American Airlines punches back in Chicago, in 'fourth inning' of O'Hare rebuild
Chicago has long been competitive turf for airlines, but with some pretty well-defined roles.
United Airlines is the clear leader at O'Hare International Airport (ORD), its home base. American Airlines is a distant second, with its own O'Hare hub operation. And some 30 miles down the road, Southwest Airlines operates a major base at smaller Midway International Airport (MDW).
But just like in any competitive environment, things — every once in a while — get a bit ... shall we say, testy.
Earlier this month, TPG's Zach Griff reported on some new O'Hare signage and digital advertising from United that not-so-subtly singled out its competitors.
United's new signs point to its O'Hare terminal as the home to "Chicago's #1 airline," with a separate arrow toward the airport's other terminals denoting "the rest."
The Chicago-based airline contrasted its flights, destinations and lounges (along with other product offerings) with those of its top Windy City competitors.
There's more than just an advertising campaign at play, though.
American seeks big growth at ORD
American is in growth mode in Chicago this year.
According to data from aviation analytics firm Cirium, this summer, the total number of seats from O'Hare will be up 21% over last June, July and August. That includes the new nonstop transatlantic service to Naples, Italy launching next week, and a host of new routes from the airport the carrier just unveiled on Thursday.
And after United's recent touting of its own hometown airport growth — fresh off of winning access to more O'Hare gates, to American's chagrin — executives at the Fort Worth, Texas-based carrier fired back last week.
"If United is gaining [market] share in Chicago, they're gaining it from somebody other than us," Steve Johnson, American's vice chair and chief strategy officer, said on the company's first-quarter earnings call.
Ever since the COVID-19 pandemic, American has placed major emphasis on its self-described "Sun Belt" hubs. In 2024, the carrier flew 12% more seats out of Dallas Fort Worth International Airport (DFW) than it did in 2019, per Cirium. Its seats out of Miami International Airport (MIA) were up nearly 15%, while seats out of Charlotte Douglas International Airport (CLT) were up close to 16%.
Related: Whoa: American announces free Wi-Fi coming next year
The carrier also grew considerably, versus five years prior, at New York City's John F. Kennedy International Airport (JFK) and Ronald Reagan Washington National Airport (DCA) outside of Washington, D.C.
But American's total seats out of O'Hare in 2024 lagged 2019 levels by some 21%.
This year, that's changing. The carrier is building back at O'Hare, with plans to offer a combination of new domestic and international routes, plus additional daily flights on existing routes out of its Midwest hub.
Johnson, speaking to analysts April 24, dismissed any thoughts about whether the carrier still sees Chicago as a critical piece of its operation.
"It's a really key part of our network," he said. "It's how we take care of, and connect to, and provide service to, our customers in the Upper Midwest and the Great Lakes region. It's how we connect passengers across the northern tier of the United States."
'Fourth inning' of rebuild
Still slightly trailing the number of seats it offered in 2019, though, American isn't done with its growth at O'Hare either.
Asked to make a baseball analogy (fitting for a town known, in part, for its passion for America's pastime), Johnson estimated that American is in "maybe the fourth inning" of its rebuild in the Windy City. That's out of nine innings, for those who don't fancy a Friday afternoon at Wrigley Field.
Travel demand on American was simply slower to rebound in the wake of the pandemic in Chicago, Johnson said, than it was in some of its other key markets where the carrier ultimately chose to focus its attention in recent years (such as its DFW home base and its MIA and CLT fortress hubs).
"But now we're focused on rebuilding the position that we've traditionally had in Chicago," Johnson said, while acknowledging a reality. "We understand that we'll probably always be second-place in Chicago."
United remains the top dog at O'Hare
United, for its part, is set to grow its own O'Hare footprint this summer, with 10% more seats than a year ago, per Cirium.
But it'll offer nearly 23% more seats than American between June and August.
The carrier also just reopened its improved and expanded Polaris Lounge inside O'Hare's Terminal 1.
Which American hub could be next for growth?
Besides Chicago, American had three additional hubs at which it flew fewer seats in 2024 than it did in 2019, per Cirium. Among them: Los Angeles International Airport (LAX), Philadelphia International Airport (PHL) and New York's LaGuardia Airport (LGA).
That said, Johnson noted that the carrier's combined operation in New York City (between JFK and LGA) this summer will be its biggest ever.
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