Pressure mounts on American Airlines CEO as carrier lags behind competitors

American Airlineshe promised circulation this year started successfully.

Pilots and flight attendant unions have questioned CEO Robert Isom’s leadership as the airline’s performance has lagged rivals by a wide margin, leading to reduced profit sharing for American’s more than 130,000 employees. The airline tried to recover, fueling employee discontent major winter storms crews have been stranded in recent weeks – some without a place to sleep near the airport.

On Friday evening, the pilots’ union wrote to the airline’s management, asking for a meeting to discuss the carrier’s financial and operational issues.

“Our airline is in a bad place and has not been able to identify an identity or a strategy to correct course,” the Allied Pilots Association board of directors wrote. The union called for “leaders who are ready, equipped and empowered to put the house in order.”

Last year, the American earned $111 million, which exceeded revenue Delta Air Lines and United Airlinesthat’s more than $5 billion and $3.3 billion in revenue, respectively, even if American flies at that capacity in 2025.

“I know it’s a small profit sharing, the profit sharing pool is very small this year. Again, when you have success, you have some kind of profit sharing,” Isom told his staff. generating income results According to a transcript of the incident reviewed by CNBC on Jan. 27. “I’m disappointed in that.”

American is trying to catch up with competitors with premium products that fetch higher fares, a bright spot in the industry. increase in the income of the car interior could not be caught. It is also a failed A business travel strategy for the direct traveler that the American architect will step down in May 2024.

The year 2026 is very important for the carrier.

The Fort Worth, Texas-based airline issued a statement positive attitude Jan. 27, and Isom told crews he’s optimistic about improvements this year. He also noted that many employees, like flight attendants, cabin crew and other employees, work longer than their counterparts at United, where contracts are negotiated.

Isom is leading what he presents as a fundamental transformation of the American people. The strategy includes improving customer service, network and revenue management.

This week, he delivered his message to nearly 6,000 leaders at an airline conference at Globe Life Field in Arlington, Texas.

According to a transcript seen by CNBC, Isam said at the event, “We talked about how we as a senior leadership team can’t miss any opportunity … how we have to hold ourselves accountable.” “It starts with us, but it’s all of us here today and how you manage your teams. 2026 can’t just feel different. It has to be different.”

America’s forecast for 2026 comes as the U.S. grapples with the aftermath of a winter storm that blanketed much of the U.S. with snow, sleet and sleet and prepares for another storm that slammed into the main hub of Charlotte, North Carolina.

In addition to financial results slow storm recoveryangered leaders of the pilot and flight attendant unions, which together represent about 40,000 crew members.

This week, two American Airlines flight operations chiefs met with the union to discuss the latest issues, telling union members that “our pilots will no longer accept platitudes, nonsense and decisive action.”

Julie Hedrick, president of the Professional Flight Attendant Association, said on Jan. 27, according to Isham. He became the general director in 2022“the human factor is missing” and “most of us have been here too long and don’t see an end that will put us in a better place.”

Isom acknowledged that American crew members faced challenges during the storm that paralyzed large parts of the United States in late January, and called the weather “the most impressive” of his decades at the airline.

2025 was a very difficult year in America collision An Army Black Hawk helicopter landed on one the carrier’s regional jets he arrived in Washington, at Ronald Reagan Washington National Airport, and killed 67 people in total on both flights. The airline and its competitors have also suffered from the US government shutdown end of last year.

“We’re off to a fast start based on the booking trends we saw in January, all-time records for the first three weeks of the year,” Isom told analysts on Jan. 27 earnings.

But investors also want the airline to prove its worth.

US stocks have been roughly flat this year. Its competitor is 20 miles away in Dallas, Southwest Airlinesis also trying to reinvent itself, and its shares are up more than 30% in 2026. Shares of United and Delta are up more than 3% and 8%, respectively, for the year.

The southwest forecast is possible quadruple income this year, investors were full of envy. This carrier recently closed its largest conversion Almost 55 years in flight (for some traveler’s woes): last month’s first-ever seat assignments, its first-ever addition of bag fees, and the introduction of basic economy tickets and other changes. Investor confidence lifted Southwest shares to their highest level in nearly four years after reporting results last month.

All U.S. carriers are spending heavily on premium travel in standard coach, and even Southwest is considering opening its first airport lounge, its CEO told CNBC last year.

American is also upgrading its wide-body planes with larger, single business-class cabins, adding three-class cabins to new Airbus narrowbodies and expanding airport lounges. There is also an airline updated its food and beverage options, including Lavazza coffee and Champagne Bollinger. For its 100th anniversary this spring, it will also add caviar and beef Wellington for premium long-haul cabins.

Isom said he expects half of American revenue to come from “premium offerings” by the end of the decade.

One of the most important battles for Americans is at Chicago O’Hare International Airport United chief executive officer Scott KirbyIn 2016, the American fired, promised to keep his old employer free.

Both carriers are ramping up their schedules next summer. Deutsche Bank estimated in a note Monday that United will earn about $10 billion at O’Hare, while American will earn more than $5 billion.

At the time of American’s earnings report, United posted a digital billboard in Chicago that read, “More on time, fewer canceled flights. Aadvantage, United,” using the same spelling as American’s AAdvantage loyalty program. Bankrupt Spirit Airlines is also seeking to transfer two gates at Chicago O’Hare to United for $30 million, which would give United more space at the airport.

But questions remain for Americans from Chicago to Charlotte.

“It’s unclear whether the current strategy will close the margin gap with its peers,” Conor Cunningham, an airline analyst at Melius Research, said of American. “It takes a long time to execute. You can’t just add premium income.”

“It took more than a decade for Delta to build a premium image,” Cunningham added, referring to the U.S. revenue leaders. conversion.