American Airlines Is Still Figuring Out How To Play the Postpandemic Airline Game

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. Margins rose to 15.1% in 2015, and American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American to improve operating costs in the coming years, but we don’t expect it to structurally improve its position among airlines.