American Airlines Unions Intensify Pressure on Board for Low Profits

• American captured just 4% of combined pretax profits among the big three U.S. carriers in 2025, with some flight attendants receiving as little as $150 in profit-sharing payouts
• A January winter storm exposed operational weaknesses, with American posting the highest cancellation rate and worst on-time performance among major carriers including Southwest, Alaska, United, and Delta
• Flight attendants plan a protest at American's Fort Worth headquarters Thursday, while pilot union leadership seeks direct board engagement after multiple unproductive meetings with CEO Isom's executive team

Summary: American Airlines Unions Intensify Pressure on Board for Low Profits

American Airlines faces unprecedented pressure from its unions over persistent underperformance compared to rivals Delta and United. The Association of Professional Flight Attendants (APFA) issued a historic no-confidence vote against CEO Robert Isom on Monday, marking the first time the union has voted against an American Airlines CEO. APFA plans to protest at the company's Fort Worth headquarters on Thursday, demanding leadership change and improved operational support.

Key Financial Data:

• American generated just $352 million in adjusted pretax profit in 2025, compared to $5 billion at Delta and $4.6 billion at United
• American captured only 4% of combined pretax profits among the three carriers
• Some flight attendants received as little as $150 in profit-sharing for 2025
• The airline expects to reduce debt below $35 billion in 2026, one year ahead of schedule

Operational Issues:

The pilots' union sent a letter requesting a meeting with the full board, warning of "persistent operational, cultural and strategic shortcomings." January data from OAG shows American lagged rivals in on-time performance and posted the highest cancellation rate among major carriers following a late-January winter storm.

Management Response:

CEO Isom told investors results "should start showing" in 2026 and emphasized accountability from leadership. American attributes underperformance to softer domestic markets, economic uncertainty, and a federal government shutdown.

Corporate governance experts note that employee unrest in customer-facing businesses can signal serious problems requiring board attention. The unions' public calls for leadership change are unusual outside formal contract negotiations, escalating this from a labor issue to a governance crisis.