American Airlines Thrives Under Isom Amid Challenges

Sensational headlines in various business outlets proclaim a fierce internal conflict at American Airlines, where union representatives have voiced distrust in CEO Robert Isom. Commentators are joining the fray, with casual observers drawing hasty parallels between American’s stock performance and that of standout competitors like Delta and United, overlooking the distinct operational realities of American, which transports the highest volume of passengers globally.

As the esteemed German leader Konrad Adenauer wisely observed, ‘We all live under the same sky, but we do not all share the same horizon.’

This prevailing media portrayal, fraught with inaccuracies, entirely overlooks the broader strategic landscape. The true narrative reveals that Robert Isom is steering American Airlines toward unprecedented achievements, undeterred by unfounded criticisms from detractors driven by their own agendas. Isom’s stewardship exemplifies extraordinary resilience across every facet of the business.

Undoubtedly, the leadership at Delta and United stands out as exemplary in every respect. No executives in the country surpass those in the airline sector regarding operations, finances, strategy, and personal integrity. However, simplistic side-by-side evaluations of Delta, United, and American based on prominent financial indicators can prove profoundly misleading.

Consider the statistic frequently highlighted: American Airlines posted profits of $111 million in 2025, in stark contrast to Delta’s $5 billion and United’s $3.4 billion in net earnings, with the stocks of United and Delta surpassing American’s over recent years. Does this settle the matter? Far from it, for multiple compelling reasons.

To begin with, under Isom’s tenure as CEO, American Airlines has avoided annual losses entirely. This holds true even in his inaugural year of 2022, amid lingering pandemic disruptions that saw the airline incur a nearly $2 billion loss in the first quarter alone. Regarding 2025 figures, such peer comparisons fail to account for the airline industry’s pivotal structural dynamic: United maintains over a $1 billion yearly cost edge over American, thanks to outdated contracts for its non-pilot staff—including flight attendants, mechanics, fleet service personnel, and customer service teams—that fall well below current market standards. American, by contrast, has secured agreements with all these groups, compensating flight attendants approximately 35% higher than United’s rates. Pilot pay remains equivalent across airlines, complete with matching profit-sharing terms. Once United renegotiates its contracts to align with market realities—which is inevitable—that substantial profit disparity will largely dissolve.

Put simply, Isom has prioritized substantial investments in his workforce. American Airlines employs over 130,000 individuals, with about 87% belonging to unions—a figure roughly 15 times the U.S. private sector norm for unionization. No other airline worldwide has more unionized staff than American. Isom ensured competitive, forward-looking compensation because it was ethically imperative. The unions now criticizing him oversee the highest-paid employees in the sector. The situation’s irony is striking, almost comical, were its implications not so significant.

Some murmurs suggest that the ‘no confidence’ resolution from the Association of Professional Flight Attendants (APFA) and murmurs from the Allied Pilots Association stem from internal union politics rather than authentic worker discontent. In one instance, it appears to be posturing by a competing faction vying for representational authority through exaggerated rhetoric, rather than reflecting true employee sentiment toward Isom, who garners widespread personal admiration from staff. The decisive evidence lies in contract approval votes: a robust 87% from flight attendants and exceeding 90% from mechanics. Isom’s ‘No Jerks’ philosophy transcends mere corporate slogan; it embodies a genuine organizational culture that employees acknowledge, even as union heads opportunistically contradict it.

Furthermore, peer comparisons neglect American’s unparalleled domestic network strength in the United States. Although United and Delta cater to a greater proportion of international passengers, American provides unmatched accessibility to flights nationwide, complemented by an exceptional offering for international routes, business travelers, and premium services. Looking ahead, American stands to gain immensely from its forthcoming Citi partnership, projected to generate over $10 billion yearly by decade’s end. This alliance positions American competitively alongside Delta’s American Express deal and United’s Chase arrangement, fueling expansion into lucrative, high-margin segments.

Additionally, such comparisons disregard the array of distinctive challenges Isom has adeptly managed—obstacles no leader could avert and which spared American’s rivals entirely.

Boasting the world’s largest fleet, American Airlines ranks among Boeing’s top clients. The well-chronicled turmoil in Boeing’s production and delivery processes reverberated industry-wide, but American bore the brunt due to its extensive order backlog and delivery timelines. Isom merits praise for his proactive measures to cushion these blows, including schedule adjustments to cope with severe aircraft shortages and supply chain breakdowns.

