Share prices of American Airlines fell around 15% on Wednesday after the company revised down its second-quarter outlook and shared the departure of its chief commercial officer.
The air carrier anticipates total revenue per available seat mile to drop 5% to 6% in the second quarter, according to an 8-K filing with the Securities and Exchange Commission. American previously estimated a drop of 1% to 3%. Additionally, the airline now expects between $1 to $1.15 in earnings per share for the quarter, a downward revision from $1.15 to $1.45.
American Airlines also shared that Executive Vice President and Chief Commercial Officer Vasu Raja will depart the company in June. During his tenure, Raja developed a plan to increase direct bookings with the airline versus through third-party website and travel agencies. However, modifications to organization’s distribution strategy cut the sales department, as well as made it more difficult for some agencies to sell tickets on the airline’s planes.
Stephen Johnson, who currently services as the airline’s vice chair and chief strategy officer, will assume the duties for the chief commercial officer role while a replacement search is underway.
