American Airlines Launches Premium-Revenue Drive to Narrow Profit Gap with United and Delta

American Airlines CEO Robert Isom unveiled a multi-pronged strategy aimed at closing the airline’s earnings shortfall relative to United Airlines and Delta Air Lines. The plan centers on expanding high-margin premium products—new wide-body aircraft, upgraded cabins, and the largest Admirals Club lounge in the carrier’s network at Dallas-Fort Worth International Airport (DFW)—while leveraging its loyalty program and network breadth to attract higher-spending travelers.

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American operates roughly 6,500 flights per day in 2025, a volume comparable to an entire Alaska Airlines schedule, yet its profit gap has widened. United posted about $3 billion more profit and Delta nearly $5 billion more in the prior year. The airline entered 2025 with a $35 billion debt load, down from a pandemic-era peak of $54 billion, and a $1.6 billion loss in the quarter when Isom assumed the CEO role in March 2022. Competitive pressure has intensified as rivals have long emphasized premium pricing and seat-upgrade revenue.

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• Robert Isom, CEO, American Airlines Group Inc. – former Northwest and America West executive, leading the current premium push.

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• Heather Garboden, Chief Customer Officer – overseeing lounge and cabin experience upgrades.

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• Julie Hedrick, President, Association of Professional Flight Attendants – representing flight-attendant interests.

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• Dennis Tajer, Spokesperson, Allied Pilots Association – voice of the pilots’ union.

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• Jay Barney, Professor of Strategic Management, University of Utah – external industry analyst.

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• American’s fleet: >1,000 aircraft, the youngest among the three largest U.S. carriers, thanks to a 400-airplane order placed ~15 years ago.

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• Wide-body inventory: dozens of Boeing 777s averaging >20 years old; new wide-body order under consideration from Boeing and Airbus, with delivery expected in the early-mid 2030s.

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• Projected 2026 adjusted earnings: $0.64 per share, an ~80 % increase from the prior year per analyst estimates.

American Airlines plans upgrades and new planes...

• Business-class lie-flat seats on long-haul routes can generate ? $10,000 per seat versus ? $2,000 for economy seats.

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Isom emphasized that American’s “long-range plan is certainly making up the margin gap,” and noted that the carrier will measure progress by “closing the revenue gap and closing the unit revenue gap.” CFO Devon May highlighted the focus on loyalty-program growth, network expansion, and higher-end revenue streams. Chief Commercial Officer Nat Pieper stressed the need to win “jump-ball markets” such as Los Angeles, Chicago, and Washington, D.C., while the commercial team works on technical changes to increase premium seat sales.

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The flight-attendant union warned that reducing crew numbers on the new 70-seat Business Suites could lengthen service times and diminish passenger experience. Union president Julie Hedrick warned that “the result will be longer service times and a customer experience that falls short of what passengers expect.” Pilots’ union spokesperson Dennis Tajer described the airline as “a giant — with a limp,” reflecting concerns over operational efficiency amid the premium push.

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• “to be best at everything that we do.” — Robert Isom, CEO

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• “I've never been deterred, no matter what the challenges that we face,” — Robert Isom, CEO

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• “Now, as American introduces 70 Business Suites and markets a premium international experience, they're expecting a reduced number of Flight Attendants to deliver significantly more personalized service,” — Julie Hedrick, President, Association of Professional Flight Attendants

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• “ In another lure for premium travelers, Chief Customer Officer Heather Garboden told CNBC that American is going to build the biggest Admirals Club lounge in its network, at 37,000 square feet, at its sprawling Dallas Fort Worth International Airport hub in Terminal C.” — Heather Garboden, Chief Customer Officer

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• “Changing a service culture is hard, but not impossible,” — Jay Barney, Professor of Strategic Management

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American will provide an updated performance outlook when it reports second-quarter results on Thursday (date unspecified). The carrier also plans to announce details of its forthcoming wide-body aircraft order later this year, with deliveries slated for the early to mid-2030s.

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