American Airlines lowers financial forecast and sees chief commercial officer departure

American Airlines is reducing its financial predictions for the second quarter and the chief commercial officer is leaving. This caused American Airlines' shares to drop by over 14% on Wednesday, and other airlines' shares also fell. The airline now expects to earn between $1 to $1.15 per share in the second quarter, down from the previous forecast of $1.15 to $1.45 per share. Analysts had predicted earnings of $1.20 per share on average. The departure of the chief commercial officer, Vasu Raja, was announced. He had been with the company since 2004. American Airlines aimed to make travel more convenient for customers by encouraging them to book directly with the airline for the best fares and loyalty program benefits. However, some customers criticized the changes, especially the restrictions on earning loyalty points. American Airlines' CEO, Robert Isom, stated that the airline will no longer differentiate between customers who earn AAdvantage miles based on where they booked. This decision was made to avoid confusion and disruptions for customers. The airline emphasized its commitment to providing a safe travel experience. American Airlines revised its sales forecast and announced the departure of its chief commercial officer. This led to a decrease in share prices and adjustments in earnings estimates for the second quarter. The airline plans to focus on driving bookings through its own platforms rather than third-party channels. Changes in the system were considered necessary to maximize revenue and retain cost savings. Vasu Raja, who served as the chief commercial officer, will be leaving the company next month. He had previously held roles in revenue management and network operations at American Airlines. The decision for his departure followed internal discussions within the company.