In April 1934, American Airways became American Airlines. C.R. Smith was elected president of of the company on October 25, 1934.

Upon taking the helm C. R. Smith had to shape up a chronically unprofitable and inept company with disconnected routes, a disparate fleet, and demoralized employees.

"Mr. C.R.," or simply "C.R.", quickly demonstrated that he was up to the challenge.

C.R. consolidated American's crazy-quilt routes into a smooth, sensible network and standardized the company's collection of various airplanes with a fleet of new DC-3 aircraft.

Under his leadership, American achieved it first profit ($4,600) in 1936.

By the end of the decade, American Airlines was carrying a third of the nation's domestic air travelers and earning nearly $2 million a year. It boasted an integrated national route system, a completely standardized fleet, and a staff that prided itself on its esprit de corps.

A cornerstone of his rebuilding program was safety. Smith hammered home to employees the necessity of operating a safe airline, emphasizing that nothing else mattered if the public decides a carrier cannot be trusted. The masthead of every issue of American Horizons proclaimed: "Aviation is not unsafe but, like the sea, it is terribly unforgiving of any carelessness or neglect."

He also had to convince a public new to flying that airline travel was trustworthy.

His efforts paid off. American Airlines received a National Safety Council award in April 1941 recognizing the airline as the first in the world to operate one billion passenger miles (over five years) without a fatality.