In recent weeks, we’ve seen the major US airlines report their Q2 2026 earnings. Obviously it’s an unusual time for the industry — while we’ve seen a huge spike in jet fuel prices, we’ve also seen airlines be able to charge higher fares (which they believe they can sustain).
In the United States, the story has largely been the same at most airlines — we’re seeing record revenue, while profits are down year-over-year. However, the extent to which profits are down differs massively. American is obviously the carrier among the “big three” that’s struggling the most, and it has just reported its financial results, including updated guidance. It’s all not very pretty.
In this post:
American “only” earns $71 million in its (historically) best quarter
When it comes to quarterly results, generally American’s best quarter is Q2, followed by Q4, followed by Q3, followed by Q1. That’s because Q2 covers spring and early summer travel (the peak summer travel period has moved forward), Q4 covers holiday travel, Q3 covers some summer and fall travel, and Q1 is… well, rough.
Obviously you’d expect some year-over-year changes at airlines, reflecting higher revenue but also higher costs. However, in general you’d hope that American is somewhat “tracking” its competitors, in terms of the percent changes year-over-year. In 2025, American’s annual profits plunged by 87%, and CEO Robert Isom promised significant upside.
So, how are things going now? American has just reported a net income of $71 million for Q2 2026, representing an 88% year-over-year decrease in net profit. As a point of comparison, Delta and United saw profits decrease by 25% and 17%, respectively.
Airline | Q2 2025 net income | Q2 2026 net income | Percent change |
|---|---|---|---|
American | $599 million | $71 million | −88.1% |
Delta | $2.13 billion | ~$1.60 billion | −24.9% |
United | $973 million | $805 million | −17.3% |
Now, to be thorough, let’s also compare Q1 2026 results compared to the previous year (keep in mind Q1 2025 was really rough due to the tariff situation, so all airlines saw a profit increase over that period).
Airline | Q1 2025 net income | Q1 2026 net income | Percent change |
|---|---|---|---|
American | -$473 million | -$382 million | +19.2% |
Delta | $240 million | $570 million | +137.5% |
United | $387 million | $973 million | +151.4% |
It seems unlikely American will make money in 2026
American lost $382 million in the first quarter, and earned $71 million in the second quarter, so for the first half of the year, we’re at a loss of $311 million, with the company’s historically best quarter behind it.
For context, in Q3 2025 American had a net income of -$114 million, and in Q4 2025 it had a net income of $99 million. At this point, it seems highly unlikely that American will turn a profit in 2026.
American has also updated its full year 2026 guidance, and now expects earnings per share of -$0.65 to $0.65. That contrasts to the previous guidance of -$0.40 to $1.10. And keep in mind American’s initial guidance for 2026 was $1.70 to $2.70.
For context, Delta has maintained the same guidance throughout, of $6.50 to $7.50 per share. Meanwhile United’s guidance has gone from $12 to $14 per share, to $9 to $11 per share.
But worry not, folks, American CEO Robert Isom is “excited about the remainder of 2026,” brags about how the carrier’s “performance reflects the strength of [its] commercial strategy,” and thanks the team “for their outstanding execution on [their] commercial and operational objectives during the quarter.”
The concept of American turning a profit this year seems like a pipe dream at this point, and must be based on assuming that oil prices crash, while the airline can maintain pricing power.
Bottom line
Admittedly no one expects that a turnaround will happen overnight, but American is continuing to lose ground to competitors when it comes to financial results, rather than narrowing the gap. The company had profits in Q2 decrease by 88%, and that’s historically American’s best quarter. Combined with the $382 million loss in the first quarter, it’s hard to imagine a world in which the airline will turn a profit this year.
As always, one can’t help but be reminded of how in 2017, former American CEO Doug Parker said that the airline would never lose money again, and even in a bad year, the airline should earn around $3 billion in profits. That sure didn’t age well, did it?
One can’t help but wonder how much longer the board will just sit on the sidelines as more and more ground is lost…
What do you make of American’s financial results, and how do you see this playing out?
Lifetime EXP here closing in on 6MM on AA. Back in 2024, I flew more than 250k Loyalty Points worth on AA and received 6 Systemwide Upgrades for it. Turns out that I wasn't able to use any of them and American really managed to just let them all expire. The final kicker for me was that in December of 2025, I was waitlisted for an SWU from LHR to LAX and while the upgrade...
Lifetime EXP here closing in on 6MM on AA. Back in 2024, I flew more than 250k Loyalty Points worth on AA and received 6 Systemwide Upgrades for it. Turns out that I wasn't able to use any of them and American really managed to just let them all expire. The final kicker for me was that in December of 2025, I was waitlisted for an SWU from LHR to LAX and while the upgrade still hadn't cleared on the morning of the flight, they were offering a paid upgrade for as little as $600. I paid for the upgrade. So that gives you an idea of what these SWUs are actually worth - AA is willing to let anyone without status upgrade for an extra $600 rather than keeping a loyal customer with expiring SWUs who has been an EXP ever since they introduced the status level.
After coming home, I wrote a letter to Isom. I promptly got a call from an executive assistant who said that in return for my 6 expiring SWUs, they would put 2 Flagship Lounge certificates in my account. Yeah, as if I ever needed a Flagship Lounge access being an EXP. I only fly internationally. The whole experience with the "executive office" was so absurd that I lost the last remaining faith in AA. The person on the phone was simultaneously pompous and clueless.
I just made Diamond on Delta. I have flown AA codeshares on Finnair a few times this year because Helsinki is tops for transfers in Europe, but won't be stepping onto AA metal. I will probably be spending more than $40,000 on Delta tickets this year that in any other scenario would have gone to AA. Isom has managed to destroy all the loyalty that his predecessors had built up over a period of 30 years. It's become totally transactional, and they think people haven't noticed.
Maybe Robbie can learn a think from his more successful Asian counterparts: take a paycut.
Also, when was the last time anyone flying a US3 go 'hmm, that FA is very attractive' compared to their Asian or ME3 counterparts. The US3 really should start looking at how the airlines are represented.
Yeah, I’m sure a series of massive unfair hiring lawsuits will help the bottom line tremendously.
as much as some people want to discuss personalities instead of deal w/ the real facts of the industry, AA is living on increasingly borrowed time. Industry analysts are becoming increasingly impatient at the inability of AA mgmt to turn the company around. While the vast majority of customers do not care about the financials of a company or the drama in the C Suite, no company can deliver at top level for customers if...
as much as some people want to discuss personalities instead of deal w/ the real facts of the industry, AA is living on increasingly borrowed time. Industry analysts are becoming increasingly impatient at the inability of AA mgmt to turn the company around. While the vast majority of customers do not care about the financials of a company or the drama in the C Suite, no company can deliver at top level for customers if it can't address its long-term financial future.
AA might have come up w/ a viable strategy in recognizing it needs to have a more premium strategy but the airline industry is full of pitfalls and challenges; high fuel prices will define 2026 and US airlines only got large fare increases because of that high fuel.
