American Airlines: A Bumpy Ride Ahead?
A Huge Drop in Profits
American Airlines has just shared its 2025 financial results, and it's not a pretty picture. The company made only $111 million in profit, a huge drop of 87% compared to the previous year.
The Gap Widens
To put it into perspective:
- Delta made $5 billion
- United made $3.4 billion
That's a big gap!
The Numbers Don't Lie
- Total Operating Revenue: $54.6 billion (only a 0.8% increase from the previous year)
- Operating Expenses: Up by 3%
- Passenger Load Factor: 83.6% (down 1.3% from the previous year)
A Tough Year for the Industry
The airline industry had a tough year in 2025, with economic uncertainty in the first half. But American was already struggling to keep up with Delta and United.
A Glimmer of Hope?
The only bright spot is that American is predicting a better 2026. They expect to make between $1.70 and $2.70 per share.
CEO's Promises
American's CEO, Robert Isom, says the airline is positioned for significant growth in 2026 and beyond. He talks about investments in:
- Customer experience
- Network
- Fleet
- Partnerships
- Loyalty programs
But these are the same things he's been saying for years.
The Battle with United
The battle with United in Chicago is another concern. United's CEO, Scott Kirby, predicts that American will lose $1 billion over the course of the year.
A Broken Promise
Looking back, in 2017, former American CEO Doug Parker said the airline would never lose money again. He predicted profits of around $3 billion even in a bad year. That didn't age well.
