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AA DFW Flagship Lounge Opening, Plus Everything We Learned from AA's Earnings Call

Oct. 25, 2018
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4 min read
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AA DFW Flagship Lounge Opening, Plus Everything We Learned from AA's Earnings Call
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With its stock down nearly 50% from its January 2018 high, American Airlines released its third-quarter earnings and held an investor call Thursday morning. Although operating income and net income both dropped by 48% from the same period in 2017, the airline did better than analysts expected.

In the presentation and subsequent Q&A session, AA management shared a variety of interesting updates. But, perhaps the most relevant to flyers is AA's announcement of when its Dallas/Fort Worth Flagship Lounge and Flagship First Dining will open: first quarter of 2019.

Or, maybe not. While AA management dropped the Q1 2019 announcement in its presentation, an airline spokesperson hedged the position in a follow-up statement:



We’re hopeful to open DFW D Flagship Lounge and Flagship First Dining towards the end of the first quarter, but please keep in mind that it is a construction project and delays may happen. I wouldn’t want to disappoint your readers by promising first quarter when it may be a little later.

Either way, this is much earlier than what was expected. When the DFW Terminal D Admirals Club lounge closed in April 2018, lounge employees shared that the project would take 18 months. Now it seems the airline will be able to open its Flagship Lounge in its most profitable hub (more about that later) just a year after starting the process.

This lounge will be fifth Flagship Lounge location to open, joining New York Kennedy (JFK), Miami (MIA), Chicago (ORD) and Los Angeles (LAX). It will also be the fourth Flagship First Dining location.

Some other things we learned from the call:

Flight Attendants: The flight attendant scheduling system merger was finished last quarter. This will allow FAs to change between legacy AA and legacy US Airways crew bases. And it should help AA operationally, making it quicker to recover from operational disruptions.

Premium Economy: American Airlines now has 92 widebody aircraft with premium economy installed. Management now says that the retrofits will be completed "by next summer." On average, AA has been able to charge "double the coach fare" for premium economy, although it didn't clarify if this was double the Basic Economy or Main Cabin fare.

New aircraft: American Airlines has taken delivery of 600 aircraft since the AA-US Airways merger. In total, CEO Doug Parker notes that it has invested $25 billion in aircraft in the past few years. It expects to slow down aircraft acquisition growth over the next few years — that is, after it finishes taking delivery of another 47 Boeing 787 Dreamliners. So, you likely won't see a large aircraft order by AA anytime soon.

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Most Profitable Hub: It might not be surprising to hear, but AA management confirmed that Dallas/Fort Worth was its most profitable hub. It's working on adding 15 new gates at DFW. The airline is also working on adding 7 new gates at Charlotte (CLT) that'll let it add 75 more daily flights.

Joint Ventures: AA executives confirmed again on the call that they expect the Qantas Joint Venture and transatlantic partnership to be renewed. CEO Doug Parker told us as much just last week.

Basic Economy: Management claims that adding free carry-on bags to Basic Economy fares hasn't hurt the percentage of travelers that buy up from Basic Economy to Main Cabin. And, this change has allowed AA to expand Basic Economy into more markets, presumably where it competes head to head with Delta and wasn't competitive with the no-carry-on policy.

Corporate buyouts: More than 100 executives took the retirement package offered earlier this year. AA executives admitted that this was more than they expected. No layoffs of front-line employees are expected.

Alipay in China: American Airlines is (finally) accepting the widely-used Alipay payment service as a payment option in China.

Management pushing stock price: AA management aggressively sold investors on the airline's stock in the earnings call. Quotes from management about the stock included "extremely bullish," "extremely optimistic," "buying opportunity" and they "would be aggressive buyers at these levels." From January through Thursday morning, AA's stock has lost nearly 50% of its value, but it's currently up more than 7% on Thursday.

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  • Intro Offer

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  • Annual Fee

    $325

  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.