Those that call for the ouster of AA senior execs don't realize how structurally disadvantaged AA is. They alienated corporate clients and while they are winning some of them back, they have lost so much share in the biggest corporate travel market to DL in NYC and LAX and UA in ORD that they can't compete near as effectively for high value revenue and can't get that high value revenue back until they have a more robust network.
AA's ELP strategy - like UA's international strategy - was built around becoming so large that nobody else could win and yet the competition has proven that both of those strategies are flawed.
Analysts on AA's earning call asked why AA continues to poor capacity into its network when they can't deliver decent profits with the capacity they have. The answer is that AA has a cost problem and has had one for a quarter century so their answer is to keep adding capacity because they can't get the costs out.
The US airline industry will continue to contract amid high labor and fuel costs; B6 is reportedly inviting its bond investors to a discussion about its strategies, something that many companies do but the mere fact that B6 specifically invited bondholders highlights that they are likely struggling to pay their debt.
AA is not far behind and people don't realize how difficult AA has in competing w/ such high debt levels and lower revenue.
UA's "blanket the world" international strategy does not deliver profits as well as DL's more focused international strategy does but UA also has too much invested in its strategy that it can't back down even as it tries but so far is failing to gain domestic size comparable to its overall network.
WN is slowly fixing its revenue problems but still can't fully monetize its new products and services even it clearly intends to transition even more to being a full service legacy-like carrier. WN's greatest overlap is with AA and UA so whatever WN does is going to most significantly impact those two.
this was a pivotal week for the airline industry and it simply shows that most of the US airline industry is not viable at current fuel prices and the strategies that most of the industry including AA are, at best, treading water rather than fixing structural problems.
let's be honest. You got owned by Max in this thread. Your usual derangement with him showed like it always does.
I'm fascinated by Tim Dunn, reactions to him, and how that develops a persona within online communities. The reality is that Tim Dunn makes some good points and, well, often poor points. But that doesn't matter. The reality is that any of his good points are lost to the audience as his incessant defense of one argument instead of a healthy conversation to all arguments mires his viewpoint as somewhat deranged in the eyes of...
I'm fascinated by Tim Dunn, reactions to him, and how that develops a persona within online communities. The reality is that Tim Dunn makes some good points and, well, often poor points. But that doesn't matter. The reality is that any of his good points are lost to the audience as his incessant defense of one argument instead of a healthy conversation to all arguments mires his viewpoint as somewhat deranged in the eyes of most everyone. It's like Trump. Who cares about his opinions anymore? Sure, some might be justified, but they are hidden by deranged rants that offer nothing towards a conversation.
Tim Dunn: You make points, some reasonable. But wow, you are really bad at holding an audience and selling it. You just come across as a charlatan and lunatic as a result. Try humility and balance?
Careful, if you state facts and point out how equally deranged his reply guys are, you'll get called out with equal levels of vitriol and insanity.
It's generated a cult of personality, and it's not healthy. Some of these people stalk his responses across countless other blogs.
Here we go with the fake guest profile responses from Tim and Yolo...
you can't accept that not everyone is filled w/ vile and hatred like you are.
the topic is AA and how poorly run the company is.
Vile and hatred? awww. somebody that wants to debate just the facts but hates when they're brought up...
ok, Tim and Julie.
Enjoy the night. You both have severe mental issues and Tim, it's amusing how you create fake profiles then reply to them to create a fanbase but you fool no one. The only amusement is how your "Julie" only shows up when you're posting.
Max, you claim to care about facts and rejecting false claims. Yet it is a definitive fact that you are obsessed with replying to Tim and all things Tim related.
The fact that I pre-empted your entire crash out proves how predictably deranged you are when it comes to Tim.
Accusing someone of being a fake account for telling the truth shows you really have nothing to refute what we're saying.
all anyone has to do is debate the actual facts.
When there are people that harp over a 1% difference in cancellation rates and then ignore a $1.6 billion difference in profit, then I will push and push and keep pushing.
yes, it is over the top on all sides but I am not about to unilaterally disarm.
...because more than 1% difference in cancellation rates is small, and less than 1/3 of a percentage difference in baggage mishandling rates is big...
... at least in Tim Dunn logic...
Antwerp (or Aero, or whatever names you wanna use), by all means, please do continue to provide this enlightening meta-commentary (I do, too, sometimes; how fun!). Yet, while you pretend to promote a 'a healthy conversation to all arguments,' I haven't forgotten that you also directly and indirectly call for others (such as myself, recently) to 'self-censor.' Sowie, not gonna happen. It's Ben (or Gary, or Matt, or Brett, or Greg, or William, or whoever's...
Antwerp (or Aero, or whatever names you wanna use), by all means, please do continue to provide this enlightening meta-commentary (I do, too, sometimes; how fun!). Yet, while you pretend to promote a 'a healthy conversation to all arguments,' I haven't forgotten that you also directly and indirectly call for others (such as myself, recently) to 'self-censor.' Sowie, not gonna happen. It's Ben (or Gary, or Matt, or Brett, or Greg, or William, or whoever's site); they tend not to micro-manage, but if there's a real problem, they handle it. So, ultimately, the answer to speech you don't like is more speech. Engage or ignore. You do you.
AA and DL generated almost identical amounts of domestic revenue in the most recent quarter but DL does it with fewer flights - because of larger aircraft - and on fewer seat miles - because DL gets more revenue per seat mile.
DL also has tens of thousands fewer employees even when adjusted for wholly owned carriers.
UA's domestic network - like DL's is heavily skewed to large markets but UA still has...
AA and DL generated almost identical amounts of domestic revenue in the most recent quarter but DL does it with fewer flights - because of larger aircraft - and on fewer seat miles - because DL gets more revenue per seat mile.
DL also has tens of thousands fewer employees even when adjusted for wholly owned carriers.
UA's domestic network - like DL's is heavily skewed to large markets but UA still has scores more inefficient large RJs than DL has.
AA's El Paso strategy of blanketing the country from scores of medium and small cities with service to multiple hubs is inefficient and unprofitable.
It will take forever to undo it - and AA doesn't have that much time.
Well, I mean, the ‘fewer flights’ thing might’ve been because of all the cancellations and pilot scheduling issues, but, point taken. RASM!
oh Tim...
AA has so many issues... but you truly have no idea what you're talking about and you just love to broadcast your ignorance.
Do you have the ability to talk about a topic without bringing up Delta? I doubt it. Reading some of your comments below it's truly amazing how ignorant you are but how much you love to post
dumb sh*9.
they made almost identical amounts of domestic revenue.
Of course you don't want to compare the fact as to how that happened.
No, you cling to the fact that AA has an alliance relationship with AS that you HOPE makes up for all of its strategic misteps in Chicago, New York and Los Angeles that are part of why DL and UA are so much stronger.
and how much better DL's hubs at...
dumb sh*9.
they made almost identical amounts of domestic revenue.
Of course you don't want to compare the fact as to how that happened.
No, you cling to the fact that AA has an alliance relationship with AS that you HOPE makes up for all of its strategic misteps in Chicago, New York and Los Angeles that are part of why DL and UA are so much stronger.
and how much better DL's hubs at ATL, DTW, MSP and SLC are in cost efficiency than AA's interior US hubs of CLT, DFW, PHX and ORD are.