Severe weather added another layer of difficulty. In January 2026, Winter Storm Fern inflicted the most massive weather-induced operational meltdown in American’s century-long history, forcing the cancellation of over 9,000 flights in just four days and costing an estimated $150 million to $200 million in revenue. The storm crippled American’s primary hubs at Dallas Fort Worth (DFW) and Charlotte with relentless ice and freezing precipitation. Meanwhile, Delta’s Atlanta and United’s O’Hare hubs escaped with minimal impact. Winter Storm Gianna followed shortly, disproportionately battering American’s East Coast operations.

Earlier in 2025, Isom confronted the heartbreaking incident of Flight 5342—a fatal midair clash at Reagan National Airport involving a rogue military helicopter, for which American bore no responsibility. His handling drew universal acclaim for its swiftness, empathy, and sense of duty; he arrived at the site within hours. The subsequent prolonged flight curbs at Reagan National have saddled American with persistent revenue and operational strains unmatched by competitors. Yet, leadership occasionally demands balancing priorities beyond pure profitability, and Isom’s graceful management of this crisis demonstrates that profitability and principled action can coexist harmoniously.

Compounding these issues—Boeing woes, targeted severe weather at core hubs, the Flight 5342 disaster, and a labor cost structure that masks a strategic strength as a liability—was the sharp three-month downturn in consumer spending post-‘Liberation Day,’ which hammered domestic leisure air travel demand. This comprehensive backdrop explains why, despite barrages from skeptics, Isom warrants recognition for masterfully guiding the airline through an extraordinarily turbulent period.

Amid these trials, Isom’s overlooked triumphs merit spotlight. He has slashed debt far ahead of projections, reducing the balance sheet by $17 billion since mid-2021—a feat once deemed unlikely when bankruptcy loomed for many observers. In 2024, he committed to 260 new aircraft, marking the second-largest fleet expansion in company annals, with options for 193 additional planes. He is deploying complimentary high-speed satellite Wi-Fi fleet-wide, encompassing regional jets, surpassing all U.S. carriers in coverage.

Innovative tools now enable passengers to rebook disrupted flights seamlessly on their own—a feature unmatched at scale by peers. Expansions in biometric screening, state-of-the-art kiosks, and a real-time connection-risk forecasting system across seven hubs enhance efficiency by identifying vulnerable passengers and suggesting delays. In August 2025, American hit its 1,000th mainline aircraft, securing not just the biggest but the freshest fleet among major U.S. network airlines. Notably, he secured aviation’s largest-ever provisional order for hydrogen-electric engines, pioneering zero-emission propulsion. His partnership acumen shines through strengthened ties with global allies, oneworld alliance growth, and a promising JetBlue collaboration halted only by regulatory hurdles.

Isom champions U.S. air traffic control reforms, collaborating across sectors and government for enhanced safety. He spearheads multibillion-dollar hub investments, such as Reagan National’s new regional concourse and a pivotal $5 billion DFW expansion and modernization. Wall Street analysts remain predominantly bullish.

These feats underscore why Isom succeeded Doug Parker, the visionary who forged today’s U.S. airline landscape via mergers and turnarounds, partnering with unions to surmount 9/11, the Great Recession, and COVID. The transition from Parker to Isom exemplified flawless succession, with Isom amplifying American’s inherent advantages, even if media often undervalues them.

The industry edges toward fading memories of charismatic pioneers like Juan Trippe, Eddie Rickenbacker, Lamar Muse, Herb Kelleher, and Ed Beauvais, plus icons such as Bob Crandall, Ed Colodny, Al Casey, Frank Borman, Frank Lorenzo, and Gordon Bethune. Isom, akin to Parker, shuns showmanship unlike those aviation legends. In an age of celebrity CEOs, some overlook deeper narratives. Isom eschews self-promotion, delegating tough tasks; instead, he dives in personally, uniting executives and staff around execution over acclaim. The data paints a vivid portrait of Isom’s astute, courageous command of American Airlines.

Pan Am’s Juan Trippe imported seafaring terms like ‘boarding,’ ‘captain,’ ‘first officer,’ ‘cabin,’ ‘galley,’ ‘port/starboard,’ ‘deck,’ ‘autopilot,’ and ‘logbook’ into aviation lexicon. Isom evokes another nautical idiom for pundits to heed: ‘still waters run deep.’