

A first-rate frontier? The airline has turned a profit again and is trying to move upscale, planning to equip its planes with Domestic first class seats.

It also plans to offer more packages that include seat assignments, baggage and no change fees.

Chief executive Barry Biffle said the airline expected to return to double-digit profit margins by mid-2025, attributing the recent improvement to a series of network changes, such as opening flights on Tuesdays, Wednesdays and Saturdays when demand is lower. Flights are reduced on days and in crowded places.

loyalty travelIt has struggled to get into the hotel business and this summer said it would conduct a strategic review of its Sanctuary resort in Florida. The company added this fall that it was approaching a capital partner for the property north of Fort Myers.

Main business, low cost Allegiant AirNew CEO Greg Anderson told investors this fall that a turning point had been reached and peak demand was high. The airline updated its fourth-quarter guidance in early December, which beat analysts’ expectations.

The airline’s profit margins are enviable, especially for a low-fare carrier, and it benefits from cargo contracts with: Amazon Deutsche Bank airlines analyst Mike Linenberg said this month that competitors were cutting capacity from its base in Minneapolis.

“sun countryDiversification of revenue provides the company with an economic moat, allowing the airline to remain profitable even in its most volatile and competitive quarter since the pandemic,” he wrote in a Dec. 11 note .

The airline has successfully adapted its flight schedule to the seasons, adding services to warmer destinations during the winter.

Disclosure: NBCUniversal is the parent company of CNBC and NBC, which airs “Saturday Night Live.”