FORT WORTH- American Airlines (AA) is under mounting pressure from its workforce, as six major unions unite to call for stronger management accountability and a new strategy to compete with rivals Delta Air Lines (DL) and United Airlines (UA).
Despite reporting record quarterly revenue, American’s profit margins are slipping. Employees and unions argue the carrier risks falling further behind if it does not shift its focus toward a more premium customer offering, rather than competing with low-cost rivals.
Photo: Denver AirportUnions Push for Change at American Airlines
Six unions representing tens of thousands of American Airlines employees came together in a rare show of unity ahead of Labor Day.
The coalition includes pilots, flight attendants, ground workers, passenger service agents, and dispatchers. Their joint message: American Airlines must improve both its financial performance and working conditions to secure long-term stability.
The groups involved are:
- Pilots – Allied Pilots Association (APA)
- Flight Attendants – Association of Professional Flight Attendants (APFA)
- Aircraft Dispatchers – Professional Airline Flight Control Association (PAFCA)
- Passenger Service Agents – CWA-IBT
- Ground Workers and Mechanics – TWU-IAM
In their joint press release, the unions said the leadership summit demonstrated their “unified commitment to protecting members, improving working conditions, and demanding greater accountability from management.” They also emphasized their intent to remain coordinated in future labor actions.
What makes this unusual is the collective effort. While individual unions have criticized American before, this marks one of the first times multiple labor groups have aligned to apply pressure in such a visible, coordinated way.
Photo: Aero Icarus | FlickrFinancial Performance Gap
In Q2 2025, American Airlines posted record revenue of $14.4 billion but saw net income fall 16% year-over-year to $599 million. Its operating margin stood at 8%, significantly lower than Delta’s nearly 13%. United Airlines also outperformed American, with stronger pre-tax earnings.
The problem lies in American’s reliance on domestic flying. By focusing heavily on competing with low-cost carriers like Spirit (NK) and Frontier (F9), the airline has diluted its yield and struggled with overcapacity. With the U.S. economy showing signs of slowing, this strategy has left the carrier vulnerable to fare declines.
Meanwhile, Delta and United have been capturing high-value travelers by investing in premium cabins, seatback entertainment, fast Wi-Fi, and an upgraded passenger journey. American, in contrast, stripped out features like seatback screens, leaving it with fewer competitive advantages at the top end of the market.
Photo: James Cridland | FlickrStrategic Missteps and Industry Comparisons
American’s decision to promote its schedule as the core “product” has failed to resonate. Passengers expect more than flight frequency when choosing where to spend their money, and competitors have capitalized on this demand for quality.
This imbalance is fueling concerns that American could repeat the mistakes of Spirit Airlines, which filed for Chapter 11 bankruptcy protection for the second time in a year. While American is far larger and more diversified, the comparison highlights the risks of chasing market share without cultivating premium revenue streams.
There are indications that American Airlines recognizes its shortcomings. Executives have spoken about the need to enhance the premium travel experience, but unions and analysts argue that a clear, comprehensive plan has yet to emerge.
Photo: Aero Icarus | FlickrWhy the Union Push Matters
For unions, the stakes go beyond financial performance. A weaker airline threatens long-term job security, benefits, and working conditions.
By aligning their voices, the six labor groups aim to push management toward a strategy that protects both the workforce and the company’s competitive position.
The timing is also significant. With competitors strengthening their brands and customers showing a willingness to pay more for quality, American risks being left behind in both profitability and reputation if it does not act decisively.
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