Damn straight we are making comparisons.
If you don't want to read them, then go sing in a phone booth and ignore reality - we sure know you have no interest in touching the grass
"and how much better DL's hubs at ATL, DTW, MSP and SLC are in cost efficiency than AA's interior US hubs of CLT, DFW, PHX and ORD are."
are you asking why monopoly hubs in an MSA make more money than non-monopoly hubs in an MSA? I don't know why, but I didn't think you were this dumb ;)
I'm not asking, Max.
WTH did AA and UA do for the past 48 years of deregulation to not figure out that putting hubs in single airport metros allowed an airline to better command the market than a carrier that touts the size of the metros from which it operates - with other airlines larger in other airports in the same metro?
even BOS and SEA - DL's expansion hubs where other airlines were/are stronger...
I'm not asking, Max.
WTH did AA and UA do for the past 48 years of deregulation to not figure out that putting hubs in single airport metros allowed an airline to better command the market than a carrier that touts the size of the metros from which it operates - with other airlines larger in other airports in the same metro?
even BOS and SEA - DL's expansion hubs where other airlines were/are stronger are effectively single airport metros.
AUS is a single airport metro.
CLT and PHL are single airport metros but have horrid facilities.
argue all night... I am sure you will... but DL figured out what it takes to succeed and it is to dominate your markets and to do it more efficiently than your competitors.
Do you honestly think that Amazon sat down w/ WalMart and thought about how to divide up the online shopping/home delivery market?
The only mental midget here is you.
LTD says, "AA and DL generated almost identical amounts of domestic revenue in the most recent quarter but DL does it with fewer flights - because of larger aircraft - and on fewer seat miles - because DL gets more revenue per seat mile."
Almost the exact opposite argument tiny Tim makes regarding DL in NYC and LGA having the most (RJs < 1,500 mile) flights. You can't make this stuff up, but LTD sure can.
Tim, I'm starting to think Max and rebel may be goading you. Hard to tell...
American’s scope clause with their pilots has failed to benefit either their pilots or the company. AA was so intent on screwing their pilots that they didn’t realize, and still don’t realize that they screwed themselves by continuing to expand their convoluted regional jet operations.
part of AA's need for better scope is because they have way too many hubs on the east coast which means their hubs compete for connecting traffic with each other.
They needed to close a hub or two so they could increase gauge but they haven''t done so.
AA at DFW has as many - maybe now more - flights than DL at ATL but carries far fewer passengers because AA uses so many RJs while DL at ATL is 90% mainline.
"AA at DFW has as many - maybe now more - flights than DL at ATL but carries far fewer passengers because AA uses so many RJs while DL at ATL is 90% mainline."
even mighty ATL Delta didn't start at so high a percent of mainline. Not to fear, dear Tim, the writing is already on the wall for ATL to lose its crown for passengers per year or perhaps you need a few...
"AA at DFW has as many - maybe now more - flights than DL at ATL but carries far fewer passengers because AA uses so many RJs while DL at ATL is 90% mainline."
even mighty ATL Delta didn't start at so high a percent of mainline. Not to fear, dear Tim, the writing is already on the wall for ATL to lose its crown for passengers per year or perhaps you need a few construction links? You think AA needs to keep DFW at the current percentage? Take a look at past vs current regional percentages. You'll learn a lot. It's the same history as ATL a few years ago.
"part of AA's need for better scope is because they have way too many hubs on the east coast which means their hubs compete for connecting traffic with each other."
Which hub would you close, Tim?
LGA and JFK that are primarily O&D for AA and serve the need to serve NYC?
DCA? You'd be an idiot to say yes to this?
Perhaps CLT which actually does connect passengers as a primary focus unlike the two above?
Maybe MIA which is the best Latin hub possible?
But maybe you mean PHL? Which is their Atlantic gateway for connecting and JFK simply can't replicate due to lack of slots.
The East Coast is, by far, the most populous part of the US and most AA hubs are O&D focused or serve a unique purpose like MIA that nothing can supplant. There are two that are connection hubs, only two.
Your ignorance is just astounding and it's comments like this that just prove it.
If AA left MIA and DCA for some unknown reason, Delta would swoop in asap then also have 5 East Coast hubs and you'd be busy heaping praise on Delta for so many East Coast hubs.
This kind of idiotic commenting is why you need to take a step back, think about what you say, then realize why others find you incredibly ignorant.
AA at DFW will never reach the level of passengers that DL has at ATL until AA gets rid of hundreds of RJs and closes a hub or two.
Their network simply does not support the amount of mainline connecting traffic to as many hubs in the eastern US as AA has.
It's AA mgmt's job to figure out what needs to go; the markets might decide and DL just might keep beating away at both AA and B6 in NYC no matter how many times AA comes back for another bruising.
"AA at DFW will never reach the level of passengers that DL has at ATL until AA gets rid of hundreds of RJs and closes a hub or two."
perhaps so... ignorant dogmatic statements are your domain. But ATL has no new gates coming. DFW has an entire new terminal and new piers. But cling to what you want.
I'm not defending AA management but sometimes you just say really stupid things. there's nothing preventing...
"AA at DFW will never reach the level of passengers that DL has at ATL until AA gets rid of hundreds of RJs and closes a hub or two."
perhaps so... ignorant dogmatic statements are your domain. But ATL has no new gates coming. DFW has an entire new terminal and new piers. But cling to what you want.
I'm not defending AA management but sometimes you just say really stupid things. there's nothing preventing up gauging at DFW. and like I said, Atl did not start at the current level of mainline percent.
Where's Julie? Did you get tired of logging out?
The problem AA has at DFW is that they are too big. Perhaps Delta could do better but AA cannot manage DFW when there is convective activity affecting the airport or if there is any type of winter weather at the airport. During major weather events it can take up to a week or more to return to normal operations. Opening terminal F is only going to make it worse.
Why are you rejoicing?
“And you’ve been CEO of how many airlines?”
(Original quote by DesertGhost.)
Hmmm.......Industry is so cyclical and most importantly, airlines like AAL have been totally mismanaged and yet the repetitiveness continues. AAL BOD is obtuse this and the next bankruptcy for AAL will most likely occur in the near future.
Ben, Is anyone going to fix the incorrect net income data?
No tvs no customers. It's that simple.
Legitimately it's pretty eye-opening to see people who fly AA regularly get on a plane with personal TVs and see how their perception of the airline changes
I’ve been saying this for a while, and then the anti-IFE/AVOD mafia comes out… just you wait. (‘Premium’ airlines have seat screens; LLCs do BYOD.)
Do you ever fly Southwest?
FlyerDon, yessir, got a flight coming up with them, too. Sure sucks that they’ve unbundled fares, added fees for seat selection, etc. (I would gripe about checked bag fees, but I do carry-on only.)
The puzzling thing is how Isom still has a job. Although, in a sense not puzzling at all given the Board has demonstrated over the past couple of decades they are there to collect their retainer and get flying privileges.
