American Airlines has slowly but surely seen its margins and market share erode in key business markets such as New York, Los Angeles and Chicago. As industry expert Brian Sumers put it best, American is “Sun Belt obsessed,” a decision that has come at the expense of its strategic position in key business markets.

Nowhere is this trend more evident than in the Northeast, where American Airlines, despite having four major hubs, is unable to achieve a dominant market position in all but one of them. The airline has large offices at John F. Kennedy International Airport (JFK) and LaGuardia Airport (LGA) in the New York City metropolitan area. At both airports, Delta Air Lines has succeeded in steadily pushing the Dallas-based airline down.

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At Reagan National (DCA), the airline remains the largest single player but cannot maintain a dominant local market share. As a result, Philadelphia International Airport (PHL) remains the last remaining hub stronghold for American in the Northeast, handling an increasingly important portion of premium traffic.

Market shares are shrinking

Unexpectedly, New York City is the most valuable business travel market in the United States. Over the past two decades, Delta Air Lines and United Airlines have slowly cemented their positions in the region, pushing American out of the market. Delta holds an impressive market share of nearly 30% at JFK, more than double the 12% that American controls at this massive airport.

Across the Hudson River, no airline comes anywhere close to United Airlines’ 70 percent market dominance. A similar picture emerges at domestic-focused LaGuardia Airport, where American Airlines’ market share has shrunk again to 22 percent, far behind Delta’s 40 percent, according to data from the Port Authority of New York and New Jersey.

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In Philadelphia, however, the trend is different, as American Airlines manages to maintain a strong position in the Mid-Atlantic market. According to airport statistics, American Airlines controls more than 60% of the passenger market at PHL, making it the airline’s only remaining true hub in the Northeast.

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Considering that American’s market share at Chicago O’Hare International Airport (ORD) has continued to fall behind United’s and that the airline has not reached 50% market share at DCA, the importance of Philadelphia has become even more important. As a result, the airline has sought to further expand its offerings from this location, including seven long-haul routes of more than 4,000 miles.

The unique exception

American Airlines’ remaining hubs are almost all located in the South and Southwest of the United States, making them less than ideal for high-value business travel demand. One notable exception is Miami International Airport (MIA).

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The state of Florida continues to grow as an economic location and Miami International Airport is undoubtedly the state’s most important facility. As major corporations and financial institutions expand their presence in the city, it is now more important than ever for American to capitalize on this unique opportunity.