July 19, 2024

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American Airlines’ chief commercial officer makes a surprise exit

American Airlines’ chief commercial officer makes a surprise exit

Vasu Raja, American Airlines’ chief commercial officer, will leave the company in June, the American airline said on Tuesday.

News of Raja’s exit comes a week after the airline denied that he was planning to leave the company, amid rumors that he was not present at the airline’s office and was removed by the board of directors who were unhappy with the American revenue strategy.

In a statement by L Flight controller In a news release last week, an American Airlines spokesperson said Raja had been working remotely “for a few weeks while taking care of some personal matters,” but “he is not leaving.”

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The airline did not explain the reason for Raja’s departure or what has changed since last week. It was not clear whether the departure had been decided since last week or otherwise.

In a filing with the Securities and Exchange Commission on Tuesday, American also lowered its financial outlook for the second quarter, saying it now expects revenue to decline by up to 6% compared to the same quarter last year. It previously expected a decline of up to 3% compared to last year.

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The airline has fallen behind major rivals Delta and United in recent months as it has struggled to translate new distribution strategies into improved revenue performance. The airline has recently introduced new policies aimed at incentivizing customers to book tickets directly with the airline or with preferred vendors, instead of using different booking platforms and channels.

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During the airline’s first-quarter earnings call in April, CEO Robert Isom said the airline was still “fine-tuning” the strategy, saying that during the first three months of the year there were “probably some benefits that our competitors took because of some of the changes we made.” “With it.”

Isom is expected to make a presentation at Bernstein’s investor conference on Wednesday, along with executives from United Airlines.

United on Tuesday reaffirmed its previous financial guidance for the quarter, which expected earnings in the range of $3.75 to $4.25 per share.

It was not immediately clear what Raja’s departure would mean for consumers, although he was the main driver behind the company’s new distribution strategy. One way or another, industry watchers are likely to be closely monitoring the potential change in US trend.