Conditions are obviously not favorable for the industry right now, but you can count on AA to underdeliver vs the competition in any environment. Sad.
Actually, it's very easy to run an airline. You just look at what American Airlines is doing and do the exact opposite. Your airline would just thrive and thrive and thrive some more.
AA has many challenges ahead with zero instant relief. Decisions of the past have come back to bite them. Thinking Spirit was their main competitor last decade was a mistake. They shed customers like crazy. To focus only on domestic routes in a time of exploding travel was a mistake. Not pushing credit cards big time is another mistake.
Lets not forget that AA is famous for being late.
AA has in excess what UA wishes it had - a domestic system that touches nearly every viable airport in the US.
But AA serves the domestic market very inefficiently; most of its domestic flights are on regional jets.
AA's excess in overserving domestic markets is very similar to UA's overserving of the international market.
Excess size just means higher costs and lower revenues for the last 10-15% of capacity.
@ Tim:
"AA has in excess what UA wishes it had - a domestic system that touches nearly every viable airport in the US."
Domestic airport network, as of June 2026 schedules:
American Airlines: Serves 234 domestic destinations.
United Airlines: Serves 238 domestic destinations.
Delta Air Lines: Serves 213 domestic destinations.
now compare revenues, ASMs, and profits.
UA's domestic network doesn't have anywhere the DENSITY (not density altitude but the number of seats per city) that AA and esp. DL has.
it's a shame that you as a pilot can't figure out that sheer size doesn't matter; it's performance w/ the assets you have.
If you want to fly fast and far, you don't choose an E175, you choose a, say A350.
If...
now compare revenues, ASMs, and profits.
UA's domestic network doesn't have anywhere the DENSITY (not density altitude but the number of seats per city) that AA and esp. DL has.
it's a shame that you as a pilot can't figure out that sheer size doesn't matter; it's performance w/ the assets you have.
If you want to fly fast and far, you don't choose an E175, you choose a, say A350.
If you want to do what an A350 can't do, you choose an F22; not near as large but can do a whole lot more.
tell me, Paul, have you been a military aviator?
22 new IAH & 14 new IAD gates this year, not sometime in the 2030s. ;)
you must be related to Paul.
UA ALREADY has a substantial size lead over every other airline on the planet but they can't manage to turn it into higher revenue and profits.
new gates at IAH and IAD aren't going to solve UA's problems.
btw, I am sure you have read the news that Leeham - usually pretty reliable = says UA is interested in about 20 early build 777Xs. that would be the ultimate...
you must be related to Paul.
UA ALREADY has a substantial size lead over every other airline on the planet but they can't manage to turn it into higher revenue and profits.
new gates at IAH and IAD aren't going to solve UA's problems.
btw, I am sure you have read the news that Leeham - usually pretty reliable = says UA is interested in about 20 early build 777Xs. that would be the ultimate just get bigger solution for UA's fleet - without solving the fact that UA clearly has lots of dead wood in its network or wouldn't make so much less than DL.
Jeez, Tim. I didn't compare revenues, ASMs, profits - BECAUSE YOU DIDN'T in your original assertion. Why is that so hard for you to always get? You get challenged by anyone, and you add qualifiers to your assertions that were not in your original argument. Are you off your meds?
Here's how this always seems to go down:
Tim: *(posts assertion as if it's an established fact)
Anyone else: *(posts data refuting Tim's assertion)
Jeez, Tim. I didn't compare revenues, ASMs, profits - BECAUSE YOU DIDN'T in your original assertion. Why is that so hard for you to always get? You get challenged by anyone, and you add qualifiers to your assertions that were not in your original argument. Are you off your meds?
Here's how this always seems to go down:
Tim: *(posts assertion as if it's an established fact)
Anyone else: *(posts data refuting Tim's assertion)
Tim: "What about {financial measurement unrelated to the original assertion]?!?"
Here's more of your follow-up: "it's a shame that you as a pilot can't figure out that sheer size doesn't matter"
YOU are the one that said, "AA has in excess what UA wishes it had - a domestic system that touches nearly every viable airport in the US." Then I provided data that shows that United is actually flying to four MORE domestic airports than American is. So I showed everyone that (yet again) you were wrong. YOU said NOTHING about "size" i.e. type of airplane flown, frequency of flights, number of hubs served by the airports - you simply said a "domestic system that TOUCHES nearly every viable airport" and I showed you United actually "touches" MORE airports. YOU WERE WRONG with what you posted. How can you not get that?
Besides - if I HAD included "size" in the argument... (wait for it...) the data currently shows American relies on regional jets for a HIGHER percentage of their domestic network capacity than United - so United WOULD win in the "what about size?" debate over American. Proof? "Trust buy Verify"... AI says that American relies on RJs for 20% - 25% of their domestic capacity, while United relies on RJs for only 10% of their domestic capacity.
Typical "Tim Pivot" - I'm so glad we cannot edit posts, because everyone can see how you get proven wrong, time and time again, on your claims. I'm honestly surprised you didn't include "what about free Wifi?" too.
Finally - here's how you answer other posts. You said, "tell me, Paul, have you been a military aviator?". Now I'll directly address it, with no pivot. "No. I have not."
See how easy that was? You should try it some time!
@pilot Paul
You're technically right, but it ignores what's actually bookable on AA.com for any AA customer since there's an entire other OneWorld airline (and very strong AA partner) that covers the only area of the US where AA is weak and also makes OneWorld the largest alliance on the West Coast on every metric, by far, even ASMs where UA gets a lot of bonus points for the "M" in ASMs. There truly...
@pilot Paul
You're technically right, but it ignores what's actually bookable on AA.com for any AA customer since there's an entire other OneWorld airline (and very strong AA partner) that covers the only area of the US where AA is weak and also makes OneWorld the largest alliance on the West Coast on every metric, by far, even ASMs where UA gets a lot of bonus points for the "M" in ASMs. There truly is no other US airline booking platform or loyalty program that can take you more domestic places... aside from Alaska for the same reason.
So while Tim Dunn and I don't agree too often, he is right that AA has a domestic system that touches nearly every viable airport in the 50 States, far more than United.
The miracle of all this is how such a combined network is used so poorly and unprofitably by AA.
And on the bright side for everyone, whenever I mention the combined AA and AS network, that usually unites everyone against me. ;)
No worries, Max. Tim didn't try to compare "OneWorld" vs. "Star Alliance" so I'm holding him to his assertion - American (only) vs. United (only).
I'm also surprised the traditional "Tim Pivots" answer he provided didn't go with that spin (alliance airports). That's what he usually does - make some assertion, gets refuted, then adds a qualifier not in his original argument to try to claim he was actually right. Or he adds something else...
No worries, Max. Tim didn't try to compare "OneWorld" vs. "Star Alliance" so I'm holding him to his assertion - American (only) vs. United (only).
I'm also surprised the traditional "Tim Pivots" answer he provided didn't go with that spin (alliance airports). That's what he usually does - make some assertion, gets refuted, then adds a qualifier not in his original argument to try to claim he was actually right. Or he adds something else completely unrelated (like financials). Or he does both.
