Vasu Raja, American Airlines’ chief commercial officer, will leave the company in June, the airline said Tuesday.
News of Raja’s departure comes a week after the airline denied he had any intention of leaving the company, amid rumors that he was not present at the airline’s offices and had been dismissed by the board. dismissed because of dissatisfaction with American’s revenue strategy.
In a statement sent to Aeronautical observer news last week, an American Airlines spokesman said Raja had been working remotely “for several weeks to resolve some personal issues” but “did not leave.”
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The airline did not specify the reason for Raja’s departure or what had changed since last week. It is unclear whether the departure was decided last week or otherwise.
In a filing with the Securities and Exchange Commission on Tuesday, American also lowered its financial outlook for the second quarter, saying it now expects revenue to decline as much as 6% year-over-year. Previously, it was expected to decline by up to 3% compared to last year.
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The airline has trailed major rivals Delta and United in recent months as it has struggled to convert new distribution strategies to improved revenue performance. The airline recently introduced new policies to encourage customers to book directly with the airline or with preferred providers, rather than through various third-party booking platforms and channels. father.
During the airline’s first-quarter earnings call in April, CEO Robert Isom said that the airline was still “refining” its strategy, saying that in the first three months of the year “there could be a number of benefits that our competitors received as a result of some of the changes we made.”
Isom is expected to be at the Bernstein investor conference on Wednesday, along with United Airlines executives.
United on Tuesday reaffirmed its previous financial guidance for the quarter, expecting earnings of $3.75 to $4.25 per share.
It’s unclear what Raja’s departure will mean for consumers, even though he was a key driver of the airline’s new distribution strategy. One way or another, industry observers will likely be closely watching American’s ability to change course.
