American Airlines' New CEO Promises Reliability Entering Peak Travel Season: CNBC

  • This summer, American Airlines Group Inc’s AAL new CEO, Robert Isom, is aiming for one thing: reliability. Last year, the airline grew faster than its larger competitors, and passengers occasionally experienced extensive disruptions due to routine challenges such as weather and understaffing, reported CNBC.
  • Robert Isom, who took over as CEO of America’s largest airline on March 31, said his top priority is ensuring that passengers can rely on American this summer and beyond.
  • “People really need to feel like they have control of their itineraries and we give them control by making sure they get to where they want to go on time. I just can’t be any more blunt about it than that,” Isom told pilots during a company town hall last week, which CNBC reviewed. “Other airlines are really struggling.”
  • Earlier this month, American’s partner in the Northeast U.S., JetBlue Airways Corporation JBLU, told staff it would cut as much as 10% of summer flying to avoid repeats of mass cancellations and delays.
  • Related: JetBlue, Alaska Airlines Reduce Summer Schedules Aiming For Smoother Summer
  • American’s West Coast code-sharing partner, Alaska Air Group, Inc ALK, announced a 2% capacity cut this spring because of a shortage of pilots.
  • After two years of the pandemic, air travel has increased, and passengers have demonstrated a willingness to spend more for tickets, which is helping carriers cover an increase in fuel costs.
  • Isom mentioned that domestic travelers make up for lower demand for business and international travel. He added that AAL has enough pilots, flight attendants, mechanics, and customer support representatives to handle summer traffic.
  • American said that Boeing’s Co BA woes had forced it to reduce some long-haul international flying.
  • Price Action: AAL shares are trading lower by 0.53% at $18.90 during the premarket session on Monday.
  • Photo via Wikimedia Commons
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