American Airlines Group