* 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.