MMM: American Airlines App and Web Engagement Trends in 2Q24

Key Takeaways:

• American Airlines announced the departure of its Chief Commercial Officer, Vasu Raja, and lowered its 2Q24 guidance, as it faces softness in bookings and a weaker domestic market, due, in part, to a more competitive domestic pricing environment

  • American Airlines’s download and MAU growth corroborate its struggles, down 3% and 2% YoY, respectively, in 1Q24, with the MAU growth rate falling even further in QTD 2Q24, per Sensor Tower data

• United saw 7% YoY growth in MAUs in 1Q24 and that positive trajectory is continuing in 2Q24. United’s paid and web browser downloads penetration rose 160bps YoY to 25% of total downloads, the highest in the cohort, while total paid and web browser downloads increased 20% YoY

  • United grew its 1Q24 ad spend by nearly 15% YoY, with a majority of its ad spend skewed to Facebook and Instagram, as well as LinkedIn

• While consumer engagement on US airline apps largely declined throughout 1Q24, time spent on the desktop site for some US carriers increased significantly, which may suggest longer travel planning sessions and potentially bookings. Per ST data, average US user time spent on Southwest, JetBlue, Delta and United on desktop increased 16%, 16%, 15% and 15% respectively, on a YoY basis in 1Q24

  • This was nearly double that of time spent growth on American Airlines (+7% YoY). Spirit and Alaska Air saw average time spent on their desktop sites remain relatively unchanged in 1Q24

  • Although consumer engagement with Spirit via desktop remained relatively flat on a YoY basis in 1Q24, that trend has reversed through the summer travel season in 2Q24. From Apr’24-May’24, Spirit led its peers in US desktop user time spent growth, up 9% YoY, compared to 6% for United, and <2% for American, Alaska Air, Delta, JetBlue and Southwest. Spirit’s cohort-leading growth in US user time spent on desktop through the first two months of 2Q24 may suggest that consumers are opting for more budget-friendly domestic trips this summer season

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