American Airlines Group, Inc.: A Return to Profitability Amid a Pandemic

Author
Amsdell, A.; Kulkarni, N.; O’Rourke, J. S. (editor)
Region
North America
Topic
Strategy & General Management
Accounting & Finance
Length
13 pages
Keywords
American Airlines
Profitability
pandemic
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

The Coronavirus / COVID-19 crisis of 2020 resulted government restrictions on travel, accompanied by a public loss of confidence in the safety of air transport, all of which led quickly to a decline in revenue for airline companies. American Airlines has implemented a number of important changes, but their survival in an unstable environment and unpredictable consumer market depends on whether these changes are sufficient to ensure safe travel and encourage the flying public to take to the air again.

Learning Outcomes
  1. To highlight the drastic impact that large and unexpected “black swan” events can have on a for-profit business.
  2. To provide an authentic example of a situation in which profit and ethically responsible behavior can come into conflict.
  3. To encourage discussion around the type of crisis management communication plans companies should prepared, exercise, and update.
  4. To encourage analysis of how to measure success as a company responds to an existential crisis.