Doug Parker, chairman and CEO of American Airlines Group Inc., says the world’s biggest airline will never lose money again – thanks to less competition from industry consolidation, better logistics and new types of fee-based products and services.
Parker told analysts in September that the Fort Worth-based airline was on track to earn $19.2 billion in pretax income from 2014 to the end of 2017. Quite a feat, considering that from 1978 through 2013, American’s cumulative profit was $1 billion. Even in a bad year, Parker says the airline should earn about $3 billion in profit before taxes.
The company’s latest earnings report didn’t disappoint. American posted better-than-expected fourth-quarter earnings and higher revenue of $10.6 billion, up from $9.8 billion in the last three months of 2016.
“We enter 2018 with strong momentum,” Parker says. “Demand for American’s reliable, friendly service remains strong, our network is expanding, and the products we are bringing to market are resonating with customers.”
As part of the company’s commitment to launch new products, embrace technological change and “quickly seize upon new opportunities,” American in 2017 announced a $200 million equity stake in China Southern Airlines; executed an amended trans-Atlantic joint business agreement, strengthening the company’s relationship with other key global partners; adopted next-generation technology such as cloud hosting and machine learning to speed time to value; announced a commitment for more than $1.6 billion for improvements of LAX Terminals 4 and 5; and built a five-gate expansion at Chicago O’Hare Terminal 3.
Parker has also detailed the company’s plan to increase revenue by $3.9 billion over the next four years through new deals with credit card companies, more seats on planes and other measures.
“As an airline, we will always operate in a just-in-time environment, however, we recognize we must lead for the long term,” Parker says. “This means we must be more nimble in our problem solving and in how we innovate and develop the right products, technology, and network both for customers of today and the future.
“Ultimately, all of this work will produce a company built for the long term, led by a team that thinks long-term, sees the potential of future opportunities, and brings innovative concepts to market quickly and efficiently,” he says.
He’s No. 67 on Chief Executive and RHR International’s CEO1000 Tracker, a ranking of the top 1,000 public/private companies.
Headquarters: Fort Worth, TX
Age: 57
Undergraduate degree: Albion College
Graduate degree: Vanderbilt University
First position with company: Financial analyst
First joined company: 1986
Named CEO: 2013
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
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2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
