American Airlines faces operational challenges amid reliability issues

Other major carriers also outperformed American in terms of cancellations. While DOT data shows that American experienced more extreme weather delays than others—though only slightly more than Delta—the primary cause of delays was late-arriving aircraft. These late arrivals have a cascading effect on operations.

Weather does not account for their high rate of lost baggage. The airline leads in mishandled bags both for June 2024 and the first six months of the year. In contrast, Southwest Airlines checks significantly more wheelchairs than American but still manages better performance regarding luggage handling.

Delta involuntarily denied boarding to only one passenger in the first half of the year compared to American Airlines' 6,832 cases—more than all other U.S. airlines combined.

American Airlines has aimed to improve reliability as a path to profitability. However, reliability alone is insufficient; it is a basic expectation rather than a competitive advantage. As a high-cost airline, they need to offer superior service to attract high-value passengers. Despite focusing primarily on reliability for years, they have yet to achieve it fully.

Consequently, their future prospects appear bleak enough that their stock has been removed from the S&P 500 index.