Vasu Raja, American Airlines’ chief commercial officer, will leave the company in June, the airline announced on Tuesday. This news comes a week after the airline denied that Raja was planning to depart, amid rumours that he was not present in the office and had been ousted by the board due to dissatisfaction with American’s revenue strategy.
Last week, an American Airlines spokesperson told the Airline Observer newsletter that Raja was working remotely “for a few weeks while he takes care of some personal matters,” but was “not leaving.” The airline did not provide further details on the reason for Raja’s departure or what had changed since last week.
American Airlines also lowered its financial outlook for the second quarter, expecting revenues to decline as much as 6% compared to the same quarter last year. This is a decrease from the previous projection of a 3% drop. The airline has struggled to translate new distribution strategies into improved revenue performance, trailing major competitors Delta and United in recent months.
The airline has been lagging behind United and Delta, two of its biggest rivals, in recent months due to its inability to convert new distribution techniques into increased revenue. In an effort to encourage passengers to book tickets directly with the airline or with selected vendors rather than through numerous third-party booking platforms and channels, the airline recently implemented new restrictions.
The CEO Robert Isom said earlier in April that the airline was still “fine-tuning” the strategy, saying that during the first three months of the year there was “likely some benefit that our competitors received because of some of the changes that we’ve made.”
It is unclear what Raja’s departure will mean for consumers, as he was the main driver behind the airline’s new distribution strategy. However, industry observers will likely keep a close eye on any potential changes in direction for American Airlines.
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