Despite earning a record revenue of $13.7 billion in the third quarter of 2025, 
American Airlines (AA) claimed a $114 million loss and is now moving to lay off middle management as well as other staff. Speculation is abound as the exact positions subject to cuts were not alluded to by AA.
The airline did say that the majority of affected employees would be from the workforce of its Fort Worth, Texas, headquarters, according to WFAA 8 ABC News.
Who AA Is Giving The Axe
While the official statement references only management and limited staff cuts from departments not associated with flying operations, there have been reports of other layoffs on social media. The thread on one X account, JonNYC, has chronicled updates from individuals witnessing staff be let go in real time.
The post mentions a potential 4% cut from payroll including 500 staff to be let go from 
Dallas/Fort Worth International Airport (DFW) hub. Although adding the caveat that it is unconfirmed. AA employee accounts mention 
Charlotte Douglas International Airport (CLT) in particular having 12 managers walked out with a couple of replacements brought in from LaGuardia Airport (LGA).
The Phoenix area customer service, information technology (IT), and accounting departments have also been supposedly liquidated. Some users recounted hearing that IT jobs would be outsourced to the AA facility in Hyderabad, India. Speculation around the Trump presidential administration’s changes to H1 Visa programs was offered as potential motivation on the X account.
The airline blamed significant weather events and air traffic control (ATC) failures for a large share of the profit shortfall. The company’s third-quarter financial report included this statement regarding the plan for the remainder of the year, as WFAA News recounted:
“By the end of this year, the company expects it will have fully restored its share of indirect revenue that was impacted by its former sales strategy.”
American Airlines In 2025
American boasts the second-largest fleet of commercial aircraft in the world with just over 1,000 jets in its global fleet, per Planespotters.net data. That puts it behind only United Airlines, which has only a couple of dozen more airliners in its gargantuan armada. AA also invested $4 billion into a massive modernization project at DFW to modernize the facilities, amenities, and services, as well as expand capacity.
Despite all of that, the airline remains one of the lowest-ranked carriers by travelers for service satisfaction. Surveys by Study Finds and Vice found that AA is the most hated airline on average by flyers. On top of general displeasure with the carrier’s service and products, the poor safety record of regional jets in recent years, combined with massive disruptions due to weather and ATC influenced the ranking.
American claimed to have invested in technology that made the airline more resilient during the operational fiascos this year, but its impact appears to have been lost on customers. The airline also has a large order for new 737 MAX jets that remains unfulfilled, especially with the MAX 10 uncertified. The new aircraft promise to bring an updated in-flight environment at least but it appears more widespread improvement is needed to make flyers happy.
The Fourth Quarter Outlook
American posted a better result than it originally forecast for the third quarter and currently expects to do better in the fourth quarter as well. The economy class cabin has been the softest in 2025 with low-cost carriers (LCC) like Southwest, Frontier, and Spirit Airlines suffering as full-service airlines perform with more stability.
The Airline Pilot’s Association (ALPA) reported that hiring for aircrew had risen in the first half of 2025 compared to 2024 and projects that gradually increase for the remainder of the year. The “big three,” aka American, United, and Delta Air Lines, accounted for the vast majority of hiring.
American even brought in Nathaniel Pieper as the new Chief Commercial Officer just a week ago. Pieper’s resume includes a successful track record at several airlines in the past, as well as 
oneworld Alliance. The signs point toward a stronger future for AA, but that doesn’t help the employees who are impacted by the current cuts happening around the country.
