Speculation Swirls Over American Airlines CEO Robert Isom’s Future—Headquarters Chatter Hits Fever Pitch Over ‘Who’s Next?’

Speculation about American Airlines CEO Robert Isom’s future has reached fever pitch at the airline’s headquarters, distracting employees as rumors swirl about possible replacements. With unions demanding change and recent operational failures shaking confidence, the conversation inside American Airlines isn’t about whether Isom will go—but who might be next in the top seat.

Rumors have been swirling about the imminent exit of Robert Isom, the airline’s former President in place since 2022.

The airline melted down last week in the face of a winter storm, amidst an earnings report where they failed to make money as rivals Delta and United earned billions. The flight attendants union just called for his ouster since virtually no profit means they get virtually no profit sharing. Pilots consider joining them in their call this week.

Two years ago Isom’s job was on the line they let go Chief Commercial Officer Vasu Raja as fall guy for their problems in a Girardian ritual sacrifice. It was Isom or Raja, and Isom wasn’t going to let it be him.

Speculation has reached a fever pitch both inside the airline and out. The accuracy of any given rumor is beside the point – the chances of an Isom exit seem like all anyone is talking about at American Airlines headquarters. Meanwhile this popped up in recent hours:

This just popped up…
byu/PsychologicalGoal927 inamericanairlines

I have no idea if this particular report is true. In fact, I would tend to doubt it even if the board were considering replacing its CEO. It’s not the kind of thing you do while the current CEO is in place when that CEO is, himself, a board member. That just creates a lame duck atmosphere, and how does he not just resign (unless he remained in place simply while negotiating severance)?

At the same time, hiring outside consultants seems like exactly the kind of thing that this board, which has never acted decisively, seems like the kind of thing that it would do. This is not a board that’s ever held executives accountable.

It seems like there hasn’t been much work getting done at American’s Skyview headquarters over the past week, as I’ve heard from several people there that hallway, closed door, and water cooler-style conversations have turned into a parlor game of speculation not over whether Isom is out, but over who replaces him? One argument that seems to pop up a lot – and this is not informed speculation of actual board thinking – is that Chief Commercial Officer Nat Pieper takes over. He’s already familiar with the airline, so there’s less of a learning curve jumping into the role, but he’s been there less than six months so not tied to past failures (and has a history with Delta and Alaska).

Pieper offered employees a rallying cry over the fight for Chicago at American’s State of the Airline meeting following its earnings call last week – the sort of argument and appeal to employees that Isom has seemed incapable of delivering.

If it were Pieper, and irony would be that he seems to have been selected for the role because Isom already knew and trusted him. The two date back the Northwest Airlines finance department three decades ago.

‘Dream candidates’ though long shots might include:

• Ben Minicucci CEO of Alaska Airlines. It’s unclear that he’d want it, though it would be running a larger airline. It would be awkward to leave in the midst of incorporating Hawaiian Airlines into his carrier, following a deal he executed. Too much unfinished business.

• Ben Smith CEO of Air France KLM and former President of Air Canada. He’s Canadian (Minicucci actually is both Canadian and an American) although American has had a Canadian CEO before. He’s been made a Knight of the Legion of Honour of France so he seems like he’s doing pretty well where he is.

• Glen Hauenstein retiring President of Delta Air Lines, would finally be getting a short at the big chair. This wouldn’t be good for customers, but he’s the real architect behind front man Ed Bastian.

I’d note that with Allegiant buying Sun Country, Sun Country CEO Jude Bricker will be out of a job. He’s former President of Allegiant, and go this start in the airline business in American’s finance department.