American Airlines Races to Close a $3 Billion Profit Gap With Rivals

American Airlines is flying more planes than anyone else — yet making far less money than its biggest rivals. The company's boss now has a plan to fix that.

Here's the surprising math. American runs about 6,500 flights per day, more than any competitor. But when it comes to profit (the money left over after paying all the bills), it's falling behind:

• United Airlines earned about $3 billion more than American last year
• Delta Air Lines, the industry's profit leader, earned nearly $5 billion more

So why is American flying more but earning less? The main issue is the revenue gap (the difference in how much money each airline collects from customers). Delta and United figured out years ago that wealthy travelers will pay top dollar for fancy seats and perks — and American is now trying to catch up.

CEO Robert Isom wants American to be seen as "a premium global airline" — meaning a high-end company that attracts big spenders. His plan includes:

• Bigger, more luxurious airport lounges (private waiting areas for premium passengers), including a giant 37,000-square-foot lounge in Dallas
• New wide-body aircraft (large long-distance planes) with upgraded interiors
• New business-class "lie-flat" seats that can bring in nearly $10,000 on some international flights — compared with about $2,000 or less for a regular seat
• Adding satellite Wi-Fi from SpaceX's Starlink

The money side looks hopeful. Analysts (financial experts who predict company results) expect American to earn:

• 64 cents per share this year (up almost 80% from last year)
• $2.58 per share in 2027

("Per share" means profit divided by the number of ownership pieces of the company.)

One concern comes from flight attendants. Their union warns that fewer staff serving fancier cabins could mean slower service and disappointed customers.

The bottom line: American is betting that offering more luxury will finally help it close the huge profit gap with Delta and United. Its next earnings report on Thursday will show whether the plan is working.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/07/19/american-airlines-ceo.html