American Airlines lowers sales outlook, CFO leaving, struggles financially compared to competitors.

From CNBC: 2024-05-28 17:57:48

American Airlines has slashed its sales outlook and let go of its chief commercial officer, Vasu Raja. The airline expects unit revenues to fall up to 6% in the second quarter and reduced adjusted earnings estimates to $1 to $1.15 a share. American Airlines lags behind Delta and United Airlines in financial performance.

United Airlines reiterates its expectation to earn an adjusted $3.75 to $4.25 per share in the second quarter. American Airlines CEO Robert Isom will discuss modifying the ticket distribution strategy to boost bookings on its own platforms. Isom acknowledges the need for adjustments to maximize revenue production and retain cost savings.

Vasu Raja, the former chief commercial officer of American Airlines, has left the company after internal discussions. Raja, who served as the head of network and alliances, did not respond to CNBC’s request for comment. American Airlines is making changes to enhance financial performance and adapt to market dynamics.



Read more at CNBC: American Airlines cuts outlook, says chief commercial officer is leaving