American Airlines Chief Commercial Officer Departs Amid Revenue Challenges

American Airlines' chief commercial officer makes surprising exit

Vas Raja was the main driver behind the airline's new distribution strategy. It was not immediately clear what Raja's departure will mean for consumers.

One way or another, industry observers will likely keep a close eye on a potential change of direction for American.

Revenue Outlook Lowered

In a filing with the Securities and Exchange Commission on Tuesday, American also lowered its financial outlook for the second quarter.

• The airline now expects revenues to decline as much as 6% compared to the same quarter last year.
• It previously projected a drop of up to 3% compared to last year.

American has trailed major competitors Delta and United in recent months as it has struggled to translate new distribution strategies into improved revenue performance.

Revenue Challenges

American Airlines has been facing revenue challenges in recent months.

• The airline has trailed major competitors Delta and United in revenue performance.
• American has introduced new policies aimed at incentivizing customers to book tickets directly with the airline or with preferred vendors.

During the airline's first-quarter earnings call in April, CEO Robert Isom said that the airline was still "fine-tuning" the strategy.

Isom is expected to present at a Bernstein investor conference on Wednesday, along with executives from United Airlines.