This IMO is a serious flaw with AA. They continue to fight multiple turf wars against numerous airlines rather than retreating to their strengths in tough times.
The current AA/NW fare war..this has been on and off for years.
raising the stakes in ORD with multiple flights in business markets vs UA.
UA had to match. Now everyone loses money.
Pissing of DL by build up of RDU and entering Shuttle Markets with RJ's
DL returns favor by adding DFW RJ's to ORD, MCI, MEF, etc. DL after all
has RJ's to burn. Why pick a fight with the largest RJ operator?
Almost crazy incentive programs to help keep CO and DL out of Latin America.
It works to keep the big players in line, but at a huge loss of revenue to AA.
Then the fight against JB. Setting up service in LGB
Trying to grow California/NYC/BOS/MIA at the same time.
Took on WN for a length of time out of LUV.
Had to one up UA by offering MRTC rather than just matching product.
IMO AA is coming to the realization that they might need to retreat in some markets/regions. Pick it's battles more wisely.