Skip to content

What's next for American after CEO Doug Parker announces his retirement?

Dec. 08, 2021
5 min read
What's next for American after CEO Doug Parker announces his retirement?
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Editor’s note: A version of this story first appeared in TPG’s biweekly Aviation newsletter. Sign up here to make sure you’ll always be the first to see our exclusive content.

The world’s biggest airline will soon have a new leader at the helm.

That news came Tuesday, when American Airlines CEO Doug Parker said he’d retire in March. Taking his place will be Robert Isom, currently the carrier’s president.

Neither move was surprise, but it’s part of a broader leadership change now underway for the U.S. airline industry. Southwest CEO Gary Kelly will step down in February while Alaska Airlines’ Brad Tilden did so earlier this year. With that, there’ll be new CEOs running three of the nation’s five biggest carriers by the time summer arrives.

For now, though, Parker’s retirement and Isom’s impending promotion to CEO is the big story. The executives did a whirlwind round of media interviews after their Tuesday announcement. I got 8 1/2 minutes with the pair Tuesday. It was a “buckle your seat belt, prepare for takeoff” lighting round that touched both on Parker’s legacy and the future of the world’s largest airline.

From 9/11 to COVID-19: As CEO, Doug Parker’s 20-year tenure spanned from crisis to crisis

Doug Parker, then-CEO of US Airways, speaks during a press conference at Dallas-Fort Worth on Feb. 14, 2013, to detail plans to merger with American Airlines. (Photo by Mike Fuentes/Bloomberg via Getty Images)

For Parker, he is exiting the industry literally yards from where he started his career in the 1980s. He was part of a crew of young financial analysts, fresh out of school and ready to conquer the world.

“I joined American Airlines in 1986 – at a time when we all knew we were working at the best airline in the world,” Parker said to TPG during the interview.

Over the years, Parker would hold other airline jobs, eventually becoming CEO of America West days before the Sept. 11, 2001, terrorist attacks.

Sign up for our daily newsletter

But his legacy might ultimately be as the catalyst who reshaped – and brought stability – to the post-deregulation airline industry.

Another CEO retires: From battling ‘frenemy’ Delta to Oneworld to Virgin America, outgoing Alaska Air CEO leaves his mark

Parker was the CEO who kicked off the industry’s modern cycle of merger mania back in 2005, when his America West Airlines acquired then-bankrupt US Airways – ultimately taking on the latter’s name.

Other merger dominoes began to fall shortly after. First Delta and Northwest merged, then United and Continental and – finally – Southwest acquired AirTran.

But it would be Parker who – seven years after he started the modern merger rush – would end it with the most ambitious deal yet. His smaller US Airways would take over a bigger-but-bankrupt American Airlines, adopting the American name and Texas headquarters – though what emerged was still very much a US Airways-led company.

Now, that’s where Parker will exit the industry – on that same plot of land in Texas. Except this time, he’s in a modern glass complex and at the helm of the world’s largest airline. Yes, American still has issues, but Parker says he is “leaving it, feeling in a really good place.”

TPG exclusive: American CEO Doug Parker talks about alliances, travel rebound

Pushed further, when asked if there’s one thing as CEO that he never got to accomplish, Parker just replied: “I feel pretty good.”

But not so good that he’s yet mapping out where he plans to use his free flight benefits.

I’ve still got 4 1/2 months as CEO here and I haven’t thought about where next,” Parker said. But his guiding principle will be “someplace I haven’t been before.”

Looking ahead, the transition to Isom will not be a radical shift for American. He’s been president since 2016 and has been a top leader, with Parker, since the US Airways days in 2007.

A CEO’s prerogative: American’s Doug Parker on how he feels about flying his own airline

Robert Isom, then-chief operating officer of US Airways, speaks during an event at the company's headquarters in Arizona on April 6, 2011. (Photo by Laura Segall/Bloomberg via Getty Images)

Isom notes that “I’ve had a chance to learn from Doug” and says that he’s “committed to running a company with a sense of purpose.”

“Doug’s been a great teacher, mentor and friend,” he added.

Don’t expect a major shift in strategy, but Isom will bring his own style. “I am probably much more of a morning person than Doug,” he jokes.

Job No. 1 for Isom will be to ensure that the airline is ready for the wave of travelers he expects to soon be flying.

“We worked so hard to make it through the pandemic and do more than survive,” he said. “We have positioned American to thrive once demand returns.”

TPG flies both carriers: We put AA and JetBlue to the test: Does the new alliance deliver on promised elite perks?

That includes modernizing the fleet, making the jets uniform, optimizing the network and leveraging the partnerships with Alaska Airlines and JetBlue.

“In 2022, it is really about running an on-time airline,” he said.

We wouldn’t be TPG without ending the call talking about the value of the AAdvantage frequent flyer program.

Isom didn’t go into details about it beyond saying “it’s incredibly important” and pointing to how American used to program during the pandemic to help it refinance its debt.

Probably not the message die-hard flyers want to hear, but the silver lining is that at least he sees value in the program.

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Top offers from our partners

How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
See all best card offers

TPG featured card

Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

2 - 10X points
10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day

Intro offer

75,000 bonus miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

Annual Fee

$395

Recommended Credit

740-850
Excellent
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

    75,000 bonus miles
  • Annual Fee

    $395
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
    Excellent

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023