American Airlines: change at the top
Robert Isom CEO from 2022, Doug Parker will be president
The new wave of the global pandemic triggered by the Omicron variant could cause the recovery of air carriers to fail. For this reason, some companies are planning a new strategy to design a different future. In this delicate moment came the news of the resignation of American Airlines CEO, Doug Parker. This will remain president, but will leave the current position from the beginning of next year to Robert Isom. What will happen?
Some industry experts have pointed out that the company is in a phase of decline. In fact, Parker had saved the airline after filing for bankruptcy in 2011, thanks to a merger with Us Airways, a company he led, in 2013. In the years since, consolidation and leaner cost structures have produced unprecedented consistent profits. In 2019 American Airlines had more than $2 billion in net income; today it has $36 billion in debt. Prior to the release of the Omicron variant, executives estimated fourth-quarter revenue to be 80% of that reported in 2019.
Parker helped prove that an air company could create value for its shareholders. It will be up to his successor to confirm, or not, whether this thesis is still valid now in the era of global pandemics.
AVIONEWS - World Aeronautical Press Agency