American Airlines Faces Leadership Change and Financial Struggles, Says CEO

By Madz Dizon

May 29 2024, 21:09 PM EDT

American Airlines Suspends Employees Involved in Removal of Black Passengers Due to False Body Odor Complaint — American Airlines has placed several workers on leave after removing Black passengers from a flight in Phoenix due to a complaint of body odor. Kevin Dietsch/Getty Images

American Airlines' CEO recently addressed the departure of the carrier's commercial chief in his latest public statement.

In a recent announcement, the Dallas-based airline revealed that Vasu Raja would resign from his position next month. His departure came simultaneously as a downgrade in American Airline's financial outlook for the current quarter, Skift reported.

American Airlines' CEO Acknowledges Company's Need to Change Leadership

Addressing the crowd at the Bernstein Strategic Decisions Conference on Wednesday (May 29), American CEO Robert Isom expressed his appreciation for his departing colleague while emphasizing the importance of implementing changes.

The departing Chief Commercial Officer managed American Airlines' contentious adjustments to its ticket distribution channels. Following the move, the American Society of Travel Advisors (ASTA) filed a formal complaint regarding the carrier's distribution processes.

Isom acknowledged that the changes are currently being reviewed, recognizing that the company acted hastily and failed to carry out the plan effectively.

This change in opinion marks a significant shift for the airline. During the Skift Aviation Forum last October, Isom expressed confidence in the strategy.

He emphasized the importance of providing customers with a seamless shopping experience, where they can access all the necessary information without relying on multiple intermediaries.

American Airlines' Profit Slightly Slumps

Recognizing Raja's unconventional and occasionally contentious approach, Isom emphasized that the airline would maintain its daring approach to decision-making.

Isom confirmed that ongoing efforts are being made to enhance Americans' performance in this particular field. He expressed his satisfaction with the team assembled for the project.

According to Reuters, American Airlines has revised its second-quarter adjusted earnings forecast to $1 to $1.15 per share, which is lower than the previous range of $1.15 to $1.45 per share. At 10 am EDT on Wednesday, American's shares had experienced a significant decrease of approximately 15%.