Forbes·2025-12-04 17:00Core Insights - American Airlines is making strategic moves to catch up with Delta Airlines in financial metrics and passenger preference, with a focus on fleet improvements and premium seating [2][9] Group 1: Airline Performance and Strategy - Delta Airlines continues to lead the U.S. airline industry, generating over 50% of the industry's profits despite having only 20% of the market seats [4] - American Airlines aims to reduce its debt from approximately $36 billion to below $35 billion by the end of 2027, while Delta plans to reduce its debt to about $10 billion by 2026 [8][9] - Delta's partnership with American Express has been crucial for its profitability, with Delta being the number one source of American Express revenue, accounting for 30% of its U.S. consumer spend [5][7] Group 2: Fleet and Service Enhancements - American Airlines received its first Airbus A321XLR in October, with the first flight scheduled for December 18, marking a significant step in its fleet modernization [11] - The A321XLR will feature a configuration of three cabins, including 20 lie-flat suite seats, 12 premium economy seats, and 123 coach seats, aimed at increasing premium seating by 20% and lie-flat seating by 50% by 2030 [11][13] - American plans to expand its A321XLR service to international routes, starting with JFK-Edinburgh in March, and aims to have 15 or 16 XLRs in its fleet by the end of 2026 [12] Group 3: Financial Projections and Partnerships - American Airlines anticipates that a new credit card deal with Citibank, effective in 2026, will enhance its credit card revenue, potentially reaching $10 billion annually by the end of the decade [14] - The airline's free cash flow was reported at $1.7 billion through the third quarter, indicating a need for strategic improvements to catch up with Delta [9][10] - American Airlines is focusing on regaining corporate market share and implementing cost-cutting measures as part of its strategy to improve profitability [10]