A recent opinion piece in Fortune, co-authored by a Yale management professor, has sparked debate regarding its defense of American Airlines CEO Robert Isom. The article aimed to provide 'strategic context' for the airline's financial performance and ongoing union dissatisfaction, but critics argue its claims do not align with industry realities and financial data.
Key Takeaways
- A Yale professor's defense of American Airlines CEO Robert Isom has drawn criticism.
- The defense attempts to explain American's lower profitability compared to rivals.
- Critics highlight the significant profit gap between American and airlines like Delta and United.
- Claims about American's network and product quality are being challenged.
- Union leaders have publicly expressed a lack of confidence in Isom's leadership.
Yale Professor's Argument for Isom's Leadership
Jeffrey Sonnenfeld, a Senior Associate Dean for Leadership Studies and Lester Crown Professor in Management Practice at the Yale School of Management, along with Steven Tian, research director at the Yale Chief Executive Leadership Institute, published a column praising Robert Isom's leadership at American Airlines. They suggested that dramatic headlines about a 'civil war' within the airline, fueled by union leaders' no-confidence votes, miss crucial 'strategic context.'
The authors argued that a direct comparison of American's stock performance and profitability with Delta and United is misleading. They cited American's status as the world's largest passenger carrier as a distinguishing factor. The column asserted that Isom is guiding American to 'new heights' despite criticism, portraying his leadership as a 'remarkable model of resilience.'
Profit Disparity in 2025
- American Airlines reported $111 million in profits.
- Delta Air Lines generated $5 billion in profits.
- United Airlines earned $3.4 billion in profits.
Challenging the 'Strategic Context'
The core of the Yale article's defense rests on several points. First, it claims American has avoided annual losses during Isom's tenure, even in 2022 when the airline faced a nearly $2 billion loss in the first quarter due to the pandemic. However, this argument shifts focus from comparative profitability, which remains a key concern for investors and employees.
A central claim is that United Airlines benefits from a significant $1 billion-plus annual cost advantage over American due to its non-pilot labor groups operating under outdated contracts. The Fortune piece states that American's flight attendants are paid approximately 35% more than United's. This, it implies, explains the profit gap. Yet, this analysis struggles to account for Delta's superior profitability, which surpasses United and American combined, despite Delta also paying industry-leading wages.
"The 'civil war' at American Airlines is hardly 'groupthink' or 'punditry' when the unions representing pilots and flight attendants have been publicly condemning the direction the airline is heading."
Union Sentiment and Compensation
The Yale authors also suggest that the 'no confidence' votes from unions, such as the Association of Professional Flight Attendants (APFA) and grumbling from the Allied Pilots Association, are merely 'inter-union political dynamics.' They claim Isom is 'anecdotally beloved' by his employees, pointing to high contract ratification votes from flight attendants (87% approval) and mechanics (over 90%). The piece frames American's high rate of unionized employees (87% of over 130,000 workers) as a virtue, arguing Isom paid them fairly because it was the 'right thing to do.'
This perspective, however, overlooks the fundamental issue of employee dissatisfaction regarding the airline's overall vision and financial lagging compared to competitors. While Isom may have handled some situations with integrity, the significant profit disparity raises questions about strategic direction, which impacts employee morale and future prospects.
Network Strength and Product Quality Claims
Another point of contention is the assertion that American Airlines possesses the 'strongest network in the U.S.' and offers a 'fantastic product and experience' for international, business, and premium flyers. Critics strongly dispute this, pointing out that Delta and United often outperform American in product offerings, such as seatback screens and more affordable Wi-Fi. Many industry observers suggest that the superior product quality of competitors is a key factor in their better financial performance.
The Fortune article also highlights American's new partnership with Citi, projected to bring in over $10 billion annually by the end of the decade. This partnership aims to position American competitively against Delta (American Express) and United (Chase) in higher-margin growth markets.
Historical Context of CEO Leadership
The airline industry has seen a shift from flamboyant founders like Juan Trippe and Herb Kelleher to more reserved leaders. The Yale column praises Isom for his 'no jerks' philosophy and hands-on approach, contrasting him with 'CEO-as-celebrities' who seek adulation. This framing attempts to portray Isom as a pragmatic leader focused on results rather than public image.
Unique Headwinds and Accomplishments
The defense attributes American's challenges to 'unique idiosyncratic headwinds' that competitors supposedly did not face. These include disruptions from Boeing's production crises, arguing that American, with the world's largest fleet and a major Boeing customer, absorbed more impact. However, this claim is questioned, as other airlines, like United, have also managed significant Boeing orders and delivery delays. Furthermore, American deferred many of its Boeing 787-9 Dreamliner orders in late 2023, suggesting the issue was not as acutely detrimental as presented.
Severe weather events, such as Winter Storm Fern in January 2026, which canceled over 9,000 flights and caused an estimated $150 million–$200 million revenue impact, were also cited. The storm disproportionately affected American's hubs in Dallas/Fort Worth (DFW) and Charlotte, while Delta and United's main hubs were less impacted. The article also mentioned Isom's handling of the Flight 5342 tragedy in early 2025, praising his compassionate response and quick presence at Reagan National Airport (DCA).
Isom's Reported Accomplishments
Despite the challenges, the Fortune piece credits Isom with several positive developments:
- Debt Reduction: Paying down $17 billion in debt since mid-2021, a pace described as improbable just a few years ago.
- Fleet Investment: Ordering 260 new aircraft in 2024, the second-largest fleet investment in American's history, with options for 193 more.
- In-flight Connectivity: Rolling out free high-speed satellite Wi-Fi across the entire fleet, including regional jets, offering more free high-speed Wi-Fi aircraft than any other U.S. carrier.
- Technological Innovations: Introducing new technology for self-rebooking disrupted flights, expanding biometric screening, deploying next-generation kiosks, and a connection-risk prediction tool across seven hubs.
- Fleet Modernization: Reaching its 1,000th mainline aircraft milestone in August 2025, claiming the largest and youngest fleet among U.S. network carriers.
- Sustainability Efforts: Placing the largest-ever conditional order for hydrogen-electric engines.
- Partnerships: Growing international relationships and expanding the oneworld alliance.
Critics counter that many of these initiatives, such as fleet orders and airport upgrades, were planned or initiated before Isom became CEO. They also point out that competitors like United introduced similar technologies, such as "Connection Saver," years earlier. While American reaching 1,000 mainline aircraft is a milestone, the order itself predates Isom's leadership. The comparison of Wi-Fi services also faces scrutiny, as Delta already offers free Wi-Fi, and United is rapidly installing Starlink across its fleet, including regional jets.
Conclusion: A Disconnect with Reality?
The defense of Robert Isom, as presented in the Fortune column, appears to rely on selective timelines and an optimistic interpretation of events. While acknowledging some of Isom's positive actions, such as his response to the Flight 5342 tragedy, the overall argument for American Airlines' performance and employee sentiment does not fully align with observable financial results or the public statements of labor unions.
The ongoing labor unrest and the significant gap in profitability compared to its main rivals suggest a deeper issue than merely 'inter-union political dynamics' or 'unique headwinds.' Effective leadership is ultimately measured by the confidence of those doing the work, and currently, that confidence appears to be conspicuously absent among a significant portion of American Airlines' workforce.
