American Airlines reported record revenue of nearly $17 billion for the second quarter, yet the company retained only $71 million in adjusted earnings. This result places the Fort Worth, Texas-based carrier significantly behind its primary competitors. During the same period, Delta Air Lines earned $1.6 billion, and United Airlines reported $805 million in profit.
The airline is currently expanding its operations at a faster rate than its rivals. Capacity increased by 5.4 percent in the second quarter, with plans for approximately 5 percent growth for the full year. The carrier intends to add 48 aircraft to its fleet in 2026. Despite this rapid expansion, American remains the least profitable of the major U.S. carriers.
Financial analysts note that the company’s pre-tax margin trailed both Delta and United by more than 500 basis points last year. The airline’s leadership has stated a goal to close a $3 billion profit gap with United and a $5 billion gap with Delta. However, the cost of adding new capacity continues to weigh on margins.
American is also seeking to expand its international network by placing a new order for widebody aircraft. The carrier has issued a request for proposals to both Boeing and Airbus, comparing the Boeing 787 against the Airbus A330neo. This comes on top of an existing order for 89 Dreamliners, which includes 19 aircraft to be delivered and an option for 19 more.
The airline carries the highest debt load among the big three carriers, with net debt estimated between $27 billion and $30 billion. This leverage ratio is nearly four times its earnings, compared to 2.6 for Delta and approximately $20.8 billion for United. Financing a new long-haul fleet would increase this debt burden further.
The company is evaluating replacements for its older 777-200 aircraft. The 787-8 model costs approximately $248 million, while the 787-9 is priced at $293 million. The Airbus A330-800 is listed at about $260 million, and the A330-900 at $296 million. The final decision on the fleet order has not yet been made.
