Core Insights - American Airlines CEO Robert Isom defended the airline's performance against negative comments from United Airlines CEO Scott Kirby, emphasizing that American does not base its operations on competitors' perceptions [2][4] - Isom highlighted growth opportunities at Chicago O'Hare Airport (ORD), where American aims to increase its peak departures to 485, potentially exceeding 500 in the following year [3][5] - American Airlines has a domestic network that constitutes 70% of its operations, which Isom claims is a competitive advantage compared to peers [6][7] Competitive Landscape - Kirby characterized the U.S. airline sector as having "two brand loyal airlines really winning," identifying United and Delta as the primary winners, while suggesting that other airlines, including American, are losing [4][5] - Isom did not provide a direct answer regarding the percentage of American's routes that are unprofitable but emphasized the airline's focus on domestic routes during a time when international flights are more lucrative [6][7] - Isom pointed out that American Airlines pays its employees market wages, contrasting this with competitors who may not do so, which could impact operational costs and employee satisfaction [7][8] Financial Considerations - United Airlines reported significant expenditures on flight attendant signing bonuses, totaling $561 million in the second quarter, as part of a broader $6 billion contract over five years [8] - The competitive wage structure among airlines is highlighted, with American's current contracts for flight attendants being more favorable compared to United's ongoing negotiations [8][9]
American Airlines CEO Jabs Back After Attack By United CEO