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American Airlines Loses World's Largest Airline Title to Delta and United

July 25, 2019
3 min read
American Delta United ZRH
American Airlines Loses World's Largest Airline Title to Delta and United
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American Airlines is no longer the world's largest airline, losing its title to both Delta Air Lines and United Airlines in the second quarter.

Why the split title? It all depends how "biggest" is measured. But, no matter the measure, it's no longer American — at least based on the numbers from the second quarter of 2019.

Atlanta-based Delta became the world's largest airline by revenue with $12.5 billion in operating revenues during the period. American reported $12 billion in operating revenues and United $11.4 billion in the second quarter.

Deutsche Bank analyst Michael Linenberg first noted what was then a potential change in ranking in a report earlier in July.

Chicago-based United became the world's largest by capacity flying 73.2 billion available seat miles (ASMs) in the quarter. American flew 72.3 billion ASMs and Delta 71.8 billion. ASMs are a standard industry measure of seat capacity.

American has held the title of world's largest airline since its merger with US Airways in 2013.

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The Fort Worth, Texas-based carrier's drop in the rankings come as it faces challenges on multiple fronts. The company has idled 24 Boeing 737 MAX 8 aircraft since the type was grounded in March, costing it at least $400 million in pre-tax income this year and prompting the cancellation of thousands of flights including the suspension of its Dallas/Fort Worth-Oakland route.

In addition, weather and an ongoing dispute with mechanics took an added toll on American's operation in the first half of the year.

American's capacity, measured by ASMs, shrank for the first time in seven years as a result of the operational challenges it faced in the second quarter.

Delta and United, meanwhile, have not sat idle as American has struggled. Delta has excelled at finding new ways to generate revenue, including being the first to introduce a no-frills basic economy fare, successfully increasing the number of paid upgrades to extra-legroom and first class seats on its flights, and expanding its non-core revenue streams — like its Delta TechOps maintenance business.

United is in the midst of a major domestic growth push. The airline began expanding at an accelerated rate above 4% annually last year in an effort to recapture what executives deem to be its "natural share" of the U.S. market. Growth has been concentrated on its mid-continent hubs in Chicago (ORD), Denver (DEN) and Houston (IAH), but hubs at Washington Dulles (IAD) and other airports have also seen new flights under United's expansion push.

American, for its part, sees its lagging performance as a temporary blip. Executives expect revenue growth to accelerate as operational issues pass and its network initiatives, including more flights at its Charlotte (CLT), Dallas/Fort Worth (DFW) and Washington Reagan National (DCA) hubs, take hold.

Capacity growth is also expected to return to normal levels once the 737 MAX returns to the skies, and Airbus A321neo delivery delays abate.

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants
TPG Editor‘s Rating
4 / 5
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Rewards Rate

4XEarn 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.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

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.