Pressure Mounts on American Airlines CEO as Carrier Trails Rivals

Pressure is intensifying on American Airlines Chief Executive Robert Isom as the carrier continues to underperform rivals financially and faces growing criticism from employee unions following recent operational disruptions.

American reported a profit of just $111 million last year, a stark contrast to competitors Delta Air Lines and United Airlines, which posted profits of roughly $5 billion and more than $3 billion, respectively, despite operating similar capacity.

Pilot and flight attendant unions have raised concerns about the airline’s strategic direction and leadership, particularly after a difficult recovery from major winter storms earlier this year that left crews stranded and disrupted operations across several hubs.

Late Friday, the Allied Pilots Association wrote to American’s board of directors seeking urgent talks, warning that the airline is “on an underperforming path” and lacks a clear strategy to close the gap with competitors.

Isom responded on Saturday, saying it would be “most appropriate” to meet as soon as possible and stressing alignment between management and the board on strengthening the airline.

Employee frustration has been compounded by lower profit-sharing payouts. Addressing staff after the release of earnings on January 27, Isom acknowledged the disappointment, noting that minimal profitability results in limited profit-sharing.

American is attempting to catch up with rivals by reshaping its business around higher-margin premium offerings, including expanded business-class cabins, upgraded lounges, and enhanced onboard services. The airline is also working to repair the fallout from a failed business-travel strategy that was abandoned in 2024.

The Fort Worth, Texas-based carrier has described 2026 as a pivotal year. Isom recently told thousands of company leaders that change must translate into tangible results, stressing that “2026 can’t just feel different. It has to be different.”

Despite issuing an optimistic outlook for the year, American’s slow recovery from recent storms, particularly compared with competitors at major hubs such as Charlotte, has drawn renewed criticism from labor leaders, who represent about 40,000 crew members.

American maintained its 2026 revenue growth outlook, but investor confidence remains cautious. The airline’s shares are broadly flat this year, lagging gains at Delta, United, and Southwest Airlines, which has seen its stock surge following its own business overhaul.

Analysts say American faces a long road to closing the margin gap with peers, warning that building a premium revenue base is a multi-year effort rather than a quick fix.