Friends,

American Airlines CEO Robert Isom was on CNBC this morning, and while the segment was framed around Wall Street and uncertain forecasts, I heard something else entirely: reassurance.

Yes, airline stocks are under pressure. Yes, storms have caused chaos this summer. And yes, capacity management and consumer demand are still at best wobbly. But if you’re a traveler? This is a good time.

Here’s why:

1. Airlines are getting smarter in competing for your business

Isom made it clear: American has slowed capacity growth and is laser-focused on premium traffic. That means service improvements, added operational scrutiny, and more competitive pricing.

Meanwhile, the corporate travel segment is still lagging—which leaves airlines looking to leisure travelers to fill the gap. That shift has unlocked new routes, better availability, and elite-tier perks that are more broadly available (thanks, Loyalty Points).

2. Disruption is driving innovation (not just frustration)

Summer storms have battered the industry, and American took the brunt—Isom cited over 800 diversions and 5,500 cancellations just in July. But here’s the kicker: they’re responding with real investment. Resilience isn’t a buzzword anymore. From smarter scheduling to better rebooking tech, the pain of irregular operations is fueling change.

Expect tighter operations, more proactive communication, and better digital tools to continue rolling out—it will continue to feel slow and imperfect, but this is a sign of progress.

3. You hold the power in a high-choice world

This is perhaps the biggest takeaway: travelers have never had more leverage. Airlines are competing on product, experience, and loyalty like never before. American’s revamped credit card deal with Citi (coming in 2026) and its ongoing push into premium experiences show where the momentum is heading.

Translation? If you’re points-savvy, schedule-flexible, or simply curious about the world, the travel landscape in 2025 is yours to shape. You're not just a passenger—you’re a buyer in a market that's bending toward you.

Fly well.

P.S. A few other points from Isom’s interview worth flagging:

• 🧭 Unit revenue performance: American has by certain measures outpaced competitors for four straight quarters. This is, in my amateur opinion, corporate deflection to distract from the carrier’s broader underperformance.

• 🌩️ Air traffic control remains a major bottleneck—Isom hinted at this repeatedly. The FAA is understaffed and overwhelmed, which has everyone’s attention.

• 💼 Corporate travel is flat—except at American: While industry-wide business travel hasn’t surged, American is reporting 10% year-over-year growth in managed corporate bookings. This may be more material than it’s given credit for being.

• ✈️ No major CapEx on the horizon: Isom noted American isn’t planning massive aircraft orders or infrastructure spending. Perspective is everything I guess, but their present fleet limitations (widebody delays, etc.) and aircraft reconfiguration schedules are not small CapEx realities by most measures.

NEWS

Q2 results are in at both American Airlines and Southwest Airlines. I’ll have commentary on the latter soon (likely tomorrow).

Interesting note on safety videos.

Tragic crash claimed 48 lives in Russia’s far east.

Interesting blog post on the cost of removing shoes at TSA checkpoints.

Skift podcast analysis of United and Ryanair’s Q2 performance.

Gary Leff writes about Rober Isom’s harsh critique of Delta using AI to price fares.