Next time everyone gangs up on you, I'll come to your defense.
Max and I don't agree on a lot as he noted but he is correct.
and even before considering the number of airports, it is also about the amount of domestic service that AA has on its own mainline or controlled RJ fleet, it is also very clear that AA can't turn its huge domestic size into a profit advantage just like UA can't do it internationally.
DL clearly has decided it is not worth...
Max and I don't agree on a lot as he noted but he is correct.
and even before considering the number of airports, it is also about the amount of domestic service that AA has on its own mainline or controlled RJ fleet, it is also very clear that AA can't turn its huge domestic size into a profit advantage just like UA can't do it internationally.
DL clearly has decided it is not worth chasing the last 5% of the market and has the profits to show for it.
AA and DL are right with each other in domestic revenue - AA was a half percent larger in 2Q2026 - but DL carries a lot more local traffic from major markets like NYC and BOS that require less connections = and thus lower costs.
Both AA and DL carry 12% more domestic revenue than UA and a few gates at IAH or IAD aren't going to fix that.
DL is large enough to carry the most corporate traffic and carries the most domestic mainline traffic.
The same principle applies internationally esp. over the Atlantic. DL has nearly all of the capacity that UA has to Europe but doesn't chase the last few percentage - and earns more.
DL's opportunity over the Pacific is that it is half the size of UA and doesn't serve a number of major cities (although the list is quickly shrinking); they are not going to have the number of flights that UA has but they will use more efficient and larger aircraft.
Size is simply not the advantage that you desperately want to believe it is.
DL has the most balanced network of the big 3 - on top of the cost reduction of the refinery and the extra revenue from Amex and Delta Tech Ops that AA and UA can't match.
AA's real competition is UA and UA's earnings put it about halfway between AA and DL.
Only Tim can argue that "Size Doesn't Matter!" in a thread that started with Tim's post that argued, "Size Matters!'
Last post by Tim: "Size is simply not the advantage that you desperately want to believe it is"
Tim's first post: "AA has in excess what UA wishes it had - a domestic system that touches nearly every viable airport in the US."
Yet another lesson brought to you by the Tim Dunn School of Logic and Reasoning (c)
just because you can't comprehend what was said because your bias blinds you from reality doesn't mean that I have it wrong.
I said "AA has IN EXCESS what UA wishes it had..."
BOTH are fixated on size in their own arenas. and yet neither can turn it into a financial advantage.
You and your ilk that a person buying a ticket cares about how big a company is while dismissing their interest...
just because you can't comprehend what was said because your bias blinds you from reality doesn't mean that I have it wrong.
I said "AA has IN EXCESS what UA wishes it had..."
BOTH are fixated on size in their own arenas. and yet neither can turn it into a financial advantage.
You and your ilk that a person buying a ticket cares about how big a company is while dismissing their interest in financial performance.
Nobody cares how many more flights AA has in the US domestic marketplace than DL.
They MIGHT care if AA has more flight operations BETWEEN THE TWO CITIES they want to travel between but they could care less about the rest of AA's network.
Your flawed logic should never be seen by someone that claims to be a pilot certified by the FAA.
You forgot to tell us about your military background and if you would really rather fly a massive bus - even if it is technologically advanced - compared to a high performance aircraft.
I doubt if many pilots, given a choice would rather fly an airliner.
Now a lesson from the Tim Dunn School of Reading and Comprehension Skills (c):
*********
Tim says about me, "You forgot to tell us about your military background and if you would really rather fly a massive bus - even if it is technologically advanced - compared to a high performance aircraft."
Look a few posts back, Tim (time stamped Pilot Paul Guest July 23, 2026, 5:00 pm):
I wrote in that post:
Finally -...
Now a lesson from the Tim Dunn School of Reading and Comprehension Skills (c):
*********
Tim says about me, "You forgot to tell us about your military background and if you would really rather fly a massive bus - even if it is technologically advanced - compared to a high performance aircraft."
Look a few posts back, Tim (time stamped Pilot Paul Guest July 23, 2026, 5:00 pm):
I wrote in that post:
Finally - here's how you answer other posts. You said, "tell me, Paul, have you been a military aviator?". Now I'll directly address it, with no pivot. "No. I have not."
See how easy that was? You should try it some time!
***************
Do you not read posts before you respond, or do you not understand them? Got to be one or the other, I guess.
Now, I'll read yours, again. You just said in your last one:
(Tim:) I said "AA has IN EXCESS what UA wishes it had..." (now, continuing from an earlier post) "...a domestic system that touches nearly every viable airport in the US."
I think most people would conclude that you are asserting that American "touches more airports" ("in excess") of how many United wishes it touches. Meaning, you believe American provides service to more airports than United (American did just announce service to Venice, FL - only airline that will serve there, for example). So maybe your assertion is true? I know better than to just take you at your word. So, I looked it up. Turns out it's not true, and I posted the data to show you that.
You either need to be more accurate with your facts, or better with your language skills. And maybe read all of others posts before responding to them.
Tim, even with so many of your loopy posts, you really went off the rails here. Why on earth would you question whether Paul was in the military and then question the careers of airline pilots around the world. Then, after he directly answers your question, you say he didn’t answer it.
I know this will never happen, but you owe Paul an apology.
As you said, DL profits are the result of...
Tim, even with so many of your loopy posts, you really went off the rails here. Why on earth would you question whether Paul was in the military and then question the careers of airline pilots around the world. Then, after he directly answers your question, you say he didn’t answer it.
I know this will never happen, but you owe Paul an apology.
As you said, DL profits are the result of fortress hubs, credit card revenue, and the refinery. Not because people pay more to fly DL. Otherwise, DL would serve more than a paltry five cities in Asia and they wouldn’t have closed so many stations/routes while being unable to make a dent in SEA against AS or in Asia against UA.
Speaking of, did you listen to the latest episode of The AirShow? They discuss DL’s missteps in Asia, how they’re playing a major game of catch-up against UA’s ever-increasing lead, how DL can’t decide whether SEA or LAX should be their TPAC gateway, how the DL planes are so big they’re really suited for big trunk routes but not for opening stations, how they spent too long focusing on transferring pax through ICN the same way they focused on transferring pax through NRT, how UA’s SFO hub is the crown jewel of TPAC hubs, how neither LAX nor SEA are big enough domestic operations to feed large international networks, and how SEA’s SLA PRASM is 15% below the DL average.
I’m sure there’s more but it’s an interesting listen. You’ll love it. lol
LTD says, “DL is clearly in a league of its own and will likely report over 60% of industry profits for 2026”
Completely incorrect (no surprise). Nice try though.
2026 profit (net income)
UAL: $1.5b
DAL: $1.3b
Also, the 88% decline headline is complete clickbait BS, a combination of a tough YOY comp for AA and very high fuel prices.
Correction: I misread LTD’s post. I thought he was saying currently. My bad.
yes, you are triggered to defend UA.
see below.
no other airline is delivering anywhere near the profits that DL is.... call it the refinery, Amex or whatever you want to "blame" DL's performance on but they are indeed in a league of their own.
and the 88% decline comes right off of AAL's net income from their earnings release. Ben didn't make anything up.
