American Air changes, Booking CEO salary and Viking earnings

Good morning from Skift. It’s Thursday, May 30th. Here’s what you need to know about the travel industry today.

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Episode notes

American Airlines CEO Robert Isom paid tribute to departing chief commercial officer Vasu Raja. However, Isom has made it clear that it is time for Raja to join the American’s struggles, reports airlines editor Gordon Smith.

Isom admitted at Wednesday’s conference call that American dug itself a hole in the second quarter after the company’s financial outlook was downgraded. Praising Raja’s creative thinking and passion, Isom admitted that the American needed a reset. Compared to rivals Delta and United, the company underperformed on many key metrics, including operating margin, an important measure of profitability.

Next, Glenn Fogel, CEO of Booking Holdings and Booking.com, was the highest-paid travel CEO in 2023, reports executive editor Dennis Schaal.

Fogel received a total compensation package of $46.7 million last year, according to the Wall Street Journal. Delta Airlines CEO Ed Bastian ranked second among travel industry CEOs with a compensation package of $34.2 million. The Wall Street Journal also assessed the total shareholder return of each S&P 500 company compared to its industry, with Booking Holdings and Delta among the four travel companies with the highest score.

Finally, luxury cruise line Viking released its first earnings report since going public earlier this month. Senior hospitality reporter Sean O’Neill shares some takeaways from the quarterly earnings.

O’Neill notes that Viking presented an overall optimistic report. The company, which primarily targets affluent, English-speaking travelers over the age of 55, said it sold 91% of possible passenger cruise days this season.

Additionally, Viking executives said they have so far sold $2.5 billion in advance reservations for the 2025 season.

Photo: American Airlines CEO Robert Isom speaks on stage at the Skift Aviation Forum in Fort Worth, Texas, November 2023.