American Airlines planes line up at the gates at Ronald Reagan Washington National Airport in Arlington, Virginia, on February 10, 2024.
J. David Ake | Getty Images
American Airlines sharply slashed its revenue guidance on Tuesday and announced that its chief commercial officer, Vas Raja, will leave the company next month.
American Airlines said it now expects second-quarter unit revenue to fall as much as 6 percent from a year ago, down from its previous forecast of a decline of no more than 3 percent. The airline also lowered its adjusted earnings forecast for the quarter to $1.45 to $1.15 a share, down from $1.15 a share.
United Airlines has lagged behind rivals Delta Air Lines and United Airlines in financial performance in recent months. United Airlines late Tuesday reiterated its forecast for second-quarter adjusted earnings of $3.75 to $4.25.
Executives from both companies are scheduled to make the announcement at a Bernstein conference on Wednesday morning.
Raja, who has been head of sales for more than two years, had been on leave recently and a company spokesman said last week he was not leaving. The change came after several days of internal discussions, a person familiar with the matter said. Raja previously served as chief revenue officer and headed American’s network and partnerships division.
Raja did not immediately respond to a request for comment.
Correction: This story has been updated to correct Vasu Raja’s title.
