American Airlines Struggles Despite Baggage Breakthrough

American Airlines has made notable progress in baggage handling this year. The airline reduced mishandled luggage by 29% in early 2025. However, despite this improvement, it continues to rank last among major U.S. airlines. Delta and United still outperform American Airlines, raising serious concerns about the airline’s overall efficiency.

American Airlines faces mounting pressure as passengers grow more frustrated with inconsistent service. Although its baggage mishandling rate has improved, it remains worse than Delta, United, JetBlue, and Alaska Airlines. Smaller airlines manage better results despite fewer resources. This gap shows that operational excellence doesn’t rely only on size or network scale.

The Department of Transportation revealed alarming performance figures at the end of 2024. American Airlines mishandled 0.83 bags per 100 passengers. In contrast, Delta’s rate stayed at 0.50. These numbers reflect a consistent pattern of underperformance from American Airlines across its core services.

Operational issues extend beyond baggage. American Airlines received a record fine in late 2024 for mishandling assistive devices. The DOT penalized the airline after reports showed it struggled to manage wheelchairs and mobility aids effectively. Disabled passengers continue to experience the consequences of this mismanagement.

American Airlines also suffers from issues within its subsidiaries. Regional branches such as Envoy and PSA contribute heavily to poor baggage performance. These internal challenges highlight deeper system-wide inefficiencies that require urgent attention.

Travelers now consider baggage reliability when choosing flights. American Airlines risks losing loyal passengers unless it fixes these service gaps. The aviation industry faces a turning point, as travelers demand more accountability and better performance. Meanwhile, smaller carriers continue to prove that scale doesn’t guarantee superior service.

As global travel picks up, airlines must compete on reliability, not just reach. American Airlines must invest in smarter logistics and stronger training. Without drastic change, it risks falling further behind its competitors.

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