American Airlines Revises Outlook as Commercial Chief Makes Unexpected Exit

American Airlines announced on Tuesday, May 28, the drastic reduction of its sales projections for the second quarter, as well as the abrupt exit of Vasu Raja, the company’s chief commercial officer. His departure is anticipated to take place in June.

American Airlines Expects Q2 Unit Sales to Drop 6% Year Over Year

After previously predicting a 3% decrease, American Airlines now anticipates unit sales to fall as high as 6% year over year in the second quarter, as reported by CNBC. Additionally, the carrier reduced its adjusted profits projection for the quarter from $1.15 to $1.45 per share to a predicted range of $1 to $1.15 per share.

Financially, the airline has been struggling lately, falling behind competitors United Airlines and Delta.

American Airlines CEO Robert Isom will reportedly speak at a Bernstein conference on Wednesday morning, May 29. He will explain the carrier’s intention to shift ticket purchases to its own platforms from third-party channels and agents.

During an April earnings call, an analyst asked whether American Airlines has been seeing resistance from corporate clients despite robust business travel growth reported by competitors. Isom acknowledged that the airline may need to make adjustments to the system.

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Raja’s June Departure Confirmed by American Airlines

The carrier’s spokesperson confirmed to CNBC this week that Raja, who has been in his position as commercial chief since April 2022, was not leaving the business despite his recent absence. That changed following some recent internal conversations, according to someone familiar with the subject.

According to a press statement, Raja joined American Airlines in 2004 and started working in sales, planning, and revenue management. Later on, he oversaw the Network and Alliances units of American Airlines as Chief Revenue Officer and Senior Vice President of Network Strategy.

American Airlines Vice Chair and Chief Strategy Officer Stephen Johnson will take over the Commercial department and assist in finding a new head, effective immediately.

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