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American Airlines is working to repair its relationships with corporate customers and distributors after a failed attempt to move bookings to direct channels. The airline's CEO, Robert Isom, discussed during an earnings call on January 23 that the company has made progress in recovering revenue from indirect sales channels in the fourth quarter of 2024. He stated that American Airlines is on track to fully restore its revenue share from these channels.
"As we exit this year, our indirect flown revenue share improvement was driven by sequential gains in corporate revenue share, which has been the primary focus of our recovery efforts," said Isom. Forward bookings remain strong for the first quarter of 2025, and new contracts have been completed with agency partners serving both corporate and leisure customers.
The strategy shift occurred after agreements were signed with Amadeus, Sabre, and Travelport in October 2022 for ticket sales through the New Distribution Capability (NDC). However, the strategy did not succeed as planned, leading to Vasu Raja's departure as chief commercial officer in June 2024.
