American Airlines CEO Faces Growing Pressure as Airline Falls Behind Rivals

• American's 0.2% net margin in 2025 trailed far behind competitors Delta (7.9%) and United (5.7%), despite flying similar capacity, leading to meager employee profit-sharing payments.
• The pilots' union wrote to the airline's board seeking leadership changes, stating the airline 'is on an underperforming path and has failed to define an identity or a strategy to correct course.'
• The carrier is investing heavily in premium products including larger business-class cabins, upgraded food and beverage options, and airport lounge expansions, with Isom targeting 50% of revenue from premium offerings by the end of the decade.

Summary: American Airlines CEO Under Fire as Performance Lags Rivals

Key Financial Performance:

American Airlines reported just $111 million in profit for 2025 (0.2% net margin), drastically trailing competitors Delta Air Lines ($5.01 billion, 7.9% margin) and United Airlines ($3.35 billion, 5.7% margin), despite operating similar capacity. This underperformance resulted in minimal profit-sharing for American's 130,000+ employees.

Leadership Crisis:

CEO Robert Isom faces mounting pressure from pilot and flight attendant unions representing approximately 40,000 crew members. The Allied Pilots Association wrote to the airline's board Friday seeking a meeting, stating the airline "has failed to define an identity or a strategy to correct course" and calling for new leadership. Union leaders cite both poor financial results and operational failures during recent winter storms, where crews were stranded without accommodations.

Turnaround Strategy:

American is attempting to catch up through premium product expansion, targeting 50% of revenue from premium offerings by decade's end. Initiatives include:

• Larger business-class cabins on wide-body aircraft
• Three-class cabins on new Airbus narrow-bodies
• Enhanced food/beverage options (Lavazza coffee, Champagne Bollinger, caviar, beef Wellington)
• Expanded airport lounges

Market Competition:

American faces intense competition at Chicago O'Hare from United CEO Scott Kirby (whom American fired in 2016), where United generates approximately $10 billion versus American's $5 billion in revenue. Meanwhile, Southwest Airlines' stock has surged 30% in 2026 on transformation momentum, while American's stock remains flat.

Outlook:

Isom issued an optimistic 2026 outlook with record January bookings, emphasizing "2026 can't just feel different. It has to be different." However, analysts caution the turnaround will require significant time, noting Delta took over a decade to establish its premium market position.