Reported 4 months ago
American Airlines is revising down its second-quarter financial forecasts and has announced the departure of its chief commercial officer, leading to a more than 14% drop in its shares and causing a decline in other airline stocks as well. The airline now expects adjusted earnings per share in the range of $1 to $1.15, down from the previous forecast of $1.15 to $1.45, with total revenue per available seat mile anticipated to decrease about 5% to 6%. The departure of CCO Vasu Raja comes amid recent changes in the airline's ticketing policy, where customers are required to purchase tickets directly from American Airlines or preferred online travel agencies to earn loyalty points, a move that faced criticism. American Airlines CEO Robert Isom acknowledged the need for a reset, emphasizing the importance of better execution and responsiveness to customer feedback.
Source: YAHOO