There will soon be a shake-up at American Airlines (NASDAQ:AAL)
The carrier announced Tuesday that CEO Doug Parker is stepping down next year after two decades running airlines and will be replaced by the carrier’s president, Robert Isom, on March 31.
It’s the second leadership change for a major airline set for next year. The new CEOs will be tasked with driving airlines’ recovery from the COVID pandemic’s toll. Southwest Airlines (NYSE:LUV) CEO Gary Kelly will step down in February, handing the reins to another long-time executive, Bob Jordan, in February.
Parker will continue as chairman of American’s board.
"It likely would have happened sooner, but the global pandemic — and the devastating impact it had on our industry — delayed those plans," Parker said in a note to staff on Tuesday.
Parker’s career as an airline CEO spans 20 years, bookended by two crises: 9/11 and the COVID pandemic. In the latter, Parker helped win $54 billion in federal aid to cover payroll expenses.
Isom, who has a three-decade career in aviation, will become CEO of an airline that is still losing money as it tries to rebuild a business that collapsed during the pandemic.
In the first three quarters of 2021, American has lost almost $4.8 billion after losing $9.5 billion last year when COVID forced countries around the world to ban flights and millions of would be travelers avoided taking flights.
AAL shares took flight 36 cents, or 2%, to $18.29.
