After a fairly rocky 2024–25, American Airlines (AA) seems to be recovering well in 2026. Like Pakistan International Airlines (PIA) in Pakistan, AA enjoys a kind of semi-national airline status in the US and is often viewed as an organisation willing to take up the national service mantle where others shy away. With PIA’s recent privatisation — though a majority stake remains in the public sector — it is in this context that an evaluation of AA’s recent challenges could help determine how a post-privatised PIA might learn going forward.

Following a poor financial performance beginning in late 2024 and continuing for over a year, AA’s CEO, Robert Isom, has faced significant criticism: a unanimous vote of no confidence from the board of the Association of Professional Flight Attendants (APFA) and open grumbling over his leadership from another union, the Allied Pilots Association. According to them, the airline has been falling dangerously behind competitors and the current leadership has failed to change course. Their grievance? American Airlines made only $111 million in profit last year on revenues of $54.6 billion. Alaska Air made almost as much profit on $14.2 billion in sales, while Delta Air Lines and United Airlines generated profits of about $5 billion and $3.4 billion respectively. Loyal passengers have also been disgruntled, with an “Executive Platinum” member filing a damaging lawsuit claiming she was bounced around by various snafus over the past year while attempting to encash an entitled “systemwide upgrade” for travel to Japan.

The real question, however, is how much of AA’s woes are Isom’s responsibility and how much stems from deeply embedded structural burdens and cultural disadvantages that are difficult to dismantle. These are precisely the elements the new PIA owners must remain cognisant of, since the airline may, in many ways, continue to function like a state-owned enterprise despite being privatised.

Crisis Management – It is never a good look when flight disruptions dominate headlines, but given that weather is beyond his control, experts suggest Isom’s record here is not poor. AA has been proactive, acting much like a national carrier on a mission during severe winter storms affecting hubs in Dallas and Charlotte, as well as hurricanes disrupting Miami operations. Add to this a midair collision involving Flight 5342 in Washington — a tragedy caused by a military helicopter — and AA’s compassionate handling of the crisis, though commendable, did little to improve financial performance. Its relative shortage of wide-body aircraft and vulnerability to pilot retirements also predate Isom and will take time to address. One could easily perceive these challenges as PIA’s simply by replacing the initials.

Employee Relations – It is important to distinguish AA’s unions from the workers they represent. While there are currently no negotiations with management, unions have faced internal battles and competition from rival groups. Although Isom must address concerns, he has shown responsiveness to criticism. Moreover, AA flight attendants and pilots currently lead the industry in pay, often earning a third more than rivals, and in some cases have an average age significantly higher than newer airlines. Nonetheless, morale remains low. Stressful times increase burnout, and no one likes to see their company losing ground to competitors. Again, the parallels with PIA are striking.

Leadership – Ultimately, like any CEO, Isom will be judged by results. He is paying down debt ahead of schedule, secured an exclusive credit card deal with Citi, and is rolling out free WiFi and upgraded lounges that appear worth the cost. Many airline analysts describe him as resilient across multiple dimensions. Still, 2026 will be crucial for both AA and PIA, as both institutions must craft stronger performance narratives in the year ahead.

Dr Kamal MonnooThe writer is an entrepreneur and economic analyst. Email: kamal.monnoo@gmail.com

© The Nation