Inflight Wi-Fi is an area where JetBlue has been an industry leader, as the airline has been offering fast and free Wi-Fi for well over a decade. With Delta and United both making major progress when it comes to inflight connectivity, it seems like American is being left in the dust (again).
With that in mind, what could we see at American in the future? American’s CEO made some comments about this today, and it’s not great news…
In this post:
American has lost its edge with inflight Wi-Fi
Going back several years, American was the best of the “big three” airline when it came to inflight Wi-Fi. The airline had Viasat Wi-Fi on the most jets, meaning that passengers had access to fast Wi-Fi. Delta and United also charged for Wi-Fi, but had considerably worse systems for inflight connectivity.
This situation has now changed:
- Delta is in the process of rolling out free Wi-Fi throughout its fleet, made possible by the widespread installation of Viasat Wi-Fi
- United has announced that it’s introducing free Wi-Fi as of 2025, as it installs Starlink Wi-Fi
Currently Delta beats American, since it also has fast Wi-Fi, but it’s free. Meanwhile United will beat American once it has Starlink, but it’ll be years before that’s fully rolled out.
When it comes to American, the issue isn’t just that the airline charges for Wi-Fi, but it’a also how much the airline charges. For example, Alaska, Southwest, and United, all charge $8 per segment for Wi-Fi, while American’s pricing is all over the place, and sometimes costs $20+ per segment.
American doesn’t even offer free inflight messaging, aside from the T-Mobile partnership. That’s wild because:
- It’s something that even United offers at this point, with its inferior connectivity system
- American promised several years back that it would introduce free inflight messaging, but then backtracked
Given how the competitive landscape has changed, does American now plan on offering free Wi-Fi? During today’s Q3 2024 earnings call, American CEO Robert Isom was asked about this. His response was simply to suggest that American will keep investing in Wi-Fi, with no indication of Wi-Fi ever being made free. Instead, he highlighted how the airline is adding better Wi-Fi to regional jets, though of course that’s still a paid service.
American isn’t trying to compete with Delta & United anymore
Back in the day, the “big three” US carriers seemed to match one another on just about everything when it came to product innovations. That no longer seems to be the case.
Delta has long been viewed as the most “premium” US carrier, investing in the passenger experience. But what has changed in recent years is that United is now fully trying to get into Delta’s league, from introducing new cabin interiors, to rolling out free Wi-Fi.
American doesn’t seem interested in competing (with the exception of its loyalty program), as the airline has gone in the opposite direction. American has ripped swanky new interiors out of its cabins to remove TVs, and isn’t offering free Wi-Fi, despite having the bandwidth to do so.
In theory there could be merit to saying “we’re a more cost focused airline than Delta and United, so we don’t necessarily want to be like them.” But that strategy isn’t working. When you look at the financial performance of the three airlines, Delta and United are way more profitable than American, and there’s no sign of that changing.
American executives have repeatedly said that “the schedule is the product,” meaning that American hopes to capture customers based on the routes it flies, rather than the passenger experience it offers. American also has a pretty narrow definition of “schedule,” as that mainly appeals to those looking to travel domestically from Charlotte, Dallas, and Phoenix.
So I’m not meaning to go on too much of a tangent here, but I think this connects back to the Wi-Fi situation. Logically, you’d think that American would feel the pressure to compete with Delta and United when it comes to offering free Wi-Fi.
However, I’m not convinced that the current management team with the current strategy will follow the competition. I suspect the American C-Suite’s view on this is that the airline can’t directly point to where there would be a return on investment by offering free Wi-Fi, and therefore, nothing will change.
As of now, Isom’s official stance is that there are no plans to offer free Wi-Fi. Admittedly I suspect this is one of those things on which the airline will reverse course overnight, but that could be many years down the road.
So it’s not surprising that American doesn’t plan on rolling out free Wi-Fi. What is surprising, however, is that American’s Board continues to just sit there twiddling their thumbs while the airline continues to underperform, with no real strategy to improve things. Keep in mind that in 2023, American’s CEO was the second highest paid in the industry, and raked in $31.4 million, nearly double as much as United CEO Scott Kirby.
