Reported 4 months ago
American Airlines CEO Robert Isom announced a reset of the company's sales and distribution strategy after cutting its earnings forecast for the current quarter, leading to a 15% drop in the company's shares. The downbeat outlook was attributed to softer customer bookings due to changes in the sales strategy. Isom mentioned that some changes aimed at increasing direct bookings have been reversed, and the airline will slow its seat capacity growth to address supply-demand imbalances. Despite strong demand for premium travel, airfares in Europe and Asia are plateauing or falling, indicating a slowdown in the post-pandemic travel boom.
Source: YAHOO