In his initial question and answer session with employees after assuming the role of CEO at American Airlines, Robert Isom emphasized the importance of stringent cost control. Two and a half years ago, amid disappointing second-quarter earnings and projections of no profit in the third quarter, Isom highlighted that while revenue issues are fixable, he takes pride in their cost management.
During a presentation to employees following the airline's second-quarter earnings call on Thursday, a recording reviewed by View From The Wing revealed Isom's assertion that American Airlines should be financially competitive with United and Delta. He stated, "No airline is better at being careful with a dollar than American." He added that maintaining tight control over expenses is crucial as it presents a competitive advantage.
"We are doing an exceptional job at running a solid airline and doing it efficiently," Isom remarked. He elaborated on ongoing efforts to re-engineer the company to optimize resource use while ensuring customer needs are met without unnecessary spending. According to him, this strategy is yielding results: "There is no airline today that is running a tighter ship in terms of expense and cost management."