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American Airlines shakes up leadership as CEO faces pressure to close profit gap
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American Airlines shakes up leadership as CEO faces pressure to close profit gap
Aug 12, 2026 1:57 PM

* Isom signals further changes as it deals with high jet

fuel costs

* American reorganizes commercial, operational leadership

* Pilots question management's ability to close profit gap

By Rajesh Kumar Singh

CHICAGO, Aug 12 (Reuters) - American Airlines ( AAL ) is

reorganizing senior management, broadening oversight across its

commercial and operations teams and adding a former Spirit

Airlines executive to run technical operations, as CEO Robert

Isom faces pressure to close the carrier's profit gap with

rivals.

In a staff memo seen by Reuters, Isom acknowledged a

"meaningful gap" between American's current performance and

where he said the airline should be. He said the moves were the

"first step in a series of actions" aimed at strengthening the

team, improving alignment and accelerating execution.

The company's profit gap with Delta Air Lines ( DAL ) and

United Airlines was already wide before the recent fuel

shock that followed the U.S.-Israeli attacks on Iran that kicked

off a war that has caused energy prices to surge.

Former Spirit Airlines COO John Bendoraitis will join

American to lead technical operations, one of a number of moves

to try to boost performance. Chief Commercial Officer Nat Pieper

will add marketing and branding to his duties, Chief Customer

Officer Heather Garboden will take on reservations and service

recovery, and JC Gulbranson will add airports and planning.

Chief Communications Officer Ron DeFeo is stepping down,

according to the memo. Caroline Clayton will oversee

communications and Steve Neuman government affairs.

Garboden, Gulbranson, Clayton and Neuman will join

American's senior leadership team.

American expects roughly break-even results in 2026, as higher

jet fuel prices ate up gains from stronger revenue. Delta and

United expect solid profits.

The heat on Isom has already been building. Flight attendants

earlier this year called for a leadership change, while its

pilot union has questioned whether the current management team

can close the earnings gap.

Pilots' union head Nick Silva recently contrasted American's

breakeven outlook with profits at rivals, arguing that "rising

fuel costs are not holding our competitors back from innovation

and profitability."

In a memo to pilots last week, Silva said the union had

sought a meeting with American's board to discuss concerns about

the company's future but was "rebuffed." It has since held

discussions with analysts, investors and other stakeholders, he

said.

"The consensus is clear: Something must change. The only

question is 'When?'" Silva wrote.

Isom made clear he is not changing course, saying American has

"the right strategy and the right team to deliver it," as it

focuses on expanding its global network, growing premium revenue

and strengthening its AAdvantage loyalty program.

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