Robert Isom seeks to close American Airlines' profit gap through premium investments and a new wide-body aircraft order.
Robert Isom, the CEO of American Airlines, is implementing a long-range plan to close a growing profit gap against industry leaders Delta Air Lines and United Airlines. Despite flying more flights per day than its closest competitor, American Airlines has trailed Delta by nearly $5 billion in profit last year. To address this, the administration of the carrier is focusing on high-end revenue by refreshing cabin interiors, expanding its loyalty program, and improving the customer experience. The airline is currently pursuing a new wide-body aircraft order and a major lounge expansion, including a 37,000-square-foot Admirals Club in Dallas. While American has mastered operational efficiency, Isom noted that the carrier must now focus on capturing more premium spenders. Although United Airlines suggested a potential merger, Isom dismissed the idea as currently unfeasible. Wall Street remains optimistic, forecasting that the carrier's adjusted earnings could quadruple by 2027 as it continues to modernize its fleet and service culture.