American Airlines CEO Robert Isom says the Fort Worth-based airline is running a reliable operation, even as the industry encounters difficulties with aircraft deliveries and safety issues.
On Tuesday at the annual JPMorgan Industrials Conference, Isom said he “feels really good” about where the air carrier stands, despite competitors being vocal about delays by Boeing Co. in delivering new planes. A series of mishaps involving the planemaker’s aircraft have ramped up since a Boeing 737 Max 9 suffered a blowout on Jan. 5 that left a gaping hole in the side of an Alaska Airlines fuselage.
American doesn’t have the same level of exposure to Boeing until 2028 when it anticipates the Boeing 737 Max 10, Isom said.
“Those constraints in the business today are really around things that we’re all really aware of,” he said. “It’s the aircraft manufacturers (that) haven’t been able to really deliver on schedule.”
He also mentioned engineering issues that require maintenance expenses, supply chain situations and worker shortages.
Last week, American announced it was placing a massive order for 260 jets to fill travel demand for more domestic and short-haul international routes. The order consists of 85 Airbus A321neo, 85 Boeing 737 Max 10 and 90 Embraer E175 aircraft, calling it “a vote of confidence” in Boeing.
The airline looks a lot different than before the pandemic when it was developing a new airline out of a merger with U.S. Airways. Then the pandemic hit and altered the way airlines operate. He said carriers with the capacity to deliver in strong demand environments will “win.”
“If there’s one thing about the pandemic that it’s taught us, people want to travel, they don’t like being cooped up, and they’re going to come back to our products,” Isom said.
Isom lauded American’s strong network in Sun Belt states and cited its fortress hub at DFW International Airport, which he described as a region filled with economic activity.
“We’re able to fly around the world and really serve everyone because of the way that we support our hubs,” Isom said.
Isom said American wants to complete more flights than any other airline – a measure of cancellations. He also said future bookings appear to be “solid.”
“I’m really proud of us being aggressive and taking some bold moves,” Isom said.
