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Delta's July meltdown overshadowed by worse performance from American Airlines

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Delta's July meltdown overshadowed by worse performance from American Airlines
Research
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View from the Wing | View from the Wing

Even with Delta’s CrowdStrike meltdown in July, it still had better on-time arrivals performance for the month than American Airlines. The latter was significantly impacted by weather, but the results remain notable.

According to data from airline analytics firm Cirium, Alaska Airlines was the most on-time for July, followed by United. Delta, typically a leader in this category, came in third due to their operational issues following the CrowdStrike outage. JetBlue and Southwest ranked next.

Among U.S. airlines, American outperformed only Frontier and Spirit. "When you’re behind JetBlue something went wrong with your operation," an industry analyst commented. While American attributes its struggles primarily to weather-related disruptions, this has been a recurring explanation. If their hubs are more susceptible to adverse weather during peak travel times in summer, it is a significant factor worth noting.

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American’s completion factor lagged behind Southwest’s and Alaska’s and was even lower than Spirit's; however, they did not cancel flights as frequently as Delta or United in July—a consequence of the CrowdStrike incident.

At the start of summer, it was noted that if passengers were experiencing delays, cancellations, diversions—or if their bags were lost or they were denied boarding despite having tickets—it was likely happening on American Airlines according to Department of Transportation reports.

For an airline whose CEO prioritizes operational reliability, American has not consistently met these standards. This focus on operational basics has come at the expense of customer experience details. Industry observers suggest that improving the airline hinges on leadership attention to detail and execution beyond merely ensuring timely arrivals.

While American has promoted improvements in their operations quality, specifics have been lacking. Some believe that when American performs well it is due to luck; conversely, poor performance is attributed to bad luck. The airline anticipates financial losses in the third quarter of 2024—encompassing late summer—which raises concerns about winter performance.

To improve financially and operationally amidst rising labor costs for flight attendants (pending ratification of a tentative agreement), American needs higher revenue streams. This necessitates selling their product at higher prices and enhancing overall customer experience beyond basic transportation services.

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