Bottom line
With Delta now offering free Wi-Fi on most flights, and United announcing plans to introduce free Starlink Wi-Fi, it seems like it’s American’s move to improve its Wi-Fi situation. American has high quality Wi-Fi, but the pricing is uncompetitive.
Unfortunately American’s CEO has stated that the company has no plans to introduce free Wi-Fi anytime soon. I can’t say I’m surprised, given the company’s current strategy. I really don’t know what’s going on in Fort Worth anymore…
How do you see the Wi-Fi situation playing out at American?
It’s kind of annoying that American doesn’t want to compete with the big 2 carriers in the US, but instead wants to compete with low cost carriers were there’s clearly no money
"American also has a pretty narrow definition of “schedule,” as that mainly appeals to those looking to travel domestically from Charlotte, Dallas, and Phoenix."
Don't think this is exactly fair. In large areas of the country AA simply does have the best and most convenient schedule. I live in Texas right now and in the last few years I've also lived in the Midwest and the intermountain west. Almost always, when I price out flights...
"American also has a pretty narrow definition of “schedule,” as that mainly appeals to those looking to travel domestically from Charlotte, Dallas, and Phoenix."
Don't think this is exactly fair. In large areas of the country AA simply does have the best and most convenient schedule. I live in Texas right now and in the last few years I've also lived in the Midwest and the intermountain west. Almost always, when I price out flights I find AA has multiple departures throughout the day with logical, fast connections through DFW. Meanwhile Delta wants me to fly out of my way to one of their middle of nowhere hubs like SLC or Minneapolis, adding hours to the trip and often charging $150 extra for the privilege. It might be different on the east coast, but in much of the heartland AA's schedule is distinctly stronger and captures a lot of business.
there are clearly cities from which any airline has better schedules. AA flies more flights than every other airline except WN.
But AA doesn't serve many more domestic cities in total than DL or UA.
AA does use a lot more RJs to offer more flights.
DL carries more domestic ASMs than AA or UA on their own metal - excluding regional carriers. DL has the largest domestic gauge of the big...
there are clearly cities from which any airline has better schedules. AA flies more flights than every other airline except WN.
But AA doesn't serve many more domestic cities in total than DL or UA.
AA does use a lot more RJs to offer more flights.
DL carries more domestic ASMs than AA or UA on their own metal - excluding regional carriers. DL has the largest domestic gauge of the big 3.
from the 3rd quarter, AA and DL carried virtually the same amount of domestic revenue - AA was only 0.3% larger - but DL generated a much higher profit and DL's domestic profit is always larger than AA or UA's. DL and AA both carry 10% more domestic revenue than UA.
from a consumer standpoint, AA might have a marginally higher ability to connect some small markets by using more small RJs than DL or UA but AA is far less profitable in doing so.
and for those that say "I'm just a consumer and don't care about the finances" - no airline can continue to do the same thing that doesn't generate industry comparable profits. AA can't continue to waste investor resources to operate a business model that is inferior to what other airlines can do. we are seeing that reality at WN and B6 and will see more of it as long as there are airlines that perform worse than their competitors.
AA: going for worst.
Good luck trying to cancel a monthly internet subscription on American Airlines. They don't make it easy and don't send monthly statements or reminders. One has email: [email protected]
I think Isom honestly does a good job of answering the question without mentioning free Wi-Fi. But this is why it's so backwards...AA DOES selectively invest in being premium...they are installing new competitive business class seats with doors, and their new Admirals Clubs are top notch. But then they also are ripping out TVs from narrowbody planes. I do somewhat commend him for saying American wants to show the door to premium customers.
Isom...
I think Isom honestly does a good job of answering the question without mentioning free Wi-Fi. But this is why it's so backwards...AA DOES selectively invest in being premium...they are installing new competitive business class seats with doors, and their new Admirals Clubs are top notch. But then they also are ripping out TVs from narrowbody planes. I do somewhat commend him for saying American wants to show the door to premium customers.
