**American Airlines Strives to Catch Up in Post-Covid Luxury Travel Boom**
*By Kevin Carter | Getty Images News | Getty Images*
*FORT WORTH, Texas*
This fall, American Airlines began serving customers Champagne Bollinger in its top-tier lounges and cabins. However, at headquarters, there is little reason to celebrate just yet. Despite offering more flights than any other airline according to OAG, American has fallen behind large rivals Delta Air Lines and United Airlines in capitalizing on the post-Covid luxury travel boom.
In the first nine months of 2025, Delta generated $3.8 billion in profit, United made $2.3 billion, while American Airlines posted only $12 million. This means American accounted for just 2% of the total profits earned by the three biggest U.S. carriers so far this year.
The airline also ranked last in the J.D. Power North American airline customer satisfaction survey this year and lagged in on-time performance, placing ninth out of 10 airlines for arrivals in the first half of 2025, according to the Department of Transportation.
### Facing Challenges and Toward a Turnaround
American Airlines has been working to undo the damage caused by a failed business-travel sales strategy and its reputation for delays. Known in the 1980s as the “on-time machine,” the airline is now striving to uplift its brand after strategy missteps, cautious spending, and delays in embracing emerging trends—such as travelers’ growing willingness to pay for bigger seats.
To drive this turnaround, CEO Robert Isom faces the critical task of rallying American’s more than 130,000 employees and winning over both customers and investors. This year, American’s stock has fallen 20%, while Delta and United have seen modest gains.
However, there are signs of change. Last week, American’s fourth-quarter profit forecast exceeded Wall Street analysts’ expectations, causing shares to surge more than 16%—the largest weekly increase in nearly a year.
“You’re going to have a three-month period where you have to be crystal clear on your story,” said Conor Cunningham, an airline analyst at Melius Research. Yet, bigger changes will require time and investment.
“American hasn’t been paying attention to the customer for the longest time,” said Henry Harteveldt, founder of the Atmosphere Research Group travel consulting firm. “I believe there is the beginning of a meaningful turnaround, but a large airline like American is not going to be turned around overnight.”
### Changing the Customer Experience Mindset
Heather Garboden, American’s Chief Customer Officer, who has over two decades of experience within the company and US Airways, is leading a comprehensive overhaul of the nearly century-old carrier.
“Fifteen years ago, I don’t think in the industry there was much belief that customer experience really drove differentiation between airlines. Everyone felt it was price and schedule, and that’s it,” Garboden said. “That has changed, and we understand that.”
American fell behind its rivals in retailing fares and technology. Delta, the most profitable U.S. airline, was quick to recognize customers’ willingness to pay for premium first-class seats—a lucrative segment once reserved for free upgrades to frequent flyers. Now that practice is common industry-wide, and American is exploring ways to sell more premium seats and ensure its aircraft are equipped accordingly.
### Impact of the Latest Merger
Another hurdle for American has been its timing. It was the last of the big three U.S. airlines to complete a mega-merger in 2013 when it combined with US Airways, whereas Delta and United had years to integrate and improve their products.
### New Lounges, Coffee, Suites, and More
Garboden noted that customer experience goes beyond luxury touches like Champagne or plush lounges. “It’s the whole holistic view — from end to end, how we want it to feel,” she said.
American anticipates capital spending of $3.8 billion this year, rising to about $4.5 billion in 2026, including investments in new aircraft. Despite holding nearly $37 billion in total debt, the airline plans to reduce this by at least $2 billion before 2028.
One emblematic decision from nearly a decade ago was removing seat-back screens to save costs. Now, American is committed to reclaiming this ground and innovating aggressively over the next decade.
### Loyal Customers Remain
Despite past shortcomings, some customers remain loyal due to American’s convenience and flight frequency. Todd Bryan, a 41-year-old sales account manager from Fayetteville, Arkansas, holds Executive Platinum status and primarily chooses American because of its extensive flight options from his home airport.
Bryan appreciates frequent upgrades but has noticed American becoming more aggressive about offering buy-ups for cash or miles. While typically preferring to wait for free upgrades, he’s open to purchasing an upgrade if the price feels right.
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American Airlines is clearly at a pivotal moment. With renewed leadership focus, increased investments, and a growing emphasis on customer experience, the carrier is positioning itself for a potential comeback in the fiercely competitive luxury travel market. However, as industry experts caution, substantial progress will take time.
https://www.cnbc.com/2025/10/26/american-airlines-delta-united.html
