- In today’s CEO Daily: Diane Brady reports on criticism of American Airlines’ CEO—and whether it’s valid.
- The big leadership story: Kroger picks an ex-Walmart exec as its new CEO.
- The markets: Mostly up, with Japan’s Nikkei reaching new highs post-election.
- Plus: All the news and watercooler chat from Fortune.
Good morning. After the annus horribilis that was 2025 for American Airlines, CEO Robert Isom is now facing a unanimous vote of no confidence from the board of the Association of Professional Flight Attendants (APFA). As they write: “Our airline is falling dangerously behind its competitors, and the current leadership has failed to change course.” Meanwhile Isom is also facing grumbling over his leadership and the company’s performance from another union, the Allied Pilots Association.
Their issue? American Airlines made only $111 million of profit last year on revenues of $54.6 billion. Alaska Air made almost as much profit on $14.2 billion of sales, while Delta Air Lines and United Airlines generated profits of about $5 billion and $3.4 billion respectively. As an “Executive Platinum” AA member who’s been bounced around by various snafus over the past year and can’t seem to cash a “systemwide upgrade” to save her life (you find an eligible flight to Japan!), I get it. But how much of AA’s woes are actually Isom’s fault? Let’s dig in:
Crisis Management – It’s never a good look when flight problems dominate the headlines, but given that he can’t control the weather, experts say Isom’s record here isn’t bad. AA has been proactive amid recent winter storms that were especially disruptive to its hubs in Dallas and Charlotte and hurricanes that hurt it as the dominant carrier serving Miami. Add in last year’s midair collision with Flight 5342 in Washington, a tragedy caused by a wayward military helicopter and compassionately handled by Isom. Its relative dearth of widebody aircraft and vulnerability to pilot retirements is a problem that predates Isom, and he’s taken steps to address them.
Employee Relations – Let’s decouple AA’s unions from the workers they represent. While there are no current negotiations with management, the unions have had some battles with members and face competition from rival groups. While Isom clearly needs to address their concerns, he’s been responsive to criticism. Moreover, AA flight attendants and pilots currently lead the industry when it comes to pay, which is often a third more than rivals. That said, stressful times can increase burnout and nobody likes to see their company (or their stock) losing ground to rivals.
Leadership – Ultimately, Isom will be judged by his results. He is paying down debt ahead of schedule, secured an exclusive credit card deal with Citi and is finally rolling out free WiFi and lounges that feel like maybe they’re worth paying for. Jeffrey Sonnenfeld, the Lester Crown Professor of Leadership Practice at the Yale School of Management, describes Isom as “a remarkable model of resilience on all dimensions.”
That said, Isom’s leadership is now being put to the test. It would help if he made himself available for interviews now and then, like Delta’s Ed Bastian. He doesn’t have to be a celebrity like former AA CEO Bob Crandall, a legend who earned both accolades and the title of “Darth Vader” while he was at the helm from 1985 to 1998. But the latest attacks on Isom’s leadership show that AA’s current CEO needs to do a better job of telling his company’s story. I’d certainly love to hear it.
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Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top leadership news
Kroger hires Walmart vet as CEO
Kroger hired Greg Foran, the former CEO of Walmart U.S. and Air New Zealand, as the grocery chain’s new CEO. Shares of the company jumped following the news; Foran’s high standards and experience revitalizing Walmart’s U.S. grocery business bode well for Kroger.
Former Spanx CEO’s new job
Laurie Ann Goldman, the former CEO of Spanx, Tupperware, and Avon, is now chief executive of Audien Hearing, and tells Diane exclusively about her plans to scale the over-the-counter hearing aid brand by working to destigmatize hearing aids. “I've been calling it building the ‘Great Un-Mumbling,’” she said.
Jennifer Garner’s food company notches successful IPO
Once Upon a Farm, the kid and baby food brand cofounded by actress Jennifer Garner, debuted on the New York Stock Exchange last week, and its stock price was up almost 40% on Monday. Garner told Fortune that her cofounders “probably slept an hour each” before the IPO.
The markets
S&P 500 futures are up 0.08% this morning. The last session closed up 0.47%. STOXX Europe 600 was up 0.05% in early trading. The U.K.’s FTSE 100 was down 0.19% in early trading. Japan’s Nikkei 225 was up 2.28%. China’s CSI 300 was up 0.11%. The South Korea KOSPI was up 0.07%. India’s NIFTY 50 was up 0.26%. Bitcoin was steady at $70K.
Around the watercooler
Why you shouldn’t worry about AI eating the stock market, top analyst says. The U.S. economy is ‘about to take off’ by Nick Lichtenberg
Meet Jody Allen, the billionaire owner of the Seattle Seahawks, who plans to sell the team and donate the proceeds to charity by Jake Angelo
JPMorgan’s nationwide home price forecast hides a Sunbelt full of pain. Watch out, Florida and Texas by Jason Ma
Lyft CEO David Risher is still a driver for the company: It made him realize being even one minute late could cost the customer their job by Sasha Rogelberg
CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.
