American Airlines, currently the world’s largest airline, earned a record $7.6 billion in 2015, though adjusted profit was $6.3 billion. Both numbers are records in the airline industry and well beat Wall Street’s predictions. For the cherry on top, AA’s CEO Doug Parker noted that these numbers mark more than any airline has earned…ever.
This is all well and good for the airline, but how did passengers fare in 2015? According to the report, passengers flew 3.8 percent more miles in the fourth quarter of 2015 than a year earlier and managed to pay 8.9 percent less per mile. Decreased oil prices have brought more than just cheap gas prices at the pump for road trippers; American saved $1.1 billion on jet fuel in 2015 and plans to save nearly $2 billion in 2016. Although airlines aren’t always passing that savings on via more affordable airfares, they are leveraging profits to re-introduce the niceties that disappeared several years ago when oil prices continued an upward swing. That means…
Snacks are back!
The airline followed their multi-billion-dollar record profit announcement with the big news that they intend to “elevate the customer experience” with free snacks in economy and re-designed amenity kits in premium classes. Beginning in February, American will introduce complimentary packs of pretzels or Biscoff cookies in economy on select transcontinental flights, expanding to an “assortment of snacks” on all domestic routes by April. Come May, those in economy for the lengthy flight from Dallas to Hawaii will enjoy a full onboard meal, which is far better than the basic beverage service they receive now. This mirrors United’s similar snack news in December, though their nibbles of choice are stroopwafel cookies and snack mix.
And beyond the food, AA is doubling down on its in-flight entertainment, making 40 movies, 60 TV shows, and 300 music albums part of the free offerings on domestic flights while adding four channels of satellite TV to select long-haul routes, making American the first U.S. airline to offer complimentary, international live TV.