Sadly I guess I agree a bit with you because you continually post so much absurd disinformation that my expectations of your nonsense couldn’t be any lower. Someone has to correct it, and I have to admit your insanity/arrogance amuses/intrigues me.
this is not disinformation
"no other airline is delivering anywhere near the profits that DL is.."
it is simply a fact that you are incapable of admitting is true
UAL profits exceed DAL’s in 2026.
rebel… you still doin’ that Econ 101?
he desperately grabs to avoid admitting that UA is the SECOND most profitable airline.
poor underendowed child.
Tim, did you see that DL’s TPAC yields only increased 7% on an 8% increase in capacity, while UA’s TPAC yields increased 10.9% on a 4% increase in capacity?
Yes, as you said, we can call DL’s Q2 profits refinery, fortress hubs, and credit card revenue. But certainly not because people pay more to fly DL. Otherwise these LAX-HKG and SEA-TPE routes wouldn’t be such a drag on DL’s performance.
Otherwise SEA SLA revenue...
Tim, did you see that DL’s TPAC yields only increased 7% on an 8% increase in capacity, while UA’s TPAC yields increased 10.9% on a 4% increase in capacity?
Yes, as you said, we can call DL’s Q2 profits refinery, fortress hubs, and credit card revenue. But certainly not because people pay more to fly DL. Otherwise these LAX-HKG and SEA-TPE routes wouldn’t be such a drag on DL’s performance.
Otherwise SEA SLA revenue wouldn’t be lagging the DL average by 15%, the worst performing DL hub. DL can’t even get much past 20% share in SEA, even with only one other airline there.
DL does well dominating fortress hubs, not making a dent in SEA against AS and certainly not making a dent in Asia against UA.
the real significance of AA's report is that the big 4 plus AS have reported and there are plenty of indications that 2026 will be a bad year for the US airline industry and the signs of a turnaround in 2027 are just not there.
DL is clearly in a league of its own and will likely report over 60% of industry profits for 2026 up from over 50% last year. As much as its...
the real significance of AA's report is that the big 4 plus AS have reported and there are plenty of indications that 2026 will be a bad year for the US airline industry and the signs of a turnaround in 2027 are just not there.
DL is clearly in a league of its own and will likely report over 60% of industry profits for 2026 up from over 50% last year. As much as its fans want to believe otherwise, UA is middle of the pack between DL and AA in financial performance while AA continues to just skim above the water.
WN is SLOWLY turning things around but they are not anywhere close to where they used to be. AS is losing money and taking on debt while B6 is a basketcase waiting to implode. F9 is not viable long term and Allegiant is too small to matter.
All the industry did in 2Q2026 did was cover a part of the increased cost of fuel; airlines that made good money last year continue to do so in a much heightened fuel cost environment while those like AA that were not more than barely profitable are in the same position.
as much as some people hate to talk about financials, Ben is right to that about them because the future of the industry is on the line. A percent or two in ontime or rankings in baggage handling don't matter in light of financial performance.
Most of the capacity in the US industry is not viable longterm. Change will be coming.
specifically, AA is little more than a jobs program and a good customer for a lot of banks. It has no value as a company.
LTD says, “DL is clearly in a league of its own”
United is more than keeping pace while improving and growing at a much faster pace than Delta. It’s just a matter of time.
In 2026 United's:
$200m > DL in net income
$2.3b > DL in cash flow
$1.8b > DL in free cash flow
+ 56 net aircraft vs +15 for DL
– $263m net debt vs +...
LTD says, “DL is clearly in a league of its own”
United is more than keeping pace while improving and growing at a much faster pace than Delta. It’s just a matter of time.
In 2026 United's:
$200m > DL in net income
$2.3b > DL in cash flow
$1.8b > DL in free cash flow
+ 56 net aircraft vs +15 for DL
– $263m net debt vs + $51m net debt for DL in Q2
UA & DL both around 2x net leverage
UA & DL average fleet age both 15.1 years
Fleet size 2016/2026:
UA: 737/1,122 +385/52%
AA: 930/1,030 +100/11%
DL: 832/1,004 +172/21%
US domestic mainline market share (passengers) 2016/2025
DL: 16.4%/17.8%, +9%
AA: 17.2%/17.3%, +1%
SW:18.2%/16.9%, -7%
UA: 13.0%/16.6%, +28%
Q1 2026: Net Income/OCF/Capex/FCF in $b
DL: 1.6/1.6/1.4/0.2
UA: 0.8/1.6/1.3/0.3
1st Half 2026: Net Income/OCF/Capex/FCF in $b
UAL: 1.5/6.4/3.2/3.2
DAL: 1.3/4.1/2.7/1.4
Since 1/1/22: OCF/Capex/FCF in $b (net aircraft added)
UAL: 35.7/25.3/10.4 (+296 aircraft)
DAL: 31.6/22.2/9.4 (+188 aircraft)
AAL: 17.3/12.4/4.9
SWA: 9.5/12.7/-3.2
UA made just 2/3 of what DL made in 2025 and half of what DL made in the 2nd quarter
UA's net income in 1Q2026 was inflated because of sale-leaseback transactions while DL's was depressed in the same period because of equity investment reassessments.
UA is not in DL's league no matter how much you want to believe otherwise.
@Tim Dunn: Keep arguing Delta's financials. That's what you always seem to focus on. You do always pick the best to highlight, which is fine. Because, once again, you make a great case for becoming a Delta INVESTOR, when someone wants to by an airline STOCK.
But Delta's owning a refinery, or making $$$ off American Express, or their PRASM or percentage of profits in 2026 etc. has little to do with why someone whats...
@Tim Dunn: Keep arguing Delta's financials. That's what you always seem to focus on. You do always pick the best to highlight, which is fine. Because, once again, you make a great case for becoming a Delta INVESTOR, when someone wants to by an airline STOCK.
But Delta's owning a refinery, or making $$$ off American Express, or their PRASM or percentage of profits in 2026 etc. has little to do with why someone whats to buy an airline TICKET.
What DOES affect "which airline TICKET to buy" includes:
- On time stats
- Cancellation rates
- Irregular ops recovery
- In flight experience
- Scheduling convenience
Lots of Delta's competitors have already started the race to improve the experience for customers (Better reliability, Starlink, improved business class suites, etc) and are not only off the starting line, they around the first corner. Meanwhile, Delta is still decided which track shoes to put on (LEO, years behind in new aircraft deliveries, abandoned business class suites, etc). Seeing the loss of travel headcount in the NYC area year-over-year speaks loudly to the fact that Delta may be doing well for the financial community, but not so well for the traveler.
Fewer people are choosing Delta in NYC (down 650,000 people Year-over-Year) - good for Delta on figuring out how to make money with less passengers.
and, yet, dear Paul, DL DOES come out on the upper end of the ranking of US airlines in all of those metrics.
You and the simpletons fixate on an event or two that DL experiences but ignore the statistical operational shortcomings of other airlines.
