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Top 10 American Airlines Competitors & Alternatives

American Airlines is an airline company founded in 1926 after the merger of over eighty airlines. The company is based in Fort Worth, Texas, and flies to more than 350 destinations in around 50 countries globally.

American Airlines operates via its mainline fleet and wholly owned regional carriers, including Envoy Aviation, PSA Airlines, and Piedmont Airlines. The airline has over 800 planes and completes more than 6,000 flights daily.

In 2021, American Airlines had around 133,000 employees and reported a 72.36% increase in revenue to $29.88 billion. [1]

American Airlines is the largest US airline based on fleet size, passengers, workforce, and revenue per passenger mile. In 2021, the airline transported over 165 million passengers, more than any other US carrier. But total capacity in 2021 remained 24.7% lower than 215 passengers ferried in 2019.

The company is the founding member of the OneWorld Alliance and targets the upper-middle class and business travelers. Frequent flyers are enticed by its AAdvantage loyalty program that offers five mileage credits for every dollar spent. The airline has to fend off strong competitors, such as Delta Air Lines, Southwest, Lufthansa, United Airlines, IAG, and JetBlue. [2]

Here is an in-depth analysis of American Airlines’ top ten competitors and alternatives:

1. Delta Air Lines

Year founded: 1925
Headquarter: Atlanta, Georgia

Delta Air Lines is one of the world’s largest airlines, with around 750 planes. The airline schedules more than 5400 flights daily to over 325 locations across six continents. In 2021, Delta had about 86,000 employees and generated $26.7 billion in revenue. 

Both Delta and American Airlines offer budget-friendly flights with Wi-Fi. Delta is the founding member of SkyTeam, while American Airlines is a co-founder of the OneWorld Alliance.

In Apr 2022, Delta declared it would pay flight attendants for boarding after more than 160,000 people signed a petition. Flight attendants were only paid for the time between when the plane’s door is shut before takeoff and opened at the final destination. Delta’s decision shows that it cares about its employees, increasing customer loyalty. Delta Air Lines is the top competitor for American Airlines. [3]

2. Southwest Airlines

Year founded: 1967
Headquarter: Dallas, Texas

Southwest Airlines is the world’s largest low-cost carrier. The airline operates 718 Boeing 737s and flies to 121 destinations across the US and Central America from 107 airports in 40 states. In 2021, Southwest Airlines had around 60,000 employees and made $9 billion in revenue.

Southwest and American Airlines cater to the upper-middle class and frequent business travelers. Both airlines recorded a significant decline in revenue after the health crisis. Southwest transported 162.7 million passengers in 2019 versus 67.8 million in 2020, reducing its sales by more than half. The airline uses only Boeing 737s, minimizing maintenance costs.

In 2022, Southwest plans to hire 8,000 employees to address staffing shortages. Southwest is one of the top alternatives to American Airlines for domestic flights. [4]

Image credit Miguel Ángel Sanz on Unsplash

3. The Lufthansa Group

Year founded: 1953
Headquarter: Cologne, Germany

The Lufthansa Group is a union of European airlines, including Lufthansa Airlines, SWISS, Eurowings, Austrian Airlines, and Lufthansa Cargo. The group has 713 aircraft, with more than 300 planes under Lufthansa German Airlines. In 2021, Lufthansa had around 105,300 employees in over 70 countries and generated $19.1 billion in revenue. [5]

Eurowings carries 7.2 million passengers annually, making it the eleventh leading low-cost carrier globally. But the main competitor for American Airlines in this group is Lufthansa Airlines.

Both operate in the international market. Lufthansa flies to over 220 destinations, but it has a smaller fleet than its rival. Lufthansa is one of the top competitors for American Airlines.

Image credit Kevin Hackert on Unsplash

4. United Airlines Holdings

Year founded: 1926
Headquarter: Chicago, Illinois

United Airlines is a premier airline that caters to the upper-middle class and frequent business travelers. In 2021, United had around 93,000 employees and reported a 60.43% increase in revenue to $24.6 billion. The airline cut its losses from $7.1 billion in 2020 to $1.964 billion in 2021.

Both United and American Airlines have around 800 planes. But United ordered 270 new aircraft from Boeing and Airbus to build its new category, “United Next.” The airline plans to retrofit 100% of its mainline narrowbody fleet with premium seats, larger overhead bins, seatback entertainment, and faster Wi-Fi.

In 2021, United added 14 new airports to its network, including JFK, NY; Accra, Ghana; Lagos, Nigeria; Bridgetown, Barbados; and Johannesburg, South Africa. United Airlines is one of the best alternatives to American Airlines for domestic and international travel. [6]

Image credit Chris Leipelt on Unsplash

5. Air France-KLM

Year founded: 2004
Headquarter: Tremblay, France

Air France-KLM is a Franco-Dutch airline founded after Air France and KLM merged. It is the second-largest airline in Europe after the Lufthansa Group. In 2021, Air France-KLM had around 86,000 employees and generated $14.3 billion in revenue. [7]

Air France-KLM has over 550 planes and flies to more than 300 destinations in about 110 countries globally.

In 2021, the French-Dutch Group was the world’s sixth-largest airline based on sales. The airline took out an $11.6 billion bailout in 2020 after its turnover fell by almost 60%. Air France-KLM is one of the best alternatives to American Airlines for international travelers.

