Since its creation in 1934, American Airlines has developed into the world’s second largest airline in passenger miles. It is a subsidiary of the AMR Corporation and has its headquarters in Ft. Worth, Texas. American operates an extensive network of travel throughout North and South America, Europe, Asia, and the Caribbean. After years of losses following the devastation of the 2001 terrorist attacks, American Airlines finally announced net earnings of $231 million in 2006. This came after a net loss of $857 million in 2005, and larger losses in the four years prior to that time. Fortunately for the airline industry, it is forecasted that volume will reach 2.4 billion passengers in 2012, a 13.7% increase since 2007. The U.S. air freight market is projected to see similar growth up to 2012. This is a promising for American Airlines, one of the largest scheduled air freight carriers in the world.
A possible obstacle to American Airlines’ future growth is