Facing a shifting economic landscape, American Airlines CEO Robert Isom is calling on U.S. policymakers to embrace measures that stimulate travel demand, both domestically and internationally. Speaking during the airline's first quarter 2025 earnings call, Isom emphasized the urgent need for the United States to position itself as a welcoming destination, particularly ahead of major global events like the FIFA World Cup 2026, for which American Airlines is a key sponsor.

"This is about making America the preferred choice for international travelers," Isom said. He outlined specific initiatives, including expanding visa-free travel programs, reducing visa processing times, and accelerating the use of advanced technologies to streamline airport experiences. Such efforts, he stressed, are essential not only for the travel industry but also for the broader U.S. economy, which heavily benefits from tourism and international business.

Isom also highlighted critical infrastructure challenges, particularly the modernization of the country's aging air traffic control (ATC) system. He warned that without significant updates, ATC could become the primary bottleneck limiting growth across the aviation sector over the coming years.

Despite seeing positive momentum at the end of 2024, American Airlines has adopted a cautious stance for 2025. The carrier plans to manage capacity carefully, potentially reducing off-peak flights, retiring older aircraft, deferring new deliveries, and returning leased planes to navigate the uncertain environment. "We intend to stay nimble," Isom said, "and adjust our network efficiently without compromising quality."

Reflecting industry-wide caution, American Airlines has withdrawn its full-year guidance, aligning with peers who are also waiting for a clearer economic outlook. For the second quarter, the airline projects a modest capacity increase of 2% to 4% compared to the previous year but remains wary of broader market softness.

Domestically, American is observing weakening demand among its most price-sensitive travelers, while international travel continues to perform strongly, though the outlook post-summer remains unclear. Business travel, however, has shown resilience, with the airline describing corporate demand as "vibrant." This recovery is credited partly to American’s revamped distribution strategy after a major tactical reset in 2024.

Tariffs and supply chain pressures present additional challenges. Although American expects to receive 40 to 50 new aircraft this year, including the long-awaited Airbus A321XLRs, Isom expressed concern over potential cost increases due to trade tensions. "Aircraft are expensive enough," he remarked. "Extra costs are not something we — or our customers — can absorb."

Financially, the airline posted a net loss of $473 million for the first quarter, compared to a $312 million loss during the same period last year. Total operating revenues stood at $12.6 billion, a slight dip year-over-year, impacted by the American Eagle Flight 5342 incident earlier in 2025. Nevertheless, American remains optimistic, buoyed by strong loyalty program growth and solid premium ticket sales.

Isom closed the call with a note of cautious optimism: "While uncertainty defines today’s environment, certainty will restore the economy — and when it does, we are ready to accelerate."