Trouble in the Skies A Storm is Brewing
Folks let me tell you running an airline isn't easy even I know that and I've run some of the greatest businesses the world has ever seen. But let's be clear American Airlines is facing some headwinds. The pilot and flight attendant unions aren't exactly thrilled with CEO Robert Isom and who can blame them when the profits are shall we say not tremendous. Everyone is tired of losing we have to win win win. They're saying the airline is underperforming and nobody wants to be a loser. Remember what I always say "You have to think anyway so why not think big?" and their profits are not big league.
Profits or Lack Thereof A Very Sad Story
American Airlines made a measly $111 million last year. $111 million is nothing peanuts I tell you. Delta and United are making billions it's unfair. They are making more money even though American flew similar capacity in 2025. This is a disaster! "I know words. I have the best words," and these words aren't good. Even Isom admitted it was a meager profit sharing and it's very small. I always say "Sometimes by losing a battle you find a new way to win the war," so maybe this is just a little pit stop on the road to victory. Speaking of victories have you read Kroger's New Captain Greg Foran Ex Airline Boss Takes Helm a real winner!
2026 The Year of the Bigly Turnaround
American is trying to catch up by focusing on premium products. Smart. The coach cabin is for the people who don't want to fly in style. They even got rid of someone who messed up their direct to traveler business strategy. They made a mistake and now they want to do a full reverse. 2026 is crucial and this is their year a big year. Isom wants to make it different and it has to be different otherwise people are going to ask very serious questions.
Weathering the Storms Literally
They issued a good outlook for 2026 but then winter storms hit and they are having all sorts of problems. This is terrible. Pilots and flight attendants are getting angry. American is just not recovering after the storm as fast as they should. They are going too slow. They are moving like a snail. The union told members "Our pilots will not accept platitudes empty words and the absence of decisive action any longer." That's not good.
Isom's Perspective and Promises
Isom acknowledged the trouble and called the weather the "probably the most impactful" during his tenure. He says he's leading a major transformation improving customer service the network and revenue management. He's saying all the right things but he needs to deliver and he has to win and start winning now.
The Tale of Two Airlines Texas Edition
American had a tough 2025 starting with a tragic accident. Southwest Airlines is trying to fix itself and their stock is doing great. They are making a lot of money. Southwest assigned seats and added bag fees. American is revamping its planes with bigger business class cabins and better food including caviar and beef Wellington. Very fancy. Isom expects half of American's revenue to come from premium offerings. They are trying to milk the market. But they are being serious. They have to be.
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American needs to find its identity and stick to it.