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Six unions urge changes at American Airlines amid weak financial performance

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Six unions urge changes at American Airlines amid weak financial performance
Policy
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Robert D. Isom, CEO and President | American Airlines

Six unions representing American Airlines employees have publicly criticized the company’s financial performance and called for greater management accountability. Union leaders met over Labor Day weekend to discuss their concerns about the airline’s lagging results compared to competitors, as well as strategies for increased coordination and improved employee benefits.

For more than a decade, American Airlines has reported weaker financial results than its main rivals, Delta Air Lines and United Airlines. In the most recent quarter, the airline achieved record revenue driven by domestic growth but saw its net income fall 16% year-over-year, while competitors posted stronger gains.

Union representatives from the Allied Pilots Association (APA), Association of Professional Flight Attendants (APFA), CWA-IBT Association, Professional Airline Flight Control Association (PAFCA), and TWU/IAM Association convened last week to address what they described as “peer-trailing financial performance,” lack of management transparency, and limited employee empowerment. These unions represent a wide range of American Airlines workers including pilots, cabin crew, gate agents, ground staff, and dispatchers.

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In a joint statement issued after their summit, union leaders said:

"This landmark union leadership summit reflects our unified commitment to protecting our members, improving working conditions, and securing a more prosperous future for us and for American Airlines while demanding increased management accountability. We are committed to maintaining a cohesive, coordinated labor coalition to address the opportunities and challenges ahead."

American Airlines has faced criticism for not keeping pace with Delta and United in upgrading premium products. The carrier has experienced high seat failure rates and inconsistent service quality. It has also implemented cost-cutting measures such as removing seatback screens from some aircraft. Meanwhile, Delta offers free WiFi and live TV on board.

Although American posted record second-quarter revenues due to its domestic strategy, it has been forced to compete with ultra-low-cost carriers like Frontier Airlines and Spirit Airlines. This competition has pressured margins even as rivals focus on premium markets with better returns. Additionally, American’s international expansion has lagged behind competitors—a segment that typically attracts higher-paying customers.

The introduction of new Flagship Suites on Boeing 787s this summer marked an upgrade in premium seating; however, broader fleet retrofits have been delayed. As a result, many passengers continue flying in older cabins that do not match current standards. In contrast, Delta and United have made significant investments in modernizing their fleets across all classes.

Customer satisfaction scores reflect these trends. According to J.D. Power’s latest study for Q1 2025, American trailed both Delta and United in First/Business class as well as Premium Economy categories; its regular economy product also scored lower than both competitors and the industry average.

With all six unions expressing solidarity in their call for change—an uncommon occurrence—American faces internal pressure for comprehensive management reform.

The airline operates as a full-service carrier with major hubs at airports including Charlotte Douglas International Airport, Chicago O’Hare International Airport, Dallas/Fort Worth International Airport, Los Angeles International Airport, Miami International Airport, New York JFK Airport, LaGuardia Airport, Philadelphia International Airport, and Phoenix Sky Harbor International Airport. Founded in 1926 under IATA code AA (ICAO: AAL), American is one of the largest airlines in the United States.

Organizations Included in this History
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