Connect with us

Business

American Airlines flight attendants to picket as frustrations grow

Published

on

American Airlines flight attendants to picket as frustrations grow
Can American Airlines turn itself around?

American Airlines flight attendants’ union plans to hold a picket outside the company’s headquarters on Thursday pushing for new leadership at the carrier, which has lagged rivals Delta Air Lines and United Airlines in profitability and punctuality.

Ahead of the picket on Wednesday night, American CEO Robert Isom sought to calm frustrated employees and listed improvements the carrier expects this year, including a jump in profits as well as improvements to schedules and new cabins.

“We look forward to working with all of you to make it happen,” Isom said in a video message filmed at the airline’s Fort Worth, Texas headquarters.

The picket comes days after the Association of Professional Flight Attendants, which represents American’s 28,000 cabin crew members, issued a vote of no confidence in Isom, which the union said was its first such move. The chief executive was also criticized by the pilots’ union, which sought a meeting with the airline’s board, of which Isom is a member, to discuss the problems. Unions for pilots, flight attendants and mechanics have all recently said the company needs to do better to improve reliability and financial results.

Advertisement

The protest is an unusual move outside of contract negotiations.

The signals from the labor groups have increased pressure on Isom, who took the helm nearly four years ago, and American’s leadership team, which is investing in cabin upgrades, bigger airport lounges and other on-board products.

Last month, American forecast stronger revenue and profits for 2026 and said it expects to report adjusted earnings per share of as much as $2.70, up from an adjusted 36 cents last year.

American is in the middle of a revamp that it hopes will help revive profits with more modern airplane cabins that command higher fares, which is especially important as coach-class fares have dropped. It has also built bigger lounges and added free Wi-Fi for customers.

Advertisement

For the first 11 months of the year, American ranked eighth in punctuality with a 73.7% on-time rate, according to the Department of Transportation. It is now adjusting its schedules, including at its massive Dallas-Fort Worth International hub where it is spreading out flights more throughout the day.

But it has a long way to go. In 2025, American posted net income of $111 million compared with Delta’s $5 billion and more than $3.3 billion from United. The lower profits meant a smaller profit-sharing pool for employees, which staff members have complained about.

In a town hall with employees last month, Isom noted that American’s pilots, flight attendants and other groups have recently sealed new labor contracts that have meant higher wages compared with their counterparts at rival United. But he said he was disappointed by the profit-sharing.

The flight attendants have also said they were frustrated with American’s struggles to recover from major winter storms, which left some crew members without a place to sleep.

Advertisement

“This airline is headed down a path that puts our careers at risk,” the flight attendants’ union said in a notice about the picket. “Now is the time for Flight Attendants to stand together and show up in protest. American Airlines needs real accountability, decisive action, and leadership that will put this airline back on a competitive path.”

Isom is also trying not only to win support of frontline crews but also to rally higher-ups. Last week, at Globe Life Field in Arlington, Texas, Isom spoke to about 6,000 managers about the years ahead as the airline turns 100.

“We’ve filled an entire Major League Baseball field with this proud and talented team. The best in the industry,” he said, according to a transcript of his remarks, which were seen by CNBC. “It’s incumbent on all of us to build on our progress … and to ensure that we grow profitability so American is around for the next 100 years.”

Read more CNBC airline news

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Top Insurance Brokers: Bank of America Ranks Baldwin, Ryan Specialty as Leaders

Published

on


Top Insurance Brokers: Bank of America Ranks Baldwin, Ryan Specialty as Leaders

Continue Reading

Business

Heard on the Street Tuesday Recap: More AI Disruption

Published

on

Heard on the Street Tuesday Recap: More AI Disruption

Heard on the Street Tuesday Recap: More AI Disruption

Continue Reading

Business

Oatly’s North America struggles continue

Published

on

Oatly’s North America struggles continue

Company comments on new US Dietary Guidelines. 

