American Airlines is one of the largest airlines in the world, but it's not without competition. In this blog post, we will take a look at American Airlines' main competitors and how they compare. We will also discuss how American Airlines competes with these airlines and what strategies they use.
Which companies are American Airlines competitors?
American Airlines is one of the largest commercial flight companies in the world. They are a strong company with decades of operating experience. Although they are a dominant airline, they have competitors. The two main competitors we will be comparing in-depth with American Airlines are:
- Delta Airlines
- United Airlines
American Airlines (Ticker: AAL)
This airline is headquartered in Fort Worth, Texas, and was founded in 1930. It is a popular choice for travelers because it offers a wide variety of destinations, both domestic and international. American Airlines has over six hundred aircraft and flies to 350 different locations. American Airlines had a market capitalization of ~$11B
American Airlines has a very strong branding strategy. They are known for their red, white, and blue colors and their eagle logo. They also have a very recognizable slogan:
"Doing what we do best."
This slogan is meant to reflect the company's commitment to its customers and employees. It’s clear that they are marketing themselves as a patriotic American airline with the planes' red and blue striped wings.
American Airlines' brand is about more than just their logo and slogan, it’s an identity that a percentage of fliers can identify with.
American Airlines' customer service only received a 3/10 from airlinequality.
When it comes to pricing, American Airlines is often very competitive. They frequently offer sales and discounts, especially when compared to their competitors.
American Airlines employs over 130,000 people worldwide. This is a large employee size that helps the company maintain its many operations.
Delta Airlines (Ticker: DAL)
Delta Airlines is American Airlines' biggest competitor. They are both large airlines with a global presence. Delta Airlines has a strong domestic network in the United States, while American Airlines has a strong international network. In terms of fleet size and passenger numbers, Delta Airlines is the largest airline in the world (2019).
Delta Airlines has a market capitalization of ~$26.5B
Delta Airlines has a very strong brand strategy as well. They are known for their red and blue colors and "Delta" logo. They also have a very recognizable slogan:
"The World's Most Trusted Airline."
This slogan is meant to reflect the company's commitment to reliability. Recently Delta Airlines has partnered with Peloton to include content that is designed to help ease passengers into a comfortable sleep or relax nervous flyers. This shows how Delta's brand is flying ahead when it comes to the in-flight experience.
With reviews like…
- "absolutely miserable"
- "I will never fly with them again"
- "absolutely not concerned about us"
It should be noted that this is an area where they can work on. Delta received a 4/10 review on airlinequality.com.
Delta Airlines is typically very competitive when it comes to pricing. They often have sales and promotions that allow customers to save money on their flights. Delta Airlines also offers a variety of fare types so that customers can choose the option that best suits their needs.
Delta Airlines employs over 86,000 people worldwide. This allows them to ensure that their flights are on time and manage operations throughout its business model.
Delta vs American Airlines
Both airlines are major carriers with a large number of flights and destinations. They also compete in the same markets, so it's often a battle for passengers.
Delta has several advantages over American Airlines.
First, Delta offers more legroom than American Airlines on most of its planes. This can be important to passengers who want more space to stretch out. Second, Delta offers a wider variety of entertainment options, including live TV streaming and movies.
American Airlines' competitive advantage over Delta
American Airlines allows customers to select their seats before flying, Delta does not. It competes with other airlines by offering lower prices and better customer service. For example, American Airlines often has cheaper fares than its competitors, and that is to some extent a competitive advantage.
It also offers a variety of customer service features, such as free Wi-Fi and complimentary snacks and drinks. Comparing American Airlines and Delta Airlines, it is clear that they are both large airlines with a lot to offer their customers in terms of flight experience. They both are committed to similar goals and both can improve upon their customer service.
However, Delta Airlines has some advantages over American Airlines, such as more legroom and a wider variety of entertainment options. In the end, it is up to the customer to decide which airline is best for them. As a company, they both compete closely. An individual may have a better experience on any given day depending on the specific employees working that day.
United Airlines (Ticker: UAL)
United Airlines is another major competitor for American Airlines. It has the second-largest fleet in the world and operates mainly from hubs in Chicago. International flight is one of their biggest markets, but their daily flights on average are as much as 5,400 daily flights to over 325 locations in more than 50 countries.
United Airlines has a market capitalization of ~$14B
American Airlines compares to United Airlines in the sense that they are both large-scale airlines. United has a strong presence in domestic and international markets, while American Airlines dominates 19.3% of the domestic market leaving United with only 12.4%. In terms of fleet size, United Airlines is the second-largest airline in the world while American Airlines is the largest.
United Airlines has a very strong brand strategy as well. They are known for their red and blue colors, as well as their "United" logo. United Airlines also has a very recognizable slogan:
"Fly the Friendly Skies."
This slogan is meant to reflect the company's commitment to safety and customer service. Many flyers may experience anxiety from flying and they are branding themselves as a collective team where no one needs to feel alone while flying.
Based on customer reviews, United Airlines can work on its customer service with low ratings from consumeraffairs.com at 1.6 stars. They do, however, have a better score of 4 stars on Influenster.
When it comes to pricing, United Airlines has competitive pricing but it is not the cheapest.
United Airlines employs over 96,000 people worldwide.
American Airlines vs United Airlines
Comparing American Airlines and United Airlines, it is clear that they are both large airlines with a lot to offer their customers. They both have strong brand strategies but lack customer service and are competitive in pricing. In terms of employee numbers, American Airlines is slightly ahead of United Airlines. American Airlines has a lower market cap.
American Airlines' competitive advantage over United Airlines
However, the American Airlines Advantage program is more comprehensive and offers more benefits than United's MileagePlus program. Overall, both airlines are doing well and are competing strongly against each other.
Other US competitors
Although the mentioned companies are the largest American Airlines competitors there are other companies in this sector that also have a great market presence. For a number of reasons, their business models are not directly competing with American Airlines. Despite that investors should be aware of them.
European American Airline competitors
American Airlines also competes with several European airlines. These airlines are typically much smaller than United Airlines and Delta Airlines, but they offer unique services that appeal to certain passengers. For example, Ryanair (Ticker: RYAAY) is a low-cost carrier that offers extremely low fares. This is a major competitor for American Airlines, as they offer competitive prices without sacrificing on service.
Another European airline that competes with American Airlines is British Airways (Ticker BA). They are one of the oldest airlines in the world and have a strong presence in Europe and North America. Their first-class service is highly sought after, and they offer competitive prices for business class travel. In conclusion, American Airlines has several competitors, both domestic and international.
They compete on price, service, and loyalty programs. American Airlines is the largest airline in the world (2019). Their large fleet helps them stay competitive by having more flights available for passengers
Conclusion on American Airlines competitors
So how does American Airlines compete with these airlines? Well, they have several strategies. Firstly, they offer a large network that covers most of the world. This gives passengers plenty of options when booking flights.
Secondly, they have a strong brand that is recognized around the globe. This helps to attract customers and build loyalty.
Finally, they offer competitive fares and frequent flier programs. By using these strategies, American Airlines has been able to remain one of the top airlines in the world.
Which airline stock to invest in?
If you are looking to invest in an airline stock, American Airlines or United Airlines would be a good choice. Both stocks have been hit hard after the 2019 world crisis but show signs of recovery.
With a strong brand name behind both these companies, you may be able to own a share in the company at a lowered share price. It is important to do your research before investing in any stock. This should not be taken as investment advice. You must be responsible for your own financial decisions. Many factors can affect the price of a stock, so make sure you are aware of all the risks involved.