American Airlines Group Inc. (NASDAQ:AAL) is reportedly reorganizing its senior leadership team as CEO Robert Isom added a former Spirit Airlines executive to the senior management team amid surging fuel costs and gaps between the airline and rivals like Delta Air Lines Inc. (NYSE:DAL) and United Airlines Holdings Inc. (NASDAQ:UAL).
An Overhaul in Senior Management
According to a staff memo obtained by Reuters on Wednesday, Isom acknowledged that there was a “meaningful gap” between American’s current operational execution and where the company ought to be. The CEO framed the executive shuffle as the “first step in a series of actions” to align the carrier’s commercial and operational units, the report said.
American Airlines did not respond to Benzinga‘s request for comment.
John Bendoraitis, who was the former Chief Operating Officer at Spirit Airlines, joins American to head technical operations, the report said.
Others include Nat Pieper, Chief Commercial Officer, who assumes control of marketing and branding, as well as Heather Garboden, the Chief Customer Officer, who will oversee reservations and service recovery. The company’s Chief Communications Officer, Ron DeFeo, is stepping down from his role, the report said, among others.
According to a July report by CNBC, Delta outearned American Airlines by $5 billion, while United Airlines earned $3 billion more than the carrier.
American Airlines Earnings
While the airline operator had beaten market estimates in the second quarter of 2026, surging fuel costs due to the ongoing tensions between the U.S. and Iran forced it to cut its full-year earnings outlook as management expected fuel prices to remain volatile.
The airline reported an adjusted EPS of 15 cents during its second-quarter earnings report, which surpassed the 3-cent estimate by analysts. The company’s revenue rose 16.3% to $16.735 billion, beating expectations of $16.707 billion.
However, management said that projected fuel costs surged by more than $700 million for the third quarter and nearly $1.6 billion for the rest of 2026 since early July.
American Airlines also said that starting August 25th, it will no longer offer complimentary business class upgrades to elite frequent flyers on some transcontinental and Hawaii routes. The airline will instead place eligible travelers on the premium economy upgrade list.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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