May 29, 2024 - Economy

Charted: Turbulence ahead for American Airlines

A red line chart that displays the daily stock price of American Airlines Group from January 2 to May 29, 2024. The price fluctuates between $11.52 and $15.68 during this period. There's a noticeable peak in late February, followed by a steady decline in May, ending at the lowest point of $11.62, a 1-day drop of 13.5%.
Data: Yahoo Finance; Chart: Axios Visuals

American Airlines' chief commercial officer Vasu Raja is out as his strategy to lead the company away from business travel has backfired.

Why it matters: A rebound in business travel is helping American's competitors Delta, United and Alaska Air gain double-digit sales growth from corporate accounts.

The big picture: American cut its guidance for this current quarter — the start of the all-important summer travel season — late Tuesday, which sent investors scurrying.

  • Shares sank nearly 14% by the end of Wednesday's trading.
Go deeper