How about yesterday, Paul? Flightaware shows that DL operated its mainline flights with a 10% better on-time than its biggest competitors other than B6 where DL led by 24%.
...
and, yet, dear Paul, DL DOES come out on the upper end of the ranking of US airlines in all of those metrics.
You and the simpletons fixate on an event or two that DL experiences but ignore the statistical operational shortcomings of other airlines.
How about yesterday, Paul? Flightaware shows that DL operated its mainline flights with a 10% better on-time than its biggest competitors other than B6 where DL led by 24%.
not one of the big 4 cancelled more than 2% of their flights but B6 - DL's biggest competitor at JFK and BOS - the two airports w/ the most cxls yesterday - cxld 14% and delayed 44% of its flights.
Did it occur to you that 1. you aren't really making the right comparisons and 2. DL recognizes that it is better to cancel a certain amount of flights in advance and operate what it can on time than to be delayed?
while DL can and wants to do better operationally, there isn't a carrier that is beating them financially.
If their operational performance turned off customers, it sure doesn't show up in their finances.
and you still can't grasp that DL is not interested in size; in fact, DL might be making more money in NYC (probaby is) with fewer seats and higher share relative to low cost carriers, while continuing to grow at EWR. DL is almost twice the size of AA and B6 - which are largest at JFK and LGA where DL operates.
What pray tell is DL (and AA and UA's) reason for existence, Paul?
Please don't make me report your pathetic logic to the FAA.
PP says, “You do always pick the best to highlight”
And he is running out of items from which to pick.
Let's agree to not go with "single day" stats. Even you should be able to agree that one day is too small a data point. We can find plenty where any carrier - even Delta - has a miserable day (or a couple, when Delta tries to initiate a recovery). After all, you YOURSELF said in your last post, "You and the simpletons fixate on an event or two that DL experiences" but in the...
Let's agree to not go with "single day" stats. Even you should be able to agree that one day is too small a data point. We can find plenty where any carrier - even Delta - has a miserable day (or a couple, when Delta tries to initiate a recovery). After all, you YOURSELF said in your last post, "You and the simpletons fixate on an event or two that DL experiences" but in the VERY NEXT SENTENCE you want to focus on a single day's operational stats.
The irony policy are on their way, Tim.
Let's do "Current Metrics", as you say, on two easily verifiable stats to see if Delta does come out in the "upper end" (your words). That "high bar" you established ("upper end") should only be the top half, or top four out of eight (I'm throwing Spirit out for obvious reasons). Or maybe "top two of the big four US airlines" perhaps?
On Time, YTD:
1) 80.0%, Alaska
2) 79.0%, Delta
3) 78.4%, United
4) 76.8%, Southwest
Verdict: Delta IS in the "upper end" by both measures (all US, and "big 4" US). Congrats!
Cancellations, YTD:
1) 0.99%, Allegiant (509 of 51,460 flights)
2) 1.14%, Southwest (6,443 of 565,543 flights)
3) 1.34%, Alaska (2,699 of 201,302 flights)
4) 1.89%, United (11,176 of 623,320 flights)
Verdict: Delta is NOT in the "upper end" for cancellations
Delta is also NOT in the "upper end" of the main "Big 4" airlines (Southwest and United are better / American is worse).
You only get 50% right on this claim, Tim. Two starts out of four. Half a rose, but not the full flower. Only one "thumb up" and one "thumb down" - Siskel and Ebert are a split vote. But it's been a big day for you - so not bad. You can go ask your mom for a cookie.
and yet the difference in cancellation rates (which are pretty tight) has not changed DL's revenue or profits.
and DL intends to fix its cancellation rate - in stark contrast to UA's baggage handling which they don't even acknowledge as a problem.
and DL handedly leads in the industry in the fewest invol DBs.
all of those along with wheelchair handling are DOT metrics.
My statement is correct.
DL is running the best operation...
and yet the difference in cancellation rates (which are pretty tight) has not changed DL's revenue or profits.
and DL intends to fix its cancellation rate - in stark contrast to UA's baggage handling which they don't even acknowledge as a problem.
and DL handedly leads in the industry in the fewest invol DBs.
all of those along with wheelchair handling are DOT metrics.
My statement is correct.
DL is running the best operation
You just want to fixate on a point in time - even half a year - because you can't admit that DL is running the best operation among its peers.
Lots of red flags in each of the big 3’s reports and I’m not sure how much longer they can sustain a war economy.
I pay extra to avoid flying AA and having to connect via their horrible hubs in CLT and DFW.
AA management needs to realize that flying to El Paso isn't a winning strategy.
the weird thing is how Doug Parker can't seem to admit what a disastrous mistake he and the Board made firing Scott Kirby.
Doug seems to be spending retirement taking victory laps after leaving the balance sheet and strategy in absolute shambles.
It shouldn't have surprised anyone that promoting the COO of the worst operational airline, Robert Isom, wasn't going to translate to better results at the CEO level.
Scott getting fired is a big reason why he's a better leader. He got some humble pie, and he talks quite a bit about how Oscar Munoz was his first boss to mentor him and give him constructive feedback. If Scott hadn't started a new adventure in Chicago, it's a guessing came as to how things would have unfolded for UA and AA.
Very fitting comment for someone based in Turkey.
Your headline: American Profits Plunge 88% In Q2, Airline Likely To Lose Money In 2026
AAL's headline: American Airlines continues to execute on commercial priorities, delivering highest quarterly revenue in company history
Are they delusional? Or just Orwellian?
Investors aren't stupid. Step 1 is admitting you have a problem
Delta-speak, sorry, I mean, double-speak.
We’ve always been at war with United.
4 flights. 4 mechanical delays on AA. Never again
AA is 4th is mechanical delays, behind Frontier, Jetblue and Southwest.
I am curious though, is the decline in AA's profitability over the past decade because they have been losing a lot of their loyal customers due to their cost cutting, or is the decline due to the occasional traveler not flying with the airline?
I'm curious because for those of us reading this blog frequently, we are likely more knowledgeable and perceptive about the little things with airlines than the average consumer. When I talk...
I am curious though, is the decline in AA's profitability over the past decade because they have been losing a lot of their loyal customers due to their cost cutting, or is the decline due to the occasional traveler not flying with the airline?
I'm curious because for those of us reading this blog frequently, we are likely more knowledgeable and perceptive about the little things with airlines than the average consumer. When I talk with strangers about AA, most of them seem to say how they've had decent flights with them. So, why exactly is AA less profitable nowadays? Have business travelers gone to DL and UA?
If you've read with an opinion mind any of Lucky's blog posts on this topic, you'll get your answer.
AA's hard and soft product is inferior, thus they can't charge a premium price. Sure they are catching up, but Delta and UA keep moving the goal posts that AA won't be able to truly catch up.
I think some of your data is incorrect. For example, DAL net income for Q1 '26 was -289m vice your +570m and for Q2 was +1,604m vice your -1,600 m which appears to be just a matter of - vs +. UAL Q1 net income was $699 vice your $387m.
