American Airlines Unions Intensify Pressure on Board Over Profit Gap

CHICAGO, Feb. 12 — American Airlines’ largest labor unions are escalating pressure on the company’s board of directors, arguing that the carrier’s lagging profitability compared with rivals Delta Air Lines and United Airlines has become a leadership and governance issue.

For years, American has trailed its two biggest competitors in earnings. Now, union leaders say the gap reflects deeper strategic and operational problems that require action from the top.

In recent days, tensions have sharpened. The pilots’ union has urged the airline’s board to take “decisive action” and formally requested a meeting with the full board of directors. Meanwhile, the Association of Professional Flight Attendants (APFA) issued a no-confidence vote in Chief Executive Officer Robert Isom — the first such vote against an American CEO in the union’s history — and called for leadership change.

Public demands for executive removal from labor groups are rare outside of contract negotiations, making the move particularly notable.

“Dangerously Behind” Rivals

The APFA said American is falling “dangerously behind” competitors and accused management of failing to deliver on reliability and profitability.

“At the end of the day, our management team, we feel, has failed us,” APFA President Julie Hedrick said. “We don’t want to be left with a company that isn’t competitive.”

The union plans to hold a protest outside American’s headquarters in Fort Worth, Texas, to push its demands for greater accountability and improved operational support.

American Airlines declined to comment directly on the no-confidence vote but pointed to Isom’s recent public remarks outlining a turnaround strategy focused on premium offerings, operational improvements and rebuilding corporate travel demand.

During last month’s earnings call, Isom acknowledged the company’s performance challenges and said the airline’s turnaround efforts should begin delivering meaningful results in 2026.

“It starts with us at the top,” Isom told employees at a leadership conference. “2026 can’t just feel different. It has to be different.”

A Stark Profit Gap

The unions’ frustration is rooted in stark financial comparisons.

On an adjusted pretax basis, American generated just $352 million in 2025. By contrast, Delta earned roughly $5 billion and United about $4.6 billion during the same period.

JPMorgan analysts estimate American accounted for less than 4% of the combined pretax profits of the three airlines last year. However, that share is expected to improve to about 12% in 2026 if the turnaround gains traction.

American’s stock performance has also lagged. Over the past year, its shares have fallen roughly 10%, while Delta and United have posted gains of about 14% and 12%, respectively.

Management has attributed the underperformance to weakness in the domestic travel market, broader economic uncertainty and disruptions such as the recent federal government shutdown, which dampened bookings.

The weaker profits have also translated into smaller profit-sharing payouts for employees. According to the flight attendants’ union, some crew members received as little as $150 in profit-sharing for 2025.

At a recent staff town hall, Isom reportedly described the payouts as “meager” but noted that limited profits inevitably lead to smaller distributions.

“When you break even, that’s the kind of profit sharing you have,” he said, according to an audio recording reviewed by Reuters.

Pilots Seek Direct Board Engagement

The airline’s pilots are also pushing for deeper board involvement.

In a letter last week, the pilots’ union warned that American remains on an “underperforming path” marked by persistent operational, cultural and strategic shortcomings. The union requested that its president, Nick Silva, be allowed to formally present concerns to the full board.

According to correspondence reviewed by Reuters, Isom responded that he would meet with the union soon and that the board had discussed the request. However, union leaders said they have not yet received a direct response from directors and believe engagement at the board level is now “the necessary next step.”

Operational Strains Add to Tensions

Recent operational challenges have further fueled criticism.

A late-January winter storm triggered widespread flight cancellations, testing American’s recovery systems. Data from aviation analytics firm OAG showed the airline lagged Southwest, Alaska Airlines, United and Delta in on-time performance during January and posted the highest cancellation rate among those carriers.

Unions have cited those disruptions as evidence of broader execution issues.

Corporate governance experts note that while public calls for a CEO’s removal do not automatically result in leadership changes, sustained employee unrest can pose risks for customer-facing businesses.

“When your employees are unhappy working there, and you’re a customer-facing business, you’ve got a real problem,” said Charles Elson, a retired University of Delaware professor specializing in corporate governance.

As American seeks to reassure investors that its turnaround plan will narrow the profit gap, growing pressure from within may test both its leadership and its board’s willingness to intervene.