American Airlines removed from S&P 500 due to market valuation

The previous CEO had publicly predicted that shares would reach $60; however, shares now hover around $10, close to their lows from the start of the pandemic. This is despite receiving substantial government subsidies and a recovery in travel demand.

American Airlines attributes its underperformance to its decision to move away from managed travel and penalize travel agencies, estimating this strategy costs them about $1.5 billion in annual revenue. However, with nearly $53 billion in revenue last year, this explanation does not fully account for their challenges in absolute or relative terms. The architect of this strategy was dismissed but appears to have been used as a scapegoat.

Critics argue that American Airlines suffers from a lack of leadership and insufficient focus on product improvement. The company's board has tolerated these issues without implementing significant changes.