- Robert Isom, CEO of American Airlines, said the company has been struggling with Boeing for years.
- “I look forward to the day when they’re not just a distraction,” he told CNBC.
- He said he hoped that Boeing would be able to “deliver quality aircraft on time.”
American Airlines CEO Robert Isom says his carrier has been struggling with aircraft manufacturer Boeing for years.
During a Thursday interview with CNBC’s “Squawk Box,” Isom was asked about the ongoing Boeing strike, and whether it would affect American Airlines’ capacity.
“We’re going to be able to deliver the capacity that we’ve said we would, for the remainder of this year,” Isom told CNBC’s Phil LeBeau. “For Boeing — it’s just, I look forward to the day when they’re not just a distraction. We’ve been struggling with them for over the last five years.”
However, Isom said that American Airlines does not “depend a lot on the Boeing deliveries.” He said as well that he remains confident in American Airlines “being able to deliver and managing our business, no matter what’s going on at Boeing.”
“We need Boeing to be strong, and that’s what I’ve told Kelly,” Isom said of Boeing’s new CEO, Kelly Ortberg.
“At the end of the day, though, we need them to deliver quality aircraft on time, and I’ll be welcoming that phone call when Boeing says: ‘We’re going to do that,'” he added.
In 2023, American Airlines had a fleet of close to 500 Boeing-manufactured aircraft, including the 737s, 777s and 787s. And in March, it placed orders for 85 new Boeing 737 Max 10 aircraft.
Isom’s interview with CNBC came shortly after American Airlines posted a third-quarter loss in its quarterly earnings on Thursday. The company reported a revenue of $13.6 billion but a net loss of $149 million.
Boeing has had a tough couple of quarters. On Wednesday, the planemaker reported a third-quarter loss of $6.1 billion. This was compared to a loss of $1.44 billion in the previous quarter.
Its union workers’ strike started on September 13 after staff rejected a proposal to hike wages by 25% over four years, and demanded 40%.
And on Wednesday, Boeing workers rejected a proposal with a 35% wage increase over four years.
The strike has forced most of Boeing’s manufacturing to a standstill for over five weeks.
But Boeing’s chief 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 return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” Ortberg said in a memo to staff on Wednesday.
Representatives of Boeing and American Airlines didn’t respond to requests for comment from Business Insider, sent outside business hours.
Source link
lol
