American Airlines President and incoming CEO Robert Isom sat down for an open one-on-one conversation with CLT Alliance President and CEO Janet LaBar Wednesday morning as he prepares to take on the role of CEO for the airline at the end of the month.
Approximately 125 CLT Alliance investors and community leaders joined to hear their conversation, which spanned a range of topics—including his approach to leadership, current industry headwinds, American’s outlook, and the important role CLT plays in their future success.
‘Purpose is important’ | Isom charts his course
Isom has spent decades as a leader in the airline industry. Prior to becoming president of American Airlines, Isom served in executive and senior leadership roles at American, US Airways, Northwest Airlines, and America West.
Throughout that tenure, Isom said he has had the privilege of learning from a number of great leaders, with outgoing American Airlines CEO Doug Parker being chief among them.
“Doug is a unique leader,” Isom said. “It’s hard business and he has put a personal touch to it.”
Looking to the future, Isom cited an outlook presentation made by Parker during the 2022 J.P. Morgan Industrials Conference last week highlighting that the average industry experience of new and incoming airline CEOs is more than 28 years. Isom believes that the wealth of knowledge these new leaders bring is critical for success as the industry works to recover from the effects of the pandemic.
“That means you’ve been a leader through 9/11 and the Great Recession,” Isom said.
He believes those experiences taught leaders how to take care of their company and their people during difficult circumstances.
“Those kinds of experiences have tempered people and the leaders that are now running these businesses, and I think that bodes well for the industry,” he said.
In his opening remarks, Isom also talked about the importance of building connections and bringing people together. He said a leader should never lose touch with humanity.
“We have a really important responsibility for our community and for our country as well,” Isom said.
But leadership has the potential to take its toll, Isom said. He believes purpose is important.
“You have to have a reason for being—you have to know why you’re in business, and ours is to care for people on life’s journey,” he said. “You have to figure out a way to have balance.”
‘Green flag plan’ | Leading through a pandemic
During the pandemic, Charlotte, which serves as American’s second largest hub, became more important to American’s operation than ever before.
Isom said he was in constant communication with airline team members based in Charlotte to ensure the operation continued as seamlessly as possible.
“It was important,” Isom said. “Travel is essential for what this country does.”
At the height of the pandemic, Isom said he got on the phone himself and made personal calls to the airline’s most frequent fliers, asking them why they continued to fly when so many others were no longer traveling.
Isom said he heard first-hand stories from a bone marrow courier, a powerplant mechanic, and others, who told him that if they couldn’t fly, the health and well-being of others would be jeopardized, and basic necessities like lights and electricity would not be met.
It underscored to Isom the importance of ensuring that when the effects of the pandemic began to subside, the airline would emerge stronger than ever.
They took stock of their fleet and facilities, retiring hundreds of older, less efficient aircraft while accelerating construction projects at several of their hubs, Isom said. American now boasts to have the newest fleet of aircraft in the business.
“We came up with a ‘green flag’ plan,” Isom said, in a nod to the racing history of the Charlotte Region. They equated the pandemic-related slowdown to a yellow flag, which gave them the chance to head in for a pitstop.
“We used the time to fine tune our operation to ensure that when the green flag waves again … we are ready to accelerate,” Isom said.
That doesn’t mean the airline industry is without headwinds. Supply chain challenges, production issues, and a pilot shortage all continue to create a “deficit” that American expects to impact the amount of flights, particularly regional aircraft.
“We would be flying a lot more if we could,” Isom said. “We need the other companies and partners to get back on their feet.”
Despite the challenges, the number of routes out of Charlotte Douglas International Airport is roughly equivalent to pre-pandemic levels. This summer, American will operate approximately 660 daily departures from CLT, including trans-Atlantic flights to Munich, Frankfurt, London, Dublin, Madrid, and Rome.
Preparing for take off
Hope is on the horizon for air travel, Isom said.
“Business travel is coming back, I am confident with that,” he said.
Isom said vacation trips to international destinations will ramp up through the summer. He believes as more countries remove testing and quarantine requirements, that number will increase.
And while Isom believes the cleaning standards both in the airports and on board are here to stay, some of the other changes that came along with the pandemic like mask requirements are likely temporary.
“Air quality is safer on planes than it is here in this room,” Isom told the group.
‘Charlotte is on a tremendous growth path’ | Clear skies ahead
At Charlotte Douglas, approximately 75% of the people who are flying are connecting through the airport; 25% originate locally. As growth continues in the Charlotte Region, that percentage will likely change.
The ability to move people and products around is an asset to the region’s economy. Isom credited the leaders of the Charlotte Region for having the vision and forethought to develop Charlotte into a “world-class port city” where so much trade can efficiently travel through.
The airport is a big driver of the region’s growth, and so is American’s decision to have a hub in this community.
“That set Charlotte on a different track,” Isom said. “Charlotte is on a tremendous growth path bringing in businesses that many other cities would love to have.”
As he looks to the future, Isom said cities like Charlotte with a major airline hub will have a competitive advantage.
“In the future, if you don’t have a hub airport, how are you going to be significant in the world?”
As he closed the conversation, Isom pledged continued support and commitment to the Charlotte Region with new aircraft, improved efficiencies, and the industry’s most competitive network, connecting the region to even more destinations around the world.
“I want Charlotte to be the best of the best for years to come,” he said.