Isom isn't a product guy. He didn't even know what Jetblue Mint was, and even my non avgeek friends know what that is. He probably wasn't aware that his two competitors are introducing free Wi-Fi across the board until today.
AA decided to massively cut costs under Parker, following the US Airways merger. Parker literally had no vision for the airline, except to turn it into what it is today, so you can blame him for actually making these decisions. However, that was at a time when United wasn't as premium, and was almost in the same league as American. But times have changed, and now, Isom has no clue what he's doing, so he's simply sticking with what his predecessor did.
I do think American will eventually have to roll out free Wi-Fi because of business travelers. But at the same time, I also thought that Delta and United would force them to install seatback TVs once again, which isn't the case.
This actually makes perfect sense because AA is always striving to be the industry worst in every aspect
It's so backwards...
If AA literally just did a full revamp of its catering, both paid and premium cabin, and added free wifi, they'd add the perception of premium that SO many people would subconsciously appreciate.
It's baffling that they don't understand these kinds of things actually matter to people, and people WILL choose a worse route for a more premium product, and they WILL pay incrementally more for the illusion of premium.
The problem with AA is they have absorbed the culture of USAirways which was far from a premium service airline. Unfortunately being in PHL we are pretty much stuck with AA. When flying across the pond I will always opt for the BA or Lufthansa flights to avoid AA less than stellar "flagship" business...
I am also based in PHL so I am stuck with AA. I agree that the US Airways culture was adopted. They did everything they could to cut costs, including charging for water in 2008. When the merger with AA was announced, I was actually excited because AA was a more premium airline, but the US Airways management team came in and ruined everything. AA has also been all over the place with PHL. Back...
I am also based in PHL so I am stuck with AA. I agree that the US Airways culture was adopted. They did everything they could to cut costs, including charging for water in 2008. When the merger with AA was announced, I was actually excited because AA was a more premium airline, but the US Airways management team came in and ruined everything. AA has also been all over the place with PHL. Back in the US Airways days it was their primary international hub. Pre-covid AA wanted to really expand in PHL, then they formed the Jetblue partnership and deemphasized the hub, and now they are expanding there once again.
Neither does American offer Executive Platinum for Life, unlike its US competitors. After 30+ years of which 15+ as EP, the time has come to say Goodbye, not because of this ONLY, but for a multitude of reasons, big and small.
My recipe: Request a Status Challenge from Skyteam and Star Alliance (plenty are available, some valid as far as early 2026), fly on UA and DL, testing what works best for you in their...
Neither does American offer Executive Platinum for Life, unlike its US competitors. After 30+ years of which 15+ as EP, the time has come to say Goodbye, not because of this ONLY, but for a multitude of reasons, big and small.
My recipe: Request a Status Challenge from Skyteam and Star Alliance (plenty are available, some valid as far as early 2026), fly on UA and DL, testing what works best for you in their programs, then decide and make the permanent switch. For me, it is well under way.
As I have said before, I am so very happy that I do not need to spend a dime on American Airlines. They have no idea what they want to be when they grow up. Delta & United actually want the customer to have a pleasant experience onboard and on the ground, whether that cabin be J, Prem Y or Y. American simply doesn't care and has been in an amenity cutting program for decades.
AAs wifi is fast, you can easily stream YouTube videos. You can pay AA $50 a month for wifi. It's an annoyance, but not a big problem for people that fly AA regularly. Southwest also charges for internet, I dont see people upset with that.
T-Mobile
I$0m and company have earned a reputation for a reason. No one should be surprised.
Many may feel that "American doesn't seem interested in competing" because AA's management team, whether fair or not, has developed a reputation for cost cutting. Especially when it has a direct connection to the customer's onboard experience, like, IFE, meals, and Wi-Fi. Even "Project Oasis" found ways to make economy even less comfortable by squeezing in more seats while...
I$0m and company have earned a reputation for a reason. No one should be surprised.
