Losing access to online distribution platforms cost American Airlines more than $50 million in revenues

Despite airlines’ push to divert travellers towards buying tickets via their own websites, online travel agents still play a very important role. In 2011, American Airlines introduced its own booking system for travel agents, prompting a backlash from traditional distributors who blocked access to their platforms. Volodymyr Bilotkach, Nicholas Rupp and Vivek Pai take a close look at the case, finding that the loss of access cost American Airlines more than $50 million in revenue through reduced ticket sales. They write that such conflicts between airlines and traditional channels may become more common in the future, as airlines continue to try to unbundle their services.