Transportation
American Airlines Plunges After CEO Admits Misjudging Demand
- Carrier reduces second-quarter forecast for adjusted earnings
- Stock plunges most since 2020, dragging down rival airlines
This article is for subscribers only.
American Airlines Group Inc. slashed profit and revenue expectations as its top executive acknowledged that the carrier misjudged domestic demand heading into the crucial summer travel season.
The problems stemmed in part from a recent shift in the airline’s sales strategy that sought to push customers away from booking agencies in favor of buying directly through American. The revelations — along with the abrupt departure of its chief commercial officer — sent the carrier’s shares plunging the most in almost four years and heralded changes to its network strategy.