Many may feel that "American doesn't seem interested in competing" because AA's management team, whether fair or not, has developed a reputation for cost cutting. Especially when it has a direct connection to the customer's onboard experience, like, IFE, meals, and Wi-Fi. Even "Project Oasis" found ways to make economy even less comfortable by squeezing in more seats while making the bathrooms in economy even smaller.
In a time where many believe the day of the ULCC and LCC is over, one has to wonder, if AA's culture of cutting every nickle and dime has cost them the dollars they need to survive. Time will tell.
While many passengers enjoy free WiFi, I’m not sure that making it free helps the company all that much. When Spirit rolled out WiFi it was incredibly cheap, now it’s often close to $20 for segment. This is simply because… people will pay it. I’m sure the same goes for AA. Would passengers enjoy free WiFi? Sure. Will they go out of their way to fly American because of it? Maybe some would, but I...
While many passengers enjoy free WiFi, I’m not sure that making it free helps the company all that much. When Spirit rolled out WiFi it was incredibly cheap, now it’s often close to $20 for segment. This is simply because… people will pay it. I’m sure the same goes for AA. Would passengers enjoy free WiFi? Sure. Will they go out of their way to fly American because of it? Maybe some would, but I can’t imagine ever choosing to fly Delta, United, JetBlue, etc. to not have to pay for WiFi. American knows they can capitalize on it. I think the company has bigger fish to fry when it comes to improvements.
Some might wonder why AA is only ranked 78 in the SKYTRAX 2024 world rankings.
Obviously many customers think that AA could improve their performance.
Others might disagree with any ranking organisation which does not place AA higher.
By not adopting industry wide norms like free WiFi is hardly going to improve consumer satisfaction.
American is most appealing to Luddites these days. They still haven't finished rolling out those wired pay phones in the aft alley yet. Bring your quarters, baby!
The problem with having an overpaid C-suite is that it takes away the incentive of innovation. They're just fat cats who are satisfied with the status quo and get no reason to change it. Some companies try to solve this with making part of their salaries flexible...
American is most appealing to Luddites these days. They still haven't finished rolling out those wired pay phones in the aft alley yet. Bring your quarters, baby!
The problem with having an overpaid C-suite is that it takes away the incentive of innovation. They're just fat cats who are satisfied with the status quo and get no reason to change it. Some companies try to solve this with making part of their salaries flexible (the bonuses and so), but I don't really see this happening correctly at AA.
AA's financial results showed significantly worse yield than DL, UA or WN in the 3rd quarter but higher load factors. AA is simply chasing low revenue volume to try to make up for the loss of high value customers.
And despite what AA thinks, its schedule is not an advantage. There are many fewer O&Ds where AA has an advantage than AA thinks. AA might have service from alot of places on the east...
AA's financial results showed significantly worse yield than DL, UA or WN in the 3rd quarter but higher load factors. AA is simply chasing low revenue volume to try to make up for the loss of high value customers.
And despite what AA thinks, its schedule is not an advantage. There are many fewer O&Ds where AA has an advantage than AA thinks. AA might have service from alot of places on the east coast to CLT and DFW which gives them more flights but DL clearly carries more domestic passenger revenue. UA Is relatively insignificant as a competitor in much of the SE which is why you consistently hear people talking about leaving AA for DL.
It's a lot harder to tell if people are connected to WiFi on a plane than if they are using the seatback AVOD but I would expect the take rate is pretty high on DL.
The world is simply in a connected mode right now and anyone that thinks that customers will choose a product that doesn't include WiFi when one is available that does is in denial.
Simply put, DELTA is the best airline in the world.
BEST in the world?? You drunk or something? What a moron!
"In the world" is a wild hyperbole.
TD, goodness knows what chemicals you had been consuming when you made the claim that “Delta is the best airline in the world”.
For your information Delta didn’t even make it into the top twenty of the world rankings.
Furthermore, one finds it difficult to believe that someone else found your false news statement ‘helpful’.
Straight out of the US Airways ‘do the bare minimum to survive’ playbook. It’s frustrating to watch.
