American Airlines Moving Around Top Management Amidst Problems
American Airlines Group Incorporated has been reorganizing top management amidst operational trouble that has been negatively affecting its reputation and hurting share price in recent months, according to The Wall Street Journal.
Kerry Philipovitch, senior vice president of customer experience, is retiring at the end of the year due to personal reasons, American announced Thursday. Some of her responsibilities will transfer to Senior Vice President David Seymour.
Three other executives are also taking on new responsibilities. President Robert Isom stated that the changes will streamline operations and help boost revenue. Isom continued saying, "American needs to deliver now, plain and simple, on all fronts."
The stock is down 16% this year, compared to the 19.1% gain by the NASDAQ index it is listed on year to date. Competitors, such as United Airlines Holdings Inc. and Delta Air Lines Inc., share prices have both climbed.
American has several problems. Starting with the grounding of its 24 Boeing Co.737 MAX jets since March. American canceled 9,475 flights in the third quarter due to the grounding and estimated that it resulted in a hit of $140 million pretax to profit. Furthermore, countless delays and cancellations have been a result of mechanics attempting to leveraging their necessity in contract negotiations.
American hopes that once the Boeing 737 MAX is back in the air, they will be back on track. For now, the company's struggle continues amidst many issues.