American Airlines shakes up leadership to close profit gap


CEO Isom acknowledged a “meaningful gap” between American’s current performance and where he said the airline should be. — Reuters

CHICAGO: American Airlines is reorganising senior management, broadening oversight across its commercial and operations teams and adding a former Spirit Airlines executive to run technical operations, as chief executive officer Robert Isom faces pressure to close the carrier’s profit gap with rivals.

In a staff memo seen by Reuters, Isom acknowledged a “meaningful gap” between American’s current performance and where he said the airline should be.

He said the moves were the “first step in a series of actions” aimed at strengthening the team, improving alignment and accelerating execution.

The company’s profit gap with Delta Air Lines and United Airlines was already wide before the recent fuel shock that followed the United States-Israeli attacks on Iran that kicked off a war that has caused energy prices to surge.

Former Spirit Airlines chief operating officer John Bendoraitis will join American to lead technical operations, one of a number of moves to try to boost performance.

Chief commercial officer Nat Pieper will add marketing and branding to his duties, chief customer officer Heather Garboden will take on reservations and service recovery, and JC Gulbranson will add airports and planning.

Chief communications officer Ron DeFeo is stepping down, according to the memo. Caroline Clayton will oversee communications and Steve Neuman government affairs. Garboden, Gulbranson, Clayton and Neuman will join American’s senior leadership team.

American expects roughly break-even results in 2026, as higher jet fuel prices ate up gains from stronger revenue. Delta and United expect solid profits. — Reuters

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