Image credit b1-foto from Pixabay

6. JetBlue Airways

Year founded: 2000
Headquarter: Long Island, New York

JetBlue Airways offers low-cost flights across North, Central, and South America and the Caribbean. It is the seventh-largest airline in North America, with more than 1000 flights daily. In 2021, JetBlue had around 22,000 employees and made $6.037 billion in revenues. [8]

Both JetBlue and American Airlines are part of the Northeast Alliance with American (NEA). This union was implemented in Feb 2021, allowing the two largest competitors across NY and Boston to collaborate and grow together.

In Sep 2021, JetBlue was named the No. 1 domestic airline in the Travel + Leisure World’s Best Awards. This award recognizes JetBlue’s high-quality in-flight service, in-cabin comfort, and value. JetBlue is a formidable Southwest competitor. [9]

Image credit Lukas Souza on Unsplash

7. Alaska Airlines

Year founded: 1932
Headquarter: SeaTac, Washington

Alaska Airlines is the fifth largest airline in the US. The airline flies to about 20 destinations across Alaska. In 2021, Alaska Airlines reported a 73.19% increase in revenue to $6.18 billion, from $3.6 billion in 2020.

Alaska Airlines is renowned for providing high-quality customer service. In Nov 2021, the airline added Belize City to its network. Its West Coast hubs will serve Belize and other destinations in three Central American countries. Alaska Airlines is the best alternative to American Airlines for regional travelers. [10]

Image credit Miguel Ángel Sanz on Unsplash

8. International Airlines Group (IAG)

Year founded: 2011
Headquarter: London, UK

IAG is a multinational airline company founded through a merger of British Airways and Iberia. The airline operates 570 planes and flies to around 279 destinations globally. In 2021, IAG had about 64,000 employees and generated €8.4 billion in revenue. British Airways made €4.3 billion. [11]

IAG competes against American Airlines in the international market. Before 2020, IAG ferried over 100 million passengers annually. But the number declined throughout 2020 and 2021.

As a merger of British Airways and Iberia, IAG has enough resources to challenge American Airlines. IAG is one of the top alternatives to American Airlines for international flights.

9. Spirit Airlines

Year founded: 1983
Headquarter: Miramar, Florida

Spirit Airlines is a low-cost carrier that flies to over 60 destinations in the US, the Caribbean, and Latin America. The airline completes 500 flights daily, less than a tenth of American Airlines flights. In 2021, Spirit had 10,287 employees and ended the year with $1.7 billion of unrestricted cash.

Spirit added five new A320neo aircraft in 2021, increasing its fleet to 173 planes. But the airline still has about 600 fewer planes than American Airlines.

In 2021, Spirit was named as one of FORTUNE’s Most Admired Companies and received Glassdoor’s OpenCompany designation. Spirit Airlines is one of the best alternatives to American Airlines for domestic flights. [12]

10. WestJet Airlines

Year founded: 1994
Headquarter: Calgary, Canada

WestJet Airlines is a low-cost Canadian airline. The airline flies to more than 100 destinations across North America. In 2021, WestJet had around 11,950 employees and generated $3.8 billion in revenue. 

WestJet was founded to offer Canadians a low-cost alternative to American airlines. The airline expanded its network to include the US, Mexico, and the Caribbean. With around 100 Boeing 737 planes, WestJet won’t catch up to American Airlines anytime soon. WestJet is the fastest-growing competitor for American Airlines. [13]

Image credit Justin Hu on Unsplash

 References & more information

  1. American Airlines, Inc. (2022, Jan 20). American Airlines Reports Fourth-Quarter and Full-Year 2021 Financial Results. Globe Newswire
  2. Hendry, J. E. (2022, Feb 23). American Airlines Is Only Flying 75% Of Its Pre-COVID Capacity. Simple Flying
  3. Matyszczyk, C. (2022, Apr 30). 160,000 people complained. Delta Air Lines did something about it. ZDNet
  4. Singh, R. (2021, Dec 8). Southwest Airlines expects to be profitable in the fourth quarter on stronger travel demand. Reuters
  5. Salas, E. B. (2022, Apr 12). Lufthansa AG – revenue 2004-2021. Statista
  6. Singh, J. (2022, Jan 19). United Airlines Records Nearly $2 Billion Net Loss For 2021. Simple Flying
  7. Burgueño, E. S. (2022, Apr 12). Air France-KLM: yearly revenues 2010 to 2021. Statista
  8. JetBlue (2022, Jan 27). JetBlue Announces Fourth Quarter 2021 Results. Yahoo Finance
  9. JetBlue Corporate (2021, Sep 8). JetBlue Named No. 1 Domestic Airline in the Travel + Leisure World’s Best Awards 2021. Business Wire
  10. Alaska Air (2021, Nov 19). Un-Belize-able! Alaska Airlines launches first flights to Belize City from SEA and LAX. Alaska Newsroom
  11. Salas, E. B. (2022, Apr 12). IAG Group’s revenue by airline 2011-2021. Statista
  12. Spirit Airlines, Inc. (2022, Feb 7). Spirit Airlines Reports Fourth Quarter and Full Year 2021 Results. PRNewswire
  13. Bodell, L. (2021, Nov 4). The History of WestJet. Simple Flying
  14. Featured image by Ross Sokolovski

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Ava Abbott

She is a data scientist and serial marketer, she brings a unique analytical perspective and extensive knowledge in marketing from her years of experience working for tech giants and starts ups.

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