The news: American Airlines CEO Robert Isom is facing mounting pressure after the flight attendants’ union issued a formal vote of no confidence on Monday, the first time the union has taken such action against the airline’s CEO. The move came just days after the Allied Pilots Association called for a meeting with American’s board to discuss leadership and the company’s performance.

Why is this happening? American earned just $111 million last year, translating to a 0.2% margin, a stark contrast to rivals. United posted $3.35 billion in profit at a 5.7% margin, while Delta earned $5.91 billion at a 7.9% margin, despite all three carriers flying broadly similar capacity, per CNBC.

The gap largely reflects American’s struggle to keep pace with competitors’ premium offerings, which have become a key driver of profitability. Delta, for example, is leaning heavily into premium cabins, with CEO Ed Bastian recently saying he expects “virtually all” seat growth this year to come from higher-end products as demand in the main cabin softens.

American is also still working to win back corporate travelers it lost following an unpopular—and since reversed—strategy that pushed customers away from booking agencies and toward direct purchases through its own website and app. That move strained relationships with travel managers and ceded share to rivals at a time when premium and corporate demand proved critical.

Implications for the travel industry: American’s problem isn’t demand; people across income levels still want to travel, and the airline’s large international network should be an advantage. Where American has fallen short is execution and clarity of vision.

While Isom has laid out a turnaround plan built around better service, network tweaks, and improved monetization, labor groups are openly questioning whether he can deliver.

There’s still room for American to chart a distinct path. It doesn’t need to copy Delta’s ultra-premium playbook to improve results. A clearer, better-communicated balance between mass-market travelers and higher-yield customers could resonate—if it’s explained simply and executed consistently. Until that gap closes, American risks remaining a full-service airline without the pricing power or margins that now define top-tier industry performance.

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