Amid growing pressure, American Airlines is struggling to match United and Delta’s performance as the aviation industry continues to shift. United reported strong margins and stock performance, while American lags behind, with its hubs facing profitability questions.
Executives at United acknowledged the need to close the gap between their carrier and American’s, emphasizing efforts to improve connectivity in major hubs like Chicago, Houston, and Denver. However, challenges remain, particularly as American faces a revenue generation issue that threatens to widen the margin disparity.
According to OAG, American holds only 49% of flights at Chicago and 50% at Denver compared to United’s low percentages. Meanwhile, Delta dominates Atlanta with 75% of flights, while United and American struggle in Dallas and Charlotte.
Dennis Tajer of the Allied Pilots Association warned that Robert Isom’s leadership could be testable as the airline strives to recover from last year’s struggles. At the same time, Stephanie Link at Hightower Advisors called American “the beaten down guy” but noted the carrier’s competitive pricing in a defensive market.
United executives avoided directly naming American during their call, but their focus on capacity management and route frequency suggests a strategic shift away from low-margin routes toward more profitable ones.
Source: https://www.forbes.com/sites/tedreed/2025/01/22/american-airlines-must-take-the-stage-after-delta-and-united-shine