American Airlines CEO Robert Isom said the airline has struggled with Boeing for years and told CNBC that he “looks forward to the day when they are no longer just a distraction.” “We deliver quality aircraft on time.”
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American Airlines CEO Robert Isom said his airline has had a long-standing struggle with aircraft maker Boeing Co.
In a Thursday interview with CNBC’s “Squawk Box,” Isom was asked about the ongoing Boeing strike and whether it will affect American Airlines’ ability to fly.
Isom told CNBC’s Phil LeBeau that “for the remainder of this year, we will be able to provide the capacity that we have described.” “For Boeing, I just look forward to the day when they’re not just a distraction. We’ve been wrestling with them for the last five years.”
But Isom said American Airlines is “not heavily dependent on Boeing deliveries.” He also said he remains confident that American Airlines “can run and manage our business no matter what’s going on at Boeing.”
“Boeing needs to get stronger, and that’s what I told Kelly,” Isom said of Boeing’s new CEO, Kelly Ortberg.
“But ultimately, we need quality aircraft delivered on time. If Boeing says, ‘We’re going to do that,’ I’m going to welcome that call.” he added.
In 2023, American Airlines had nearly 500 Boeing aircraft, including 737s, 777s, and 787s. In March, the airline ordered 85 new Boeing 737 Max 10 aircraft.
Isom’s interview with CNBC came shortly after American Airlines reported a third-quarter loss in its quarterly results on Thursday. The company reported a net loss of $149 million on revenue of $13.6 billion.
Boeing has had a tough few quarters. On Wednesday, the aircraft maker reported a loss of $6.1 billion in the third quarter. This compares to a loss of $1.44 billion in the previous quarter.
The union workers’ strike began on September 13 after employees rejected a proposed 25% pay increase over four years and demanded 40%.
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And on Wednesday, Boeing employees rejected a proposal that would have included a 35% pay increase over four years.
The strike halted much of Boeing’s production for more than five weeks.
But Boeing CEO Ortberg, who took over the reins in August, said he remains confident in the company’s ability to turn things around.
“It will take time to bring Boeing back to its previous traditions, but with the right focus and culture, we can once again be an iconic company and a leader in aerospace,” Ortberg told staff Wednesday. I stated this in a memo to
Representatives for Boeing and American Airlines did not respond to requests for comment from Business Insider sent after hours.
