American CEO Takes Swipe at Competition Over AI Pricing

American CEO Robert Isom waded into the growing debate around the use of artificial intelligence to determine airline ticket prices.

Zach Vasile

Friday, July 25, 2025 at 01:05 PM ET

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Edited By:

Ryan Ewing

An American Boeing 737-800. (Photo: AirlineGeeks | William Derrickson)

American Airlines CEO Robert Isom waded into the growing debate around the use of artificial intelligence to determine airline ticket prices during an earnings call Thursday and appeared to knock a specific competitor in the process.

American executives were nearing the end of a media question-and-answer session when a reporter asked Isom how he felt about a rival airline – likely a reference to Delta – experimenting with AI-informed pricing, and if American had plans to do the same.

“I appreciate the question because, quite frankly, I think that some of the things I’ve heard are just not good,” he started.

Isom said American is already experimenting with artificial intelligence and plans to use the technology to improve operations and efficiency. It will also play a role in the customer experience, he added, and could be used to make passengers aware of new amenities, or to help them navigate a service disruption.

But using AI to manipulate prices, Isom said, would be a bridge too far.

Delta A321neo — A Delta Airbus A321neo. (Photo: Shutterstock | Robin Guess)

“Of course we’re going to find ways to get our product in front of consumers,” he continued. “But consumers need to know that they can trust American. This is not about bait and switch. This is not about tricking. And others that talk about using AI in that way, I don’t think it’s appropriate, and certainly, for American, it’s not something we will do.”

Industry Rift

Delta has faced criticism from some segments of the flying public as well as lawmakers after President Glen Hauenstein delivered a glowing review of an early AI pricing system during an earnings call on July 10. The carrier is working with technology company Fetcherr to test and expand the AI program, which as of this month, was guiding prices for about 3% of Delta’s domestic network.

The airline plans to boost that figure to 20% by the end of the year.

“We’re in a heavy testing phase,” Hauenstein said on the call. “We like what we see. We like it a lot and we’re continuing to roll it out. But we’re going to take our time and make sure that the rollout is successful, as opposed to trying to rush it and risk that there are unwanted answers in there. So, the more data it has and the more cases we give it, the more it learns.”

Delta is the first U.S. airline to publicly disclose that it is using AI for dynamic pricing. It made the announcement at its Investor Day in November, when about 1% of the carrier’s network was being priced by Fetcherr tools.

The airline has said the implementation of AI-informed pricing will be a “multi-year, multi-step process,” with controls in place to protect the customer experience.

On Monday, three Democratic senators sent a letter to Delta CEO Ed Bastian seeking more information about the AI pricing system. The lawmakers asked how Delta trains its AI model, how many passengers are currently buying tickets priced by AI, and how the carrier plans to increase its use of the technology. They also want to know what Delta routes will be affected and if the airline is targeting specific customer access points, such as the Fly Delta mobile app or airport kiosks, for enhanced testing.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.

China Airlines Announces New U.S. Route

China Airlines currently flies nonstop to New York, Los Angeles, San Francisco, Seattle, and Ontario, California, as well as Vancouver, Canada.

Zach Vasile

Friday, July 25, 2025 at 11:25 AM ET

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Edited By:

Ryan Ewing

A China Airlines Airbus A350-900. (Photo: AirlineGeeks | Fabian Behr)

Taiwan-based China Airlines is set to expand its North American network later this year with a brand-new route.

Starting Dec. 3, the carrier will fly three times weekly between Taipei and Phoenix, its sixth destination in the U.S. Flights from Taipei to Phoenix will be nonstop, but flights departing Phoenix will stop in Los Angeles before continuing on to Taipei.

China Airlines said it will be the first Asian carrier to fly to Phoenix. It plans to operate the route using an Airbus A350-900.

Airline officials said the new service will complement an existing partnership with Southwest, which has a hub in Phoenix. Because of the carriers’ interline agreement, passengers traveling from Taiwan to U.S. destinations beyond Phoenix will be able to book their entire trip through a single point of sale and board their connecting flight in the same terminal they arrived in.

China Airlines currently flies nonstop to New York, Los Angeles, San Francisco, Seattle, and Ontario, California, as well as Vancouver, Canada. The carrier has announced plans to increase the frequency of its service to New York and intends to relocate to the new Terminal One at JFK when it opens next year.

Zach Vasile

Southwest Selling Some 737-800 Jets

As Boeing has increased the delivery of new 737 MAX 8 aircraft, Southwest said Thursday that it will retire roughly 55 aircraft in 2025.

Ryan Ewing

Friday, July 25, 2025 at 10:08 AM ET

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Edited By:

Ryan Ewing

A Southwest Boeing 737-800 (Photo: Shutterstock)

Southwest is selling a handful of Boeing 737-800 aircraft as the carrier drops its full-year profit plan. The Dallas-based airline reported its second-quarter earnings on Thursday.

Earlier this year, Southwest leadership said the airline was looking to sell 10 737-800s. The carrier now plans to sell five 737-800s in the second half of 2025.

The airline has a total of 203 737-800s, which have an average age of 10 years. As Boeing has increased the delivery of new 737 MAX 8 aircraft, Southwest said Thursday that it will retire roughly 55 aircraft in 2025.

More Aircraft Sales

Southwest’s chief financial officer, Tom Doxey, added during the carrier’s second-quarter earnings call that more aircraft sales are in the pipeline.

A Southwest 737-800 on final approach to Los Angeles. (Photo: AirlineGeeks | William Derrickson)

“With these incremental deliveries, we now expect to retire roughly 55 aircraft in 2025, an increase of about five from the previous estimate,” he said. “And this also includes five 737-800 aircraft that we expect to sell this year. And just recently, we also executed agreements for the sale of eight 737-800 aircraft that will occur in the first half of 2026. And we’re in the process of negotiating additional sales transactions.”

The airline hopes to become an all-737 MAX operator by early 2030, retiring 737-700 and 737-800 aircraft.

Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.

Etihad Takes Delivery of First Airbus A321LR Aircraft

Officials from the two companies marked the handover with a ceremony at Airbus’ facility in Hamburg, Germany, earlier this week.

Zach Vasile

Friday, July 25, 2025 at 09:16 AM ET

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Edited By:

Ryan Ewing

Etihad's first Airbus A321LR. (Photo: Etihad)

Emirati flag carrier Etihad on Thursday took delivery of its first Airbus A321LR.

Officials from the two companies marked the handover with a ceremony at Airbus’ facility in Hamburg, Germany.

Etihad has agreed to purchase a total of 30 A321LRs. Nine more are expected to be delivered before the end of the year.

“Today marks an extraordinary moment for Etihad as we welcome an aircraft that changes everything we thought possible on a single-aisle plane,” said Etihad CEO Antonoaldo Neves. “The A321LR enables us to serve more destinations with the same premium experience our guests expect across all cabins, perfectly embodying our commitment to delivering luxury at every altitude.”

Airline officials said the aircraft delivered this week will enter commercial service in August, operating between Abu Dhabi and Phuket, Thailand. Additional A321LRs will be used to fly routes to Bangkok, Copenhagen, Düsseldorf, Paris, Milan, and Zurich, among other destinations.

Etihad’s A321LRs come with premium First Suites, which include a lie-flat bed, sliding privacy door, and 20-inch 4K screen. Previously, First Suites were only available on the carrier’s widebody jets. Behind the First Suites are 14 Business-class seats in a 1-1 configuration and 144 Economy-class seats.

All passengers will have access to high-speed wireless internet provided by Viasat.

Zach Vasile

FAA’s Bedford Rules Out Mechanical Problem With Boeing Fuel Switches in Air India Crash

FAA Administrator Bryan Bedford said Thursday that the June crash of an Air India flight does not appear to have been caused by a mechanical problem.

Zach Vasile

Friday, July 25, 2025 at 06:30 AM ET

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Ryan Ewing

An Air India Boeing 787 Dreamliner departing London Heathrow. (Photo: James Dinsdale)

FAA Administrator Bryan Bedford said Thursday that the June crash of an Air India flight that killed 260 people does not appear to have been caused by a mechanical problem with the aircraft’s fuel control switches, which have emerged as a major focus in the Indian government’s investigation into the disaster.

“We can say with a high level of confidence it doesn’t appear to be a mechanical issue with the Boeing fuel control unit,” Bedford told reporters at the Oshkosh Air Show in Wisconsin, according to Reuters.

He said FAA employees have tested the devices and inspected them on working aircraft.

“We feel very comfortable that this isn’t an issue with inadvertent manipulation of fuel control,” Bedford added.

The Boeing 787 Dreamliner involved in the accident, operated as Air India Flight 171, lost altitude shortly after taking off from an airport in Ahmedabad, India, and crashed into the campus of a medical college. All but one of the 242 passengers on the aircraft were killed, and 19 more people were killed on the ground.

A preliminary report released by India’s Aircraft Accident Investigation Bureau earlier this month found the 787’s fuel control switches, which feed fuel to the engines, were moved from the “Run” to “Cutoff” position, one right after the other. As a result, the engines shut down mid-climb.

The cockpit voice recorder captured one pilot asking the other why he turned off the fuel switches, and the second pilot responded that he did not. The switches were then reversed, and the engines were in the process of coming back online when the aircraft crashed.

The AAIB report referenced a 2018 advisory from the FAA, which encouraged airlines operating Boeing aircraft to inspect the locking mechanism on the fuel switches to ensure they could not be moved by accident. Air India did not follow this guidance, the report stated.

The FAA responded to the report by saying that its 2018 advisory was based on information that fuel control switches were installed with the locking feature disengaged. This does not make the devices themselves unsafe, the agency has emphasized, and on July 11 the FAA sent a continued airworthiness notification to all operators of Boeing aircraft worldwide.

Air India this week completed a check of the fuel switch locks on all the 787s and 777s in its fleet and found no issues.

Zach Vasile

American Projects Potential Third-Quarter Loss, Restores Full-Year Guidance

American Airlines on Thursday warned of a potential financial loss in the third quarter of 2025 and issued cautious, wide-ranging full-year guidance.

Zach Vasile

Thursday, July 24, 2025 at 02:41 PM ET

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Edited By:

Ryan Ewing

An American Boeing 737-800. (Photo: AirlineGeeks | William Derrickson)

American Airlines on Thursday warned of a potential financial loss in the third quarter of 2025 and issued cautious, wide-ranging full-year guidance to replace the forecast it pulled in April amid uncertainty over U.S.-imposed tariffs.

The carrier said it now expects a third-quarter loss between 10 cents and 60 cents per diluted share. For the full year, results per share could be anywhere between a 20 cent loss and an 80 cent profit.

“The company believes the top end of the range is achievable if demand in the domestic market continues to strengthen and only expects to be at the bottom end of the range if there were to be macro weaknesses that are not seen today,” the airline said in a statement.

Like rivals United and Delta, American said it sees some green shoots as demand for air travel slowly stabilizes. Unlike its competitors, however, American seemed to weigh more heavily the possibility that reduced demand from earlier this year could continue to hurt earnings, or that broader global trends could once again upset the industry’s expectations.

“July’s been tough,” CEO Robert Isom said on an earnings call Thursday morning. “Really hit hard by the uncertainty during the primary booking period for those that wanted to travel in July.”

“There’s a lot to go and good reason to have a lot of optimism for some of the trends that we’re seeing going from July into August and September and into the fourth quarter,” he continued. “But also, look, we’ve had a lot of volatility in the business so far and we want to be mindful of that as we forecast as well.”

Still, American officials said they’re optimistic that improved customer service, increased premium offerings, and new international routes will help the airline regain its momentum.

American’s second-quarter results were roughly in line with industry expectations. The carrier reported net income of $599 million, or 91 cents per diluted share, down from $717 million, or $1.01 per diluted share, in the second quarter of 2024. Operating revenue moved up slightly from $14.33 billion to $14.39 billion over the same interval.

Zach Vasile

Southwest’s Earnings Slide, But Carrier Says Travel Demand Improving

Southwest reported lower quarterly profits and revenue on Wednesday but said travel demand is stabilizing after a difficult start to 2025.

Zach Vasile

Thursday, July 24, 2025 at 11:25 AM ET

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Ryan Ewing

A Southwest 737-800 takes off from Los Angeles. (Photo: AirlineGeeks | William Derrickson)

Southwest reported lower quarterly profits and revenue on Wednesday but said travel demand is stabilizing after a difficult start to 2025.

The airline reported net income of $230 million, or 43 cents per share, down from $370 million, or 58 cents per share, in the second quarter of 2024. Revenue declined from $7.35 billion to $7.24 billion over the same interval.

Southwest pulled its full-year guidance in April as tariffs announced by the Trump administration rattled the global airline industry. U.S. carriers saw weakened demand for months as business and leisure travelers rethought their plans.

But after that rocky start, domestic leisure travel has largely stabilized, the airline said, setting the stage for a sunnier second half of 2025.

“While early, recent industry demand shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year,” Southwest officials said.

The carrier also announced a $2 billion share buyback program, expected to be completed over the next two years.

Southwest is stepping away from its former low-cost model and altering many of its longstanding policies in an effort to boost profitability and better compete with legacy airlines like United, Delta, and American. It recently began charging for checked bags and will implement assigned seating in January 2026, with options for seats with extra legroom.

Airline officials said the new bag fees have generated more revenue than initially expected.

Zach Vasile

Leasing Company Places Order For 90 Airbus Aircraft

The company currently has 145 A320neo-family aircraft in its delivered fleet, and commitments for a further 358, including this week’s order.

Zach Vasile

Thursday, July 24, 2025 at 10:30 AM ET

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Ryan Ewing

An Airbus A330neo demonstrator aircraft. (Photo: AirlineGeeks | William Derrickson)

Aircraft leasing giant Avolon on Thursday placed an order for 90 new Airbus passenger jets.

In a statement, the companies said Avolon agreed to purchase 75 A321neos and 15 A330neos. The order includes purchase rights for another 25 A321neos and options to purchase 15 more A330neos.

The aircraft under this order are expected to be delivered through 2033.

“This order demonstrates our strong confidence in the long-term demand for new aircraft,” said Avolon CEO Andy Cronin. “Our scale and balance sheet position us to support our airline customers’ expansion and replacement needs into the next decade. Both the A321neo and A330neo are in high demand, and we expect this to continue given the long-term growth trajectory for the aviation sector.”

Avolon, which is based in Dublin, provides aircraft lease, lease management, and financing services to airlines and airline investors. Its customers include Delta, Southwest, Frontier, Porter, Allegiant, and Virgin Atlantic, among many others.

The company currently has 145 A320neo-family aircraft in its delivered fleet, and commitments for a further 358, including this week’s order. Its total fleet numbers over 1,000 aircraft.

Zach Vasile

Report Finds Pilot Error May Have Occurred Before Jeju Air Crash

A new briefing from South Korea’s Aviation and Railway Accident Investigation Board hinted that the pilots flying South Korea’s Jeju Air flight 2216 may have made errors before the fatal crash.

AirlineGeeks.com Staff

Thursday, July 24, 2025 at 06:30 AM ET

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Zach Vasile

A Jeju Air 737-800 in Seoul. (Photo: AirlineGeeks | Ben Suskind)

A new briefing by South Korea’s Aviation and Railway Accident Investigation Board (ARAIB) hinted that the pilots flying South Korea’s Jeju Air flight 2216 may have made human errors before the fatal crash.

The Boeing 737-800 veered off of a runway while landing at Muan International Airport on Dec. 29, 2024. All but two of the 181 people on the aircraft were killed in the crash.

According to an Associated Press report, investigative findings on the aircraft’s engines were intended to be discussed at a press conference on Saturday. The conference was canceled, however, after relatives of crash victims were told about the findings earlier that day – prompting public backlash over a perceived shift of blame from government institutions to the pilots.

A copy of the unpublished report obtained by AP stated that a South Korean-led investigation team found no manufacturer defects with the 737’s engines, which were built by French aerospace company Safran and General Electric.

The report stated that investigations of the engines found that the aircraft’s right engine had serious internal damage due to a bird strike. From the aircraft’s cockpit voice recorder and flight data recorder, investigators deduced that the pilots switched off the aircraft’s left engine before the crash.

According to AP, the report didn’t state why the pilots shut off the less-damaged engine and “stopped short of saying whether it was an error by the pilots.”

AirlineGeeks.com Staff

AirlineGeeks.com was founded in February 2013 as a one-person blog in Washington D.C. Since then, we’ve grown to have 25+ active team members scattered across the globe. We are all here for the same reason: we love deep-diving into the fascinating realm of the airline industry.

United Ending Havana Route

United later added a flight to Havana from Newark Liberty International Airport in New Jersey, but this service was dropped in 2023.

Zach Vasile

Wednesday, July 23, 2025 at 04:30 PM ET

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Edited By:

Ryan Ewing

A United Boeing 737-800. (Photo: Shutterstock)

United is ending its nonstop service between Houston and the Cuban capital of Havana.

The carrier made the announcement on Friday through United Jetstream, its travel management portal. It said the last flights between Houston and Havana will take place Sept. 1.

The airline did not reply to a request from AirlineGeeks seeking additional details about the cancellation.

United’s route is the only nonstop connection between Houston and Havana, and the only U.S. flight to Cuba not based in Florida. The carrier uses Boeing 737-800s for the 930-mile journey.

United launched its service to Havana in 2016 amid a rare diplomatic thaw between the U.S. and Cuba. It was the first nonstop flight between Texas and Cuba in over 50 years.

United later added a flight to Havana from Newark Liberty International Airport in New Jersey, but this service was dropped in 2023. The carrier cited fluctuating demand and difficult route economics.

U.S. citizens are prohibited from visiting Cuba as tourists, but travel is permitted under 12 approved categories, including family visits, research, professional meetings, humanitarian work, religious activities, athletic competitions, and official business of the U.S. government. These exemptions allow thousands of people to fly between the U.S. and Cuba every week.

Zach Vasile