American Airlines announced it was shaking up its senior management team after reporting a second-quarter loss at a time when competitors like United and Delta Airlines posted their largest profits in years.
Texas-based American, which with United dominates Chicago’s O’Hare International Airport, is promoting chief financial officer Tim Horton to the role of president.
Horton will report to American CEO Gerard Arpey and will be responsible for much of American’s operations: its finance, planning, sales and marketing, customer service, and information technology organizations.
American blamed higher fuel prices for its $10.7 million net loss for the second quarter of 2010, or $0.03 per share. That’s an improvement from American’s net loss of $390 million, or $1.39 per share, in the second quarter of 2009.
Wall Street had been pressuring Arpey to shake up American after first quarter results reported by the nation’s #2 carrier lagged those of its peers.
Over the long term, American should gain a boost from a new trans-Atlantic joint venture with British Airways, which received final regulatory approval on Tuesday.
But as the only legacy carrier to avoid bankruptcy, American is burdened with significantly higher retiree and health care costs than competitors such as United and Delta.
jjohnsson@tribune.com
