American Airlines CEO outlines plan to narrow profit gap

American Airlines strategy targets premium cabins, stronger loyalty revenue, and new aircraft to close the profit gap with United and Delta—see what changes next

American Airlines CEO Robert Isom is outlining a strategy to help the carrier catch up with rivals such as United and Delta, which have generated billions more in profit. The airline, based in Fort Worth, Texas, is focusing on premium cabins, stronger loyalty revenue, better lounges, and a broader network as it tries to improve results. The company said it plans to invest further in cabin upgrades, new aircraft, and airport facilities, including a larger Admirals Club lounge at Dallas Fort Worth International Airport. American is also considering a new widebody aircraft order, with Airbus and Boeing both under review. Executives said the goal is to increase higherend revenue rather than rely only on efficiency. American continues to face challenges, including lower ontime performance than some rivals and a heavy debt burden, although it has reduced that debt from pandemicera highs. Isom also rejected renewed merger speculation with United, saying the airline is focused on its own turnaround and longterm plan.