American CEO Parker becomes latest airline chief to exit

DALLAS (AP) — American Airlines CEO Doug Parker will retire in March and be replaced by its current president, Robert Isom, as the nation’s largest airline seeks to rebuild after massive losses caused by the pandemic.

Parker, 60, has been CEO at three different airlines since 2001, including the last eight years at Texas-based American.

Isom is a longtime Parker lieutenant who has been the heir apparent since becoming American’s president in 2016. He has overseen American’s operations, including sales and pricing, and its alliances with other airlines. Parker will remain chairman, American said Tuesday.

There will be no shortage of challenges for the 58-year-old Isom.

American posted a profit of $169 million in the third quarter, but only because the company received nearly $1 billion in federal pandemic relief to cover most of its payroll costs. American has lost nearly $10 billion since the start of 2020, and its debt ballooned to more than $36 billion as it borrowed to get through the worst of the pandemic.

Isom said his first priorities will be returning American to profitability without federal aid “as soon as possible” and running a reliable airline that passengers can count on.

American struggled through most of the summer with high numbers of canceled and delayed flights, then suffered another letdown in October. Some of the disruptions started with bad weather, but they spun out of control because of staffing shortages. American persuaded thousands of employees to leave last year, only to be caught short when air travel recovered faster than expected this summer.

American has been hiring pilots and other employees, and Isom said American’s improved showing over the Thanksgiving holiday and into early December shows that the airline is on the right path.

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