And the pop-up ads are annoying to say the least.
no joke about the pop up ads. The latest thing on my various laptop browsers is the video ads taking over the entire screen out of the blue for no reason whatsoever that require an esc key tap to get out of. I thought it might be a specific browser issue, but nope. Just typing this I've had the same video ad take over my entire screen 3 times.
Ben needs to make money on his blog but it is getting really annoying.
just to be clear, UA's lead in the 1st quarter was because of sale-leaseback transactions that added debt while DL's net income was reduced because it revalued its equity holdings.
UA still did sale-leaseback transactions in the 2nd quarter but DL's results were purely a result of the operation.
DL simply runs a far better and more profitable business than anyone else in the indsutry
We're still waiting for you to explain how...
just to be clear, UA's lead in the 1st quarter was because of sale-leaseback transactions that added debt while DL's net income was reduced because it revalued its equity holdings.
UA still did sale-leaseback transactions in the 2nd quarter but DL's results were purely a result of the operation.
DL simply runs a far better and more profitable business than anyone else in the indsutry
We're still waiting for you to explain how UA went from leading financially last year in the 1st quarter to a $1.6 billion earnings deficit by the end of the year.
And the only question is whether UA can even make 2/3 of what DL makes this year even w/ sales-leaseback transactions.
I'll explain how United went from leading financially last year in the first quarter to a $1.6B deficit to Delta by the end of the year... right after you explain how you insist that Delta's losing 650,000 passengers, Year over Year, in the NYC market is Delta "doing better than ever in LGA and JFK".
I'll wait...
My current business class airfare from LAX to JFK has doubled from a few months ago; however, there is still one flight attendent in first class on the Airbus 321T and one flight attendent in business class on the Airbus 321XLR. How can AA still be losing money?
Easy, labor cost and fuel prices being high ✌️
Quick reminder: Isom's salary last year was $13.9M
And he's probably going to ask for/get a raise.
How Isom still has a job is beyond me. Bob Crandall still around?
From their planes, loyalty program, financials to their FA and management, nothing about American Airlines has aged well.
How was Q1 2025 impacted by tariffs? Trump's "Liberation Day" announcement was early April
I really dont see how AA can turn it around. I think we are in the early stages of the next Pan Am... 5 years from now, AA won't be around; they will liquidate. They cant drive a premium revenue like DL/UA, they cant afford to invest to become premium. They have crushing debt at very high interest rates, they have a weak international network.
Does anyone know how revenue sharing for the TATL JV works in practice? It strikes me AA's key mistake alongside cutting costs too much is they have also allowed BA to operate all the premium TATL services they should have been operating themselves to instead focus on the domestic part which is not that profitable. Basically they said 'no, we don't want that' to the most profitable bit of DL and UA's business! Seems utterly mad as a strategy.
@Tom
"they have also allowed BA to operate all the premium TATL services they should have been operating"
The problem with blaming that, is that you're just seeing it as AA/BA, and that's not how it works.
The J.V.s are reciprocal capacity as a whole, based on continent of origin. For every USA (and some other North American) flight that BA, Finnair, or Iberia operates, AA has to operate a reciprocal long-haul somewhere in...
@Tom
"they have also allowed BA to operate all the premium TATL services they should have been operating"
The problem with blaming that, is that you're just seeing it as AA/BA, and that's not how it works.
The J.V.s are reciprocal capacity as a whole, based on continent of origin. For every USA (and some other North American) flight that BA, Finnair, or Iberia operates, AA has to operate a reciprocal long-haul somewhere in its network. There's also percentage reciprocity for seats.
Aer Lingus and Level also add into that tally, but in different accounting than the core 4. AA has a separate but similar provision for flights operated by JAL.
So no, letting BA operate any individual flight, is no negative consequence to AA. Usually, it's the opposite.
The "problem" for aviation enthusiasts, is that the reciprocity doesn't have to be to some exotic locale, it could just be umpteenth additional frequency to Heathrow, de Gaulle, or Haneda. And unfortunately, that's what AA usually chooses to do.
@ImmortalSynn, I never said I saw the JV as just AA and BA, but whilst we’re on the topic, without access to the data I very strongly suspect at least half of the JV revenue is routed via LHR on either a BA shorthaul or longhaul flight at some point.
My point is BA successfully leverages the JV to generate quite a lot of its profit and ends up with a 15% EBIT margin, literally...
@ImmortalSynn, I never said I saw the JV as just AA and BA, but whilst we’re on the topic, without access to the data I very strongly suspect at least half of the JV revenue is routed via LHR on either a BA shorthaul or longhaul flight at some point.
My point is BA successfully leverages the JV to generate quite a lot of its profit and ends up with a 15% EBIT margin, literally one of the best in the world, whilst AA ends up with a 0% EBIT margin currently. It suggests to me BA have negotiated revenue sharing terms for the JV that work very well for them whilst AA has done a terrible deal (failing to account for their higher people costs).
Ridiculous. They've been breaking even. They can keep going like this indefinitely and are no where near liquidation and aren't even moving in that direction.
This is a question of how long the shareholders will keep putting up with their stock under performing before they force a leadership change. In my opinion it should have been done a while ago but they're acting like Isom knows where the bodies are buried or something...
Yes, I don't know what the board is waiting for! The Pilots don't have any confidence in Isom, the Flight Attendants don't have confidence in Isom. He keeps saying the same old story about how he's going to improve the airline but every quarter is a disappointment compared to the other 2 legacy carriers.
AA has 11 billion in liquidity and 27 billion in unencumbered assets. They aren’t liquidating. They are underperforming but not in a precarious position. Pan Am hadn’t reported a profit in a decade by the time they went under and AA has been profitable since 2022.
Assuming DFW and CLT are profitable fortress hubs for AA, how much of the financial drag comes from the capacity dump in ORD, where Scott Kirby (correctly?) stated AA was already losing money before adding even more unprofitable flying?
Idea: Launch nonstop US to Saudi Arabia AA nonstops. Fly empty if need be even. Instant profits!!!
I don't care who you are. That's funny right there!
Free money... from the country who created 15 of the 19... whoopsie, I mean, a 'strategic economic development program' offering 'revenue guarantees' and 'fee waivers' to expand 'air connectivity'...
Won’t get much FFP or CC revenue from that loser of a route and ask the LIV golf tour how long the blood money lasts. I bet DL wishes they had some lie-flat seat beds in a few 321s so they wouldn’t have to waste those 359s on it.
How is it even possible for American to operate ~20% more daily flights than Delta but only have 4.5% of Delta's net income?
Delta charges more per ticket, plus they outsource a lot of their ramp personnel. They don't have near as many ramp personnel as American does. Oh American ramp is unionized.
DL and UA have many flaws but they at least know how to run a viable business. What an embarrassment AA has become on every level.
Aye who cares, AA is the airline of the people.
At some point changes need to be made.....at the top.
AA needs new leadership. Someone that can inspire and bring new ideas that are not customer downgrades dressed up as "innovation."
Hopefully airlines in the US will never venture down the ULCC road again.
"But worry not, folks..." *gulp*
1. Ben thank you so much for presenting these numbers in tables, i really appreciate it, sincerely
2. Delta
3. Delta
4. Delta