“I’m confident we’ll regain the standing in the agency and corporate channel,” Isom said.
American Airlines Seeks to Repair Travel Agency Ties After Direct Bookings Strategy
American reintroduced its fares to the channels where travel agencies want to book them, and Isom acknowledged their absence was their biggest “pain point.” The airline, too, will be feeling pain for some time.American Airlines CEO Robert Isom outlined numerous steps the airline is taking to “course correct” after abandoning a direct distribution strategy it embarked on in 2023.
The airline could take a $1.5 billion revenue hit this year because of the policy’s ongoing effects.
“I’ll just be frank,” Isom said in answer to an analyst’s question during the airline’s second quarter earnings call Thursday. “We overindexed on direct, and we’ve got to find a way to get — to play in the richer pool of indirect revenue. And that starts with having content, having relationships — positive relationships with travel management companies and agencies and then supporting our corporate customers in the ways that they feel valued.”sold in the U.S.”
Isom also said the airline is adding sales and support teams dedicated to dealing with corporate and agency customers.
“I’m confident we’ll regain the standing in the agency and corporate channel,” Isom said. “And that, combined with our direct distribution strength, will put us back on track to producing revenues that will meet and exceed our long-term financial targets.”
