American Airlines pushes premium upgrades to narrow profit gap

American Airlines is trying to turn its size into stronger profits, a key issue for investors watching whether the carrier can catch up with Delta Air Lines and United Airlines. CEO Robert Isom told CNBC that American’s long-term plan includes closing the margin gap with those rivals, though he did not give a timetable.

The gap is large. CNBC reported that United earned about $3 billion more than American last year, while Delta made nearly $5 billion more. American is operating about 6,500 flights a day this year, according to Cirium data cited by CNBC, more flying than its closest competitor.

For everyday investors, the issue is pricing power. Airlines can fly more planes and still trail peers if they collect less revenue per seat, especially from premium cabins, loyalty programs and international routes. American Chief Financial Officer Devon May told CNBC the company will track whether it is closing its revenue and unit revenue gaps. Unit revenue means revenue measured against flying capacity, a common airline metric for how much money a carrier gets from the seats it puts in the market.

Premium seats are central to the plan

American executives told CNBC the company is investing in cabin upgrades, bigger lounges, network growth and its loyalty program. The airline is adding more premium seating and new amenities as it takes new aircraft and remodels existing planes.

Isom told CNBC that American will soon extend cabin refresh work to its Boeing 787-8 Dreamliners. He also said updated interiors on the carrier’s Boeing 777-300ER aircraft could appear in the next few weeks. CNBC reported that a lie-flat business-class seat can bring in close to $10,000 on some long-haul international flights, compared with $2,000 or less for a coach seat.

American is also weighing whether to restore seatback screens to much of its narrow-body fleet, executives have said, though no decision has been made. The airline recently joined carriers adding Starlink satellite Wi-Fi from SpaceX, according to CNBC.

The premium push comes with labor concerns. Julie Hedrick, president of the Association of Professional Flight Attendants, said in a statement to CNBC that American is expecting fewer flight attendants to handle more personalized service as 70-seat business-class cabins arrive. American reduced flight attendant staffing on those aircraft from 13 to 11 in 2020, CNBC reported.

Lounges and aircraft orders are next

Chief Customer Officer Heather Garboden told CNBC that American plans to build a 37,000-square-foot Admirals Club at Dallas Fort Worth International Airport, the largest lounge in that network. The airline is also planning a grab-and-go Provisions lounge in the airport’s Terminal F and a Flagship check-in area in Terminal D, CNBC reported.

New long-haul aircraft are another part of the plan. Isom told CNBC that American could place a wide-body jet order this year, with both Boeing and Airbus under consideration. He said Airbus could have a significant role, while CNBC noted that American’s current wide-body fleet is all Boeing. The company declined to say how many planes it may order.

American’s fleet has more than 1,000 aircraft and was the youngest among the three largest U.S. airlines in 2025 annual filings, according to CNBC. Still, dozens of its Boeing 777 wide-body planes average more than 20 years old.

Reliability and debt remain pressure points

American ranked sixth among 11 U.S. airlines for punctuality in the first half of the year, with a 76.6% on-time rate, according to Cirium data cited by CNBC. Delta and United ranked second and third. Under Isom and Chief Operating Officer David Seymour, American is spacing out schedules at major hubs and using artificial intelligence to predict maintenance issues, CNBC reported.

The balance sheet is another challenge. CNBC reported that American still carries about $35 billion in debt, down from roughly $54 billion after the pandemic.

Analysts expect American to earn 64 cents a share this year on an adjusted basis, up almost 80% from last year, according to estimates cited by CNBC. Wall Street expects adjusted earnings of $2.58 a share in 2027. American is scheduled to update investors when it reports second-quarter results on Thursday.

This story draws on original reporting from CNBC.