CEO Robert Isom said the carrier is upgrading lounges, cabins and reliability as it tries to narrow a profit shortfall versus United and Delta.
American Airlines is stepping up a premium-travel strategy as CEO Robert Isom tries to close the carrier’s margin gap with United Airlines and Delta Air Lines. The Fort Worth-based airline is upgrading airport lounges, refreshing more long-haul cabins, improving reliability and weighing a new wide-body aircraft order from Boeing or Airbus as early as this year to attract higher-spending customers. Analysts expect American to earn 64 cents a share on an adjusted basis this year, up almost 80% from last year, with Wall Street projecting adjusted earnings of $2.58 a share in 2027. The effort comes as American, despite operating about 6,500 daily flights, still trails its larger rivals on profitability, punctuality and premium revenue, while also working down a $35 billion debt load.