May 29 Reuters American Airlines CEO Robert Isom on Wednesday promised a reset of the carrier39;s sales and distribution strategy after the carrier cut its earnings forecast for the current quarter despite robust demand for travel.
The downbeat outlook led to a 15 drop in American39;s shares in morning trade, dragging down the broader the NYSE Arca Airline index.
Isom blamed the changes to the airline39;s sales strategy for softer customer bookings, adding American was evaluating its strategy holistically and piece by piece.
The degree our approach has driven customers away from American, we39;re unequivocally committed to getting those customers back, he said at the Bernstein Strategic Decision conference.
On Tuesday, the company announced the departure of chief commercial officer Vasu Raja who was spearheading the new sales and distribution strategy.
Under the strategy, American sought to rework its contracts with corporate travel agencies and customers, cutting perks and discounts. It also slashed its sales team.
Raja also aggressively pushed a plan that sought to compel customers to make bookings directly with the airline instead of through thirdparty sites and travel agencies.
Isom said some of the changes aimed at driving up direct bookings have been called off. Sometimes we need to reset, he said. And in this case, we do.
American will also slow its seat capacity growth in the second half of the year to address supplydemand imbalances in the domestic…