American Airlines Denies $1B Chicago O'Hare Loss Claim by United CEO

AALAAL

American Airlines disputed United CEO Scott Kirby's claim it will lose $1 billion at Chicago O'Hare this year while United profits exceed $500 million, calling the assertion inaccurate. The rebuttal underscores intensifying hub competition and may highlight operational cost pressures for American at its second-largest airport.

1. Travel Waivers Rolled Out as Winter Storm Fern Approaches

American Airlines has issued broad travel waivers covering flights scheduled between January 24 and January 27 for customers affected by Winter Storm Fern, which meteorologists predict will deliver up to 12 inches of snow, ice accumulation of a quarter-inch and sustained winds of 30–40 mph across 24 states from the Plains to New England. The carrier will allow fee-free changes or full refunds for itineraries originating, transiting or terminating at its hubs in Chicago, Dallas/Fort Worth, Miami and Charlotte. Operations teams have pre-positioned 150 deicing vehicles at 10 key airports and are coordinating with the Air Traffic Control System Command Center to secure additional arrival and departure slots, while reserve crew pools have been bolstered by 20% to maintain schedule integrity.

2. American Airlines Rebuts Claims on ORD Losses

In response to United Airlines CEO Scott Kirby’s assertion that American Airlines will incur a $1 billion operating loss at Chicago O’Hare International Airport this year, AAL executives highlighted that the carrier recorded a $650 million operating profit at O’Hare in 2025 and has increased local market share by 3 percentage points since launching its Fort Worth–Chicago service downtown. The airline pointed to a 6% year-over-year increase in connecting passenger volumes through its O’Hare hub during peak holiday travel and said ancillary revenues per passenger at ORD have grown 8% over the past 12 months, driven by higher checked-bag fees and onboard sales.

3. Key Metrics Under the Microscope Ahead of Q4 Results

Analysts covering American Airlines estimate that capacity, measured in available seat miles (ASMs), rose by 4.2% in Q4 compared to the year-ago period, while systemwide passenger unit revenues (also known as PRASM) are projected to be up around 2.5%. Fuel consumption per available seat mile (fuel-ASM) is expected to edge lower by 0.8% as newer Airbus A321neo and Boeing 737 MAX aircraft accounted for 15% of departures, improving efficiency. Cost per available seat mile excluding fuel (CASM-ex) is forecast by several firms to increase 1.5%, reflecting continued wage inflation and maintenance scheduling for 95 additional regional and mainline aircraft delivered in the quarter.

Sources

FRZ