American Airlines (AA, Dallas/Fort Worth) is pursuing a long-term strategy to narrow its profitability gap with rivals Delta Air Lines and United Airlines, while preparing a new widebody aircraft order and dismissing the possibility of a merger with United.

In an interview with CNBC, chief executive Robert Isom said that American's long-term objective is to eliminate the margin gap with its competitors by strengthening its premium offering rather than expanding its scale. While there is no timeline to achieve that goal, the “long-range plan is certainly making up the margin gap,” he said.

Results from 2025 show that American cannot match United and Delta in profit, with the former recording GAAP (generally accepted accounting principles) net income of USD3.4 billion while the latter posted USD5 billion. American's GAAP profit for last year was USD111 million.

To address the gap, American plans to improve operational reliability, invest in premium cabins and airport lounges, grow its loyalty programme, and increase higher-end revenue by attracting more premium travellers. American also aims to boost its performance in competitive markets such as Los Angeles International, Chicago O'Hare, Washington Dulles, and New York JFK while leveraging its North American network.

American's chief financial officer, Devon May, said the company's success would ultimately be measured by its ability to close both its revenue and unit revenue gap with Delta and United, even if the management is running as an efficient business as it is.

Widebody order

Isom confirmed that American expects to place a widebody aircraft order this year, with both Airbus and Boeing competing for the contract. While declining to disclose the size of the order, he said Airbus "could play a big role" despite American's current double aisle fleet consisting entirely of Boeing aircraft. Deliveries would likely begin in the early or middle part of the next decade.

The comments follow remarks made during American's 2026 annual meeting, where Isom disclosed that the carrier had already issued a request for proposals (RFP) to Airbus and Boeing as it evaluates its next widebody acquisition.

ch-aviation fleets data shows American Airlines' B777-200ERs average over 25.7 years of age, the oldest average type among its fleet of 1,032 aircraft. This is the aircraft type set to be retired through the arrival of the new widebodies in the next decade.

Merger with United out

The chief executive also dismissed suggestions of a merger with United Airlines after United CEO Scott Kirby publicly floated the idea earlier this year.

According to Isom, discussions with advisers, interested parties, and politicians concluded that such a transaction had no realistic prospect of approval given previous airline mergers and US antitrust law.

"We don't spend a lot of time pursuing impossibilities," Isom said, adding that American remains focused on opportunities that can realistically improve its business.