Continue Reading

Business

Tesco plans to give under-18s Clubcard access this year

Published

on

Tesco plans to give under-18s Clubcard access this year

Consumer outlet Which? has been campaigning on access to loyalty schemes, calling it a “huge win for shoppers”.

Continue Reading

Business

Sanofi ousts CEO Hudson after stalled turnaround at vaccine giant

Published

on

Sanofi ousts CEO Hudson after stalled turnaround at vaccine giant


Sanofi ousts CEO Hudson after stalled turnaround at vaccine giant

Continue Reading

Business

Bank of America Accused of ‘Reckless Disregard’ in Jeffrey Epstein Sex Trafficking Case

Published

on

Britain's King Charles III delivers a speech from the Throne to open the first session of the 45th Parliament of Canada

A federal judge has ruled that a lawsuit accusing Bank of America of ignoring warning signs tied to Jeffrey Epstein’s sex trafficking can move forward, saying the claims are strong enough to be heard in court.

US District Judge Jed Rakoff said Wednesday that allegations the bank “recklessly disregarded” information about Epstein’s conduct were sufficient to allow a proposed class action lawsuit to proceed.

The decision explains his earlier January 29 ruling that lets alleged victims pursue two key claims against the bank.

The lawsuit accuses Bank of America of knowingly benefiting from Epstein’s sex trafficking and of obstructing enforcement of the federal Trafficking Victims Protection Act.

Advertisement

According to Reuters, the judge did not rule on whether the bank is guilty. Instead, he found that the claims deserve further review at trial, which is scheduled for May 11.

In a detailed 42-page opinion, Rakoff wrote that the plaintiff, identified as Jane Doe, “plainly alleges” that Bank of America provided non-routine banking services that helped Epstein.

According to the complaint, the bank allowed Doe to become a “premier” customer and move large amounts of money, despite allegedly having “every reason to know” Epstein was involved in the transfers and in sex crimes.

Judge: Bank of America ‘Turned Blind Eye’

Rakoff also said Doe plausibly claimed that the bank “turned a blind eye” to media reports about Epstein.

He pointed to questions about “the way large transfers passed in and out of an account allegedly owned by an impecunious young woman.”

The judge added that one bank employee, who previously worked with Epstein at other major banks, allegedly had “direct personal knowledge” of Epstein’s sex trafficking, which could expose Bank of America to civil liability, US News reported.

Advertisement

The lawsuit claims the bank continued doing business with Epstein until his arrest in July 2019 because profits were placed above protecting victims.

Epstein died the following month in a Manhattan jail cell while awaiting trial. His death was ruled a suicide by the city’s medical examiner.

Bank of America, based in Charlotte, North Carolina, said it looks forward to a full review of the facts.

The judge dismissed four other claims against the bank and threw out all claims in a similar lawsuit against Bank of New York Mellon.

Advertisement

In 2023, Epstein accusers reached settlements totaling $290 million with JPMorgan Chase and $75 million with Deutsche Bank. Neither bank admitted wrongdoing.

Originally published on vcpost.com

Advertisement
Continue Reading

Business

Civil service pension backlog 'overwhelmed' Capita, boss says

Published

on

Civil service pension backlog 'overwhelmed' Capita, boss says

Thousands of retiring civil servants have been left without pension payments causing hardship for some.

Continue Reading

Business

AI safety leader says 'world is in peril' and quits to study poetry

Published

on

AI safety leader says 'world is in peril' and quits to study poetry

It comes in the same week an OpenAI researcher resigned amid concerns about its decision to start testing ChatGPT ads.

Continue Reading

Business

Earnings call transcript: Comstock Resources Q4 2025 beats forecasts, shares dip

Published

on


Earnings call transcript: Comstock Resources Q4 2025 beats forecasts, shares dip

Continue Reading

Business

Thousands queue as beauty store arrives on island of Ireland

Published

on

Thousands queue as beauty store arrives on island of Ireland

Almost 2,000 people joined the queue for the opening of a new store in Belfast this morning.

Continue Reading

Trending

Copyright © 2025