American Airlines Improves New Baggage Handling by 29% in Q1 2025 but Still Ranks Worst in the US, Behind Delta and United

Published on April 22, 2025

In early 2025, American Airlines had made considerable strides in addressing one of its long-standing operational challenges. According to an internal memo that was shared by aviation expert JonNYC on social media, American Airlines reported a 29% year-over-year reduction in mishandled baggage during the first quarter of 2025. This improvement marked the airline’s most significant progress in baggage handling in recent years.

Despite this progress, American Airlines continued to lag behind its competitors in terms of baggage handling performance, maintaining its position at the bottom of the major U.S. airlines’ rankings. The Department of Transportation (DOT) statistics from December 2024 showed that American Airlines mishandled 0.83 bags for every 100 passengers who boarded. In contrast, its competitor, Delta Air Lines, recorded a much lower mishandling rate of 0.50 per 100 passengers, indicating a clear gap in performance.

Comparing American Airlines’ Performance to Its Competitors

While American Airlines did see an improvement in its baggage mishandling rate, it still trailed behind smaller carriers like JetBlue Airways and Alaska Airlines, which posted even better results. For instance, JetBlue’s mishandling rate stood at a significantly lower 0.41 bags per 100 passengers, while Alaska Airlines reported a rate of 0.51. These statistics emphasized the discrepancy between American’s baggage handling performance and that of its smaller competitors.

Even when comparing American Airlines to similarly large carriers, the airline was not performing as well. Delta, with its similar operational scale, was far more efficient, maintaining a mishandling rate of 0.50 per 100 passengers. American Airlines was closer in performance to United Airlines, whose mishandling rate was 0.79 per 100 passengers, still better but not by much compared to American’s rate of 0.83.

Larger Industry Context and Challenges Faced by American Airlines

The baggage mishandling issues American Airlines faced were just one aspect of its broader operational challenges. The airline also encountered significant hurdles in its handling of passengers with disabilities. In October 2024, the U.S. Department of Transportation imposed a record $50 million fine on American Airlines. This penalty was the result of violations related to the mishandling of wheelchairs and mobility aids, marking a serious gap in the airline’s service to passengers with disabilities.

The fine was the largest of its kind in aviation history, highlighting systemic issues in the airline’s handling of assistive devices. Even though American Airlines was credited with $25 million for investments already made to improve services for disabled passengers, its performance metrics in this area showed considerable room for improvement. In fact, in December 2024, American Airlines mishandled 1.48 wheelchairs per 100 passengers, far worse than Delta, which recorded a rate of just 0.67 wheelchairs per 100 passengers.

Subsidiaries’ Role in Baggage Mishandling

American Airlines’ regional subsidiaries also contributed to the airline’s overall baggage handling performance. Both Envoy Air and PSA Airlines, which are wholly owned by American, ranked poorly in baggage handling metrics. This further exacerbated the challenges faced by American Airlines in improving its overall service performance and baggage handling record.

Industry Comparisons and Global Travel Implications

When American Airlines’ performance was compared to that of other major carriers, it became evident that the airline faced challenges largely due to its operational scale. As one of the largest airlines globally, American Airlines had to manage a vast and complex network, making its baggage handling and operational efficiency more difficult to improve. However, Delta, with a similarly extensive network, consistently outperformed American in both baggage handling and its management of assistive devices.

United Airlines, another large carrier, faced challenges similar to American’s, with a mishandling rate of 0.79 bags per 100 passengers. This suggested that American’s struggles in baggage handling were not isolated, but reflected broader industry pressures affecting legacy carriers with expansive hub-and-spoke operations.

The gap in performance between American Airlines and smaller carriers like JetBlue and Alaska Airlines was much more significant. These smaller carriers had much lower mishandling rates—approximately half the rate of American Airlines—despite operating on a smaller scale. This demonstrated that superior baggage handling was achievable, even with fewer resources, and highlighted the potential for improvements within the current aviation environment.

Global Effects on Travelers

American Airlines’ struggles with baggage mishandling and other operational issues are indicative of broader trends in the aviation industry that could have far-reaching consequences for travelers around the world. The airline industry, globally interconnected, is expected to face increasing scrutiny as passengers demand more efficiency and transparency in service delivery.

For travelers, this ongoing issue with baggage handling could create additional challenges, particularly in the context of increasing air travel demand. While American Airlines has made progress in reducing mishandled baggage rates, its continued position at the bottom of the U.S. rankings raises concerns about the reliability of large carriers in handling passenger luggage, especially when compared to smaller, more nimble airlines.

International travelers, especially those flying with large carriers like American Airlines, may begin to place greater importance on baggage handling records when making flight decisions. Airlines’ performance in baggage handling could soon become a more significant factor in global travel trends, influencing not just passengers’ choice of airlines but also their broader travel experiences.

For airlines, the competitive landscape may shift as smaller carriers with superior baggage handling gain favor with travelers. Passengers may begin to increasingly favor airlines with proven track records in luggage handling and customer service, pushing larger carriers to invest more heavily in technology and logistics to improve performance.

Potential Industry-Wide Impact

The airline industry’s struggles with baggage handling could have several industry-wide implications. The shift towards better performance in handling mishandled baggage might require airlines to adopt new technologies, invest in more efficient baggage tracking systems, and provide better training for staff involved in the baggage handling process.

Additionally, larger carriers such as American Airlines and United Airlines might feel pressure to match the performance of smaller competitors like JetBlue and Alaska Airlines, leading to industry-wide improvements. The ripple effect of such changes would likely be felt by global travelers who demand better service and reliability from their carriers.

In conclusion, American Airlines’ improvement in baggage handling rates is a positive development, but the airline still faces significant challenges compared to its competitors. Its continued struggles in this area could impact its reputation and influence future travel decisions for passengers around the world. At the same time, the broader implications for the airline industry could drive operational improvements across the sector, ultimately benefiting travelers who prioritize service quality and reliability.