American Airlines Is Falling Behind Delta And United – Now, Six Unions Are Turning Up The Heat

In recent years, American Airlines has been accused of becoming the new Spirit Airlines, slashing its onboard product and discounting fares on domestic routes while retreating from international destinations. Could American Airlines end up in the same precarious position as Spirit if it doesn’t change its ways… and fast.

Six unions that represent tens of thousands of American Airlines employees, including pilots, flight attendants, passenger service agents, ground workers, and dispatchers, have put the Fort Worth-based carrier on blast over its trailing financial performance.

In a landmark meeting, leaders from six different unions met earlier this week to discuss how they can exert their influence on American Airlines’ management and strengthen the carrier’s position against its two biggest rivals – Delta and United Airlines.

This might all sound like union officials are meddling in matters that they have no business in, but, as the unions said in a rare joint press release, they want to secure “a more prosperous future” for American Airlines, which would, in turn, lead to better job security and improved working conditions for its members.

“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,” the unions wrote on the eve of the Labor Day weekend.

“We are committed to maintaining a cohesive, coordinated labor coalition to address the opportunities and challenges ahead.”

Individual unions publicly slamming American Airlines over its recent financial performance and strategic direction isn’t anything new, but unions coming together in a coordinated attempt to pressure the carrier’s leadership team is unusual.

For the second quarter of 2025, American Airlines reported record revenue of $14.4 billion, but the carrier’s net income plummeted 16% year-over-year to $599 million.

American Airlines had an operating margin of around 8%, while Delta Air Lines boasted an operating margin of nearly 13% and a pre-tax profit of $1.8 billion.

One of American’s biggest issues is that it is trailing its rivals in attracting high-spending customers in premium cabins, which is driving passenger demand and profits.

Critics accuse American Airlines of focusing too much on its domestic network, competing with low-cost rivals like Spirit and Frontier. This has resulted in major over-capacity issues, especially with the US economy cooling, which, in turn, has driven down airfares and yield.

American Airlines had publicly tried to turn its network into its product, but what it failed to realize is that passengers wanted a lot more than just a schedule when they chose what airline to fly with.

At the same time, Delta and United have been engaged in an arms race to become more premium, investing in seatback screens as American Airlines was ripping them out, installing fast and free in-flight Wi-Fi, and adding thoughtful touches throughout the passenger journey.

These investments have allowed Delta and United to charge premium fares to passengers who are able and willing to spend more for a better flying experience. In contrast, American Airlines has been left competing with discounters.

There are, however, signs that American Airlines realizes that it has made some major strategic errors. The carrier is now talking up its commitment to creating a more premium experience, although a comprehensive plan still seems to be lacking.

When you look at the major financial issues facing budget carrier Spirit Airlines (which filed for Chapter 11 bankruptcy protection for the second time in a year on Friday), it’s easy to see why AA’s employee unions want the airline to go much further and faster to change its business plan.