American CEO Parker latest airline chief to exit
American Airlines CEO Doug Parker will retire in March and be replaced by its current president, Robert Isom, as the airline seeks to rebuild after massive losses caused by the pandemic.
Parker, 60, has led Texasbased American since late 2013, when he engineered a merger with smaller US Airways. He will remain as chairman, American said Tuesday.
Isom, 58, has been the heir apparent since becoming American’s president in 2016 after Scott Kirby was forced out and joined United Airlines, where he now serves as the CEO. Isom has overseen American’s operations, including sales and pricing, and its alliances with other airlines.
American struggled through most of the summer with high numbers of canceled and delayed flights. The disruptions were due in large part to staffing issues after American persuaded thousands of employees to leave last year, only to be caught short when air travel recovered faster than expected from the depths of the pandemic.
American posted a profit of $169 million in the third quarter, thanks to nearly $1 billion in federal pandemic relief that covered most of the airline’s payroll costs. Yet its debt has ballooned to more than $36 billion as it borrowed to get through the worst of the pandemic. Airline officials say they will be able to pay down debt once business and international travel recover.
American faces other challenges, including a Justice Department lawsuit that seeks to
cancel an agreement to work with JetBlue Airways in setting schedules and service in the Northeast. Relations with unions, particularly that of the pilots, have worsened under the pressure of the airline’s operational shortcomings.
Parker is the latest CEO of a major U.S. airline to announce his retirement this year. In June, Southwest Airlines Gary Kelly said he would step down, with longtime executive Robert Jordan taking over. Alaska Airlines CEO Brad Tilden was succeeded by Ben Minicucci in April.