American Airlines CEO to Retire. That Won’t Stop the Stock From Rising.

- Advertisement -


American Airlines is getting a new CEO. Its stock is rising.

- Advertisement -

Patrick T. Fallon / AFP via Getty Images

- Advertisement -

American Airlines CEO Doug Parker will retire at the end of March next year after nine years, the company said Tuesday. American Airlines stock, which was rising before the news was announced, continues to rally.

Parker, who will remain as chairman, will be replaced by the company’s current chairman, Robert Isom, American said in a statement.

- Advertisement -

The last two years of Parker’s tenure have been dominated by the COVID-19 pandemic and its impact on the region. The Omicron version, or at least its potential threat, has served as a reminder in recent weeks that the pandemic is still a risk to airlines and wider travel stocks.

Airline stocks have been the most volatile since the markets busted just after the Omicron edition just after Thanksgiving, causing the US Global Jets ETF (JETS) to fall 12% from November 22 to December 1. True to form, US airlines made big profits. The broader market rose on Monday as Omicron’s fears eased. That continued on Tuesday as American Airlines stock gained close to 3.1% in premarket trading, while United Airlines (UAL) climbed 2.8% and Delta Air Lines (DAL) rose 2.4%. The Jets ETF is up 2.4%.

Isom will take charge at a critical time for the company and the wider industry as it continues to continue its recovery from the effects of the pandemic.

“Over the past several years, our airline and our industry have gone through a transformational change. And with changes comes opportunity,” Isom said, adding that the airline was positioned to lead the industry as “the travel rebound.”

Parker echoed those sentiments and said the company was well positioned to take advantage of the industry’s recovery, adding that “now is the right time for a handoff that we have planned and prepared for. “

He chose a good day for it.

Write to Callum Keown at [email protected]

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox