American Airlines CEO Robert Isom is focused on closing a profit gap exceeding $3 billion compared to rivals United Airlines and Delta Air Lines. Despite American operating around 6,500 daily flights—a volume surpassing Alaska Airlines’ total—its profitability lags behind its major competitors. Isom outlined plans to enhance the airline’s premium offerings, including upgraded cabins, expanded airport lounges, and a new wide-body aircraft order from Boeing or Airbus, aiming to attract higher-spending customers and improve revenue margins.
The carrier is placing significant emphasis on improving customer experience and growing its loyalty program to drive higher-end revenue. Analyst forecasts predict American’s adjusted earnings per share to nearly double this year compared with 2025, with expectations for continued growth next year. American is renovating cabins on long-haul aircraft and expanding its business-class presence with lie-flat seats, which can generate substantially higher revenue on international routes, as well as investing in satellite Wi-Fi services for enhanced inflight connectivity.
To further appeal to premium travelers, American is developing the largest Admirals Club lounge at Dallas Fort Worth International Airport, its biggest hub undergoing a $12 billion upgrade. The airline faces challenges in maintaining high-touch service levels, particularly as it introduces larger business-class cabins with fewer flight attendants, which has drawn concerns from staff unions. Additionally, American aims to expand its network reach and enhance sales efforts in competitive markets such as Los Angeles, Chicago, and Washington, D.C., while leveraging its extensive North American footprint.
Isom remains steadfast that a merger with United Airlines is not on the horizon due to regulatory and historical barriers. Instead, American is concentrating on internal improvements and strategic investments to close the competitive margin gap. With a fleet that includes the youngest planes among major U.S. carriers but aging wide-body aircraft, the airline is considering new orders that could shape its future long-haul capabilities and premium service experience heading into the next decade.
Start the discussion with a take, question, or market read.