"Delta is in the process of rolling out free Wi-Fi throughout its fleet, made possible by the widespread installation of Viasat Wi-Fi"
That's a little misleading as it's not free if you're not a SkyMiles member.
Free, in my opinion, means free for *all* passengers.
yes, it's free for ALL passengers.
If you are too lazy to fill out a template on the plane connected to their WiFi to get a lifetime of free airborne WiFi, you are the loser in more ways than the 2 minutes of time the process takes.
Non-story. AA offers free streaming entertainment over wifi. Anybody who actually needs internet access can expense it.
Poors kvetching about not having free wifi to surf the interwebs need to study the LSAT, get out of the basement, and get into a top firm like Paul, Weiss.
Do you have to be a douche to do that too?
Jeez, what an insufferable prick
If not for the T-Mobile free Wi-Fi, this would be a nail in the coffin. Abhor they removed IFEs from so many cabins as well. But definitely getting my miles worth on redemptions thanks to this site.
Just one of many reasons I went from Platinum to a nobody at AA. I matched status at DL and took all my flying to Delta...without even a "we wish you'd come back" from AA. Loyalty does not have to require velvet handcuffs...one only need to decide to make the break, and then follow through. DL is the far superior airline.
I'd rather they just give free wi-fi in first class.
On another note, my free wi-fi through T-mobile works great on AA.
Ben, you sound angry. After 90 minutes earnings call, this is the only takeaway?
@ guyo -- Sorry if I sound angry, I'm not. No, that's not my only takeaway, but I figured it was worth a post, since this is a specific point that very much impacts the passenger experience.
I don't sense any anger.
You do have to note, however, that Ben and Gary are both the most loyal to AA - and you have to wonder if they both have some deep-seated regrets that they live where they do - or at least that AA is the largest carrier in MIA.
Another outrageous point: I pay $50/mo for their wifi, but no free (or at least discounted) wifi on long hauls? Infuriating.
To be fair, “American doesn’t seem interested in competing” is a stretch, as they’ve kept their mileage program VERY competitive. I’d much rather have AAdvantage miles than skypesos and a 6” TV with no Bluetooth headphone connection that’s constantly interrupted by FA and pilot announcements.
@ Sel, D. -- You're absolutely right that the loyalty program is an area where American does continue to compete. However, it's the only area, really.
Management sees the airline has a cross between Spirit "plus" (specifically in the back) and DL/UA in the front long haul wise. American has had this "dual strategy" really since the merger when Parker took over and it doesn't seem to be changing anytime soon.
"Schedule is the product?" As in always delayed or cancelled flights? LOL
Still waiting on the schedule to deliver. 15 hours of delays on 26 AA flights this year, mostly MX and crew delays. Glad I have T-Mobile - the free Wi-Fi is one of the most valuable perks of my cell phone plan.
One has to ask …. with your experience of “26 AA flights this year”, why do you continue to suffer from what sounds like intolerable service?
For starters AA is the devil I know. I always have to check a bag because I travel with chef knives and I get two free bags as PLT so that’s a big help. They have enough service from my home airport (MCI) to where I need to go. DL and NK have one daily flight to LAX at frankly inconvenient times. WN also flies MCI-LAX but they’re usually 50% more expensive.
Being delayed is...
For starters AA is the devil I know. I always have to check a bag because I travel with chef knives and I get two free bags as PLT so that’s a big help. They have enough service from my home airport (MCI) to where I need to go. DL and NK have one daily flight to LAX at frankly inconvenient times. WN also flies MCI-LAX but they’re usually 50% more expensive.
Being delayed is just part of flying. It is what it is, and I allow extra time when I travel. I just wish AA saying “their product is their schedule” could deliver a bit more consistently. They always get me where I’m going safely and knock on wood they’ve yet to lose my bag. I can’t say the same for AS or DL.
That now makes sense to me, thank you for your input.
The world's largest regional airline continues to not impress.
One has to agree …. tried it, disappointed by it, would rather not use it in future.