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• Longtime aide selected for leadership change in sign of stability after COVID-19
• Parker to chair the board even after transition on March 31
American Airlines Group Inc on Tuesday said its longtime Chief Executive Doug Parker is retiring and would hand over reins of the biggest U.S. airline to president Robert Isom on March 31.
The announcement comes as a sign of stability after a chaotic period for the industry, which was heavily affected by the COVID-19 pandemic, sending the shares of the airline operator up nearly 3%.
Although Parker will retire, he will continue to serve as the chair of the board, while Isom will join the company’s board after he takes over as CEO.
Parker, who was named chairman and CEO of American Airlines in 2013, said in a message to employees that the transition might have happened sooner if it was not for the pandemic, Reuters reported.
“I have worked with Robert for two decades, and I am incredibly pleased that he will be the next CEO of American Airlines,” Parker said.
Isom, a longtime airline industry executive, took over as president of American Airlines in 2016 and has overseen the operations, planning, marketing, and pricing.
COVID-19 impact
The management change follows the recovery of the airline industry from the lows hit during the pandemic. However, it is now facing operational challenges due to the threat from Omicron, the new COVID-19 strain.
As business picked up, the company has been struggling with staffing issues and passenger behavior recently. In October, the airline said that it expects costs to continue to pinch profit as revenue remains below pre-pandemic levels.
“We are well-positioned to take full advantage of our industry’s recovery, and now is the right time for a handoff we have planned and prepared for,” Parker said. “I feel extremely fortunate to hand the reins to this clear and capable leader.”
Picture Credit: FT