Core Insights - American Airlines is struggling to keep pace with competitors Delta Air Lines and United Airlines in the luxury travel market post-COVID, despite recent efforts to enhance customer experience [2][3][4] - In the first nine months of 2025, American Airlines generated only $12 million in profit, significantly trailing Delta's $3.8 billion and United's $2.3 billion, capturing just 2% of the profits among the three major U.S. carriers [3] - The airline has ranked last in customer satisfaction and on-time arrivals, indicating a need for strategic changes to improve its brand and operational efficiency [3][4] Financial Performance - American Airlines reported a profit of $12 million in the first nine months of 2025, compared to $3.8 billion for Delta and $2.3 billion for United [3] - The airline's stock has decreased by 20% this year, contrasting with modest gains for its competitors [5] - Despite recent challenges, American's fourth-quarter profit forecast exceeded Wall Street expectations, leading to a 16% increase in share price [6] Strategic Initiatives - CEO Robert Isom is focused on rallying over 130,000 employees to support a turnaround strategy aimed at improving customer experience and operational performance [5][7] - American Airlines is investing in customer experience enhancements, including new lounges, improved technology, and upgraded aircraft, with capital spending expected to rise from $3.8 billion this year to $4.5 billion next year [10][14] - The airline is also revamping its website and app to improve customer interaction and facilitate sales, including the introduction of a new mid-tier credit card [13][24] Competitive Landscape - American Airlines has lagged in adopting new retailing fares and technology compared to Delta and United, which have capitalized on customer willingness to pay for premium services [8][9] - The airline's recent challenges include a blocked regional partnership with JetBlue, limiting its market reach in key areas like Boston and New York [28][29] - United Airlines has been investing over $1 billion annually to enhance customer experience, while American has been more cautious in its spending [30][31] Customer Experience Focus - American Airlines is undergoing a comprehensive revamp of its customer experience, including the introduction of premium cabins and improved in-flight services [10][14][20] - The airline has signed a deal with Lavazza for coffee services and is rethinking its beverage offerings to enhance the onboard experience [21] - American is also working to improve reliability and reduce bottlenecks during boarding, which has reportedly decreased gate-checked bags by 25% since May [26]