Addressing employees on Jan. 27, Isom acknowledged that the company’s meager results yielded “a very small profit-sharing pool” and expressed disappointment, according to an internal recording reviewed by CNBC. The comments coincided with the release of American’s 2026 outlook, which projected improvement on the back of upgraded premium products and a broader operational overhaul.
Storm recovery under scrutiny
While management touted a turnaround, winter storms in late January exposed persistent vulnerabilities. Severe snow, ice and sleet stretched across much of the United States, and American struggled to restore its schedule, particularly at its Charlotte, North Carolina, hub. Crews were left stranded near airports, and some lacked guaranteed lodging, union officials said. Competitors recovered more quickly, underscoring American’s operational lag.
The Association of Professional Flight Attendants, representing roughly 28,000 members, criticized the carrier’s response. Union president Julie Hedrick said Isom “is missing the human factor,” arguing that prolonged disruptions showed little sign of a lasting fix.
Transformation plan faces key test in 2026
Isom has framed 2026 as a pivotal year. Speaking to approximately 6,000 company leaders at Globe Life Field in Arlington, Texas, he urged managers to “hold ourselves accountable” and insisted the airline’s culture and performance “can’t just feel different” but “has to be different.”
The transformation blueprint emphasizes:
- Expanding premium seating and services to command higher fares.
- Overhauling revenue management after a short-lived push to sell directly to business travelers faltered in 2024.
- Refreshing lounges, onboard food and beverage, and cabins on both wide-body and new narrow-body aircraft.
American aims for premium offerings to generate roughly half of total revenue by the end of the decade. To bolster that push, the airline is installing larger business-class cabins on long-haul jets, introducing three-class layouts on new Airbus narrow-bodies, and enhancing lounge amenities. Menu upgrades include Lavazza coffee, Bollinger Champagne, and limited-edition items such as caviar and beef Wellington as part of the carrier’s upcoming 100th-anniversary celebrations.
Industrywide, carriers are investing heavily in high-margin cabins. Even Southwest Airlines, traditionally focused on one-class service, has introduced basic economy fares, bag fees and assigned seating, moves that helped drive its stock more than 30 percent higher this year. By comparison, American’s shares have been roughly flat in 2026, while United and Delta have each recorded single-digit gains.
Operational challenges compound pressure
American’s difficulties preceded the recent storms. Early 2025 was marred by the collision of an Army Black Hawk helicopter with one of the company’s regional jets at Ronald Reagan Washington National Airport, killing 67 people aboard both aircraft. Later that year, the federal government shutdown added further complexity to day-to-day operations.
Despite those setbacks, January booking trends set “all-time records” in the first three weeks of 2026, Isom told analysts during the earnings call. Still, investors remain cautious, awaiting evidence that the airline can close its profit gap with peers—a process analysts say could take years. Conor Cunningham of Melius Research noted that Delta required more than a decade to establish its premium reputation, suggesting American’s timeline may be similarly prolonged.
Chicago rivalry intensifies
A focal point of American’s strategy is Chicago O’Hare International Airport, where the airline is vying with United for market share ahead of the busy summer season. Deutsche Bank estimates United generates roughly $10 billion in annual revenue at O’Hare, compared with American’s more than $5 billion. In a recent marketing salvo, United placed a digital billboard in Chicago touting its on-time performance and fewer cancellations, a direct comparison to American’s “AAdvantage” framework.
United could soon widen its footprint at O’Hare further. Spirit Airlines, currently in bankruptcy proceedings, is seeking court approval to sell two gates at the airport to United for $30 million, a move that would give United additional operational depth while limiting American’s expansion options.
Leadership under examination
The dual push for financial improvement and operational reliability places heightened scrutiny on American’s executive team. Unions representing approximately 40,000 pilots and flight attendants have warned that patience is waning, emphasizing that “platitudes” will not suffice. Their appeals intensify stakeholder pressure just as the airline embarks on what management pledges is a comprehensive reset.
For context, the U.S. Department of Transportation, which tracks on-time performance and consumer complaints across carriers, has reported wide variances in operational reliability—a factor that can materially influence profitability. Detailed monthly data can be accessed through the department’s Air Travel Consumer Reports.
Whether American can narrow the margin gap while satisfying investors and employees alike may hinge on the execution of its 2026 initiatives and its ability to manage unforeseen disruptions more effectively than in prior years. For now, the combination of modest profits, storm-related missteps and union opposition continues to challenge Isom’s effort to redefine the airline’s trajectory.
Crédito da imagem: Afp | Getty Images
