American Airlines Management Shake-up Aims To Close Leverage With Competitors and Improve Service

American Airlines has begun a shake-up of its senior leadership as it seeks to narrow a sizeable profitability gap with main rivals Delta Air Lines and United Airlines. A wide-ranging reorganisation of the executive team was outlined in an internal letter dated 10 August from chief executive Robert Isom to senior employees.

The organisational reset is taking place at a key moment for the carrier, as it attempts to regain passenger confidence, improve operational reliability and increase financial returns after a period of underperformance compared with the rest of the aviation sector.

The changes at board level include the departure of several senior figures from major operational and administrative departments.

Senior Exits as American Reshapes Leadership

Ron DeFeo, the chief communications officer, is resigning from his position after overseeing the airline's media strategy during the post-pandemic recovery phase.

At the same time, Nate Gatten, executive vice-president in charge of American Eagle as well as corporate real estate and government affairs, is leaving the company to take up a new position elsewhere.

The company is also parting with experienced leadership in its technical division, as Kevin Brickner, senior vice-president of technical operations, is retiring after thirty years with the company. This follows the announcement of the retirement of Steve Johnson, vice-chair and chief strategy officer, who will be leaving at the end of the year.

Redistribution of Roles and Strategy Realignment

Chief executive Isom has reallocated senior responsibilities and brought new leaders into the central organisation.

Under the new management structure, Caroline Clayton, senior vice-president of communications and chief marketing officer, will assume full responsibility for corporate communications.

Heather Garboden's role as chief customer officer is expanded to include reservations, contact centres, service recovery and onboard services.

John Bendoraitis, a former executive at Spirit Airlines, has been hired to take charge of technical operations and maintenance, and JC Gulbranson, who was previously involved in flight operations, will now oversee airports, flight planning, in-flight staff and the integrated operations centre.

Profit Gap Highlights Pressure for Turnaround

This restructuring is taking place at a time when industry experts see this as the most difficult phase American Airlines has faced since it left Chapter 11 bankruptcy protection in the mid-2010s. The commercial pressure behind these changes is evident in the latest earnings statements.

In the second quarter of 2026, American Airlines reported net income of $71 million (£55 million), well behind United Airlines and Delta Air Lines, which posted quarterly net profits of $805 million and $1.6 billion respectively.

Isom has admitted that the present performance is insufficient, stating that there is a significant gap between the position the carrier is in at the moment and the position it should be in.

The airline is pursuing a turnaround strategy that involves making heavy investments in its main domestic hubs, improving its premium cabin facilities, enhancing the quality of its services and using its long-haul route to Latin America from Miami International Airport.

It is still uncertain whether the newly appointed executive team will be able to carry out these changes and regain ground against Delta and United.