The world’s largest airline, American Airlines (NASDAQ: AAL) is again in the penalty box, and this time the noise isn’t coming from Wall Street alone; it’s coming from the cockpit, the cabin and the hangar floor.
The carrier’s long-promised turnaround is wobbling just as rivals pull away.
Delta and United are printing money from premium travel, while American scrapes out profits that barely move the needle.
Last year’s US$111 million result looked respectable until it was set beside Delta’s $5 billion and United’s $3.3 billion, achieved while flying broadly similar capacity.
For American’s 130,000 staff, that gap showed up where it hurts most: thin profit-sharing and thinner morale.
The discontent is no longer sotto voce.
Pilots and flight attendants, representing around 40,000 frontline workers, have openly questioned whether the airline has a coherent plan or the leadership to deliver one.
The pilots’ union has gone directly to the board, warning that the airline lacks a clear identity and is drifting further off course.
In other words, the people flying the planes don’t believe management knows where it’s going.
That frustration intensified after a brutal run of winter storms.
American was slower than its competitors to recover, leaving crews stranded and passengers fuming.
Unions argue the airline keeps relearning the same hard lessons, with operational reliability still lagging peers.
The financial story is just as awkward.
American’s profits fell sharply in 2025, shrinking the pool for employee bonuses to what the CEO himself described as “meagre”.
The share price has barely budged this year, while United and Delta grind higher, and Southwest, mid-reinvention, has surged.
In a market that rewards credible change, American looks stuck between slogans and execution.
Meanwhile, management insists the fix is underway.
The airline is pouring money into premium cabins, lounges and food, chasing higher-yield passengers who pay more for space, service and flexibility - aka premium revenue.
This is where the industry’s growth is coming from as standard economy fares stall.
American says half its revenue will come from these offerings by the end of the decade.
The problem is that the premium doesn’t switch on like a light.
Delta spent more than a decade building its reputation and systems before the cash followed, while United started earlier and is now reaping the benefits.
American is trying to sprint a marathon, while also repairing the damage from a scrapped business-travel strategy that alienated corporate customers.
All of this lands squarely on CEO Robert Isom, in the job since 2022.
By most accounts, he is earnest, experienced and steady in a crisis.
But union leaders say he’s missing the “human factor” - the ability to rally exhausted staff behind a convincing story of where the airline is heading and why the pain is worth it.
That matters more than any aircraft refit.
Airlines are service businesses run by people in uniform, not spreadsheets.
Without trust from frontline staff, no strategy survives contact with reality.
Right now, that trust looks badly frayed.
The board’s silence is becoming part of the story.
Directors are paid to represent shareholders, not defend the status quo.
Yet as performance slides and competitors sharpen their edge, there’s little sign of intervention beyond supportive statements.
Investors, like employees, are asking the same question: if this is the plan, when does it start working?
American still has formidable assets, dominant hubs, strong partners and a valuable Latin American network.
However, turning it around will take more than nicer lounges and better coffee.
It will take a leader who can clearly explain what American wants to be, convince staff it’s achievable, and then execute without excuses.
Until that happens, the pressure will keep building, one delayed flight and one disappointing earnings report at a time.
American Airlines last closed at US$15.24, rallying 14.6% for the week despite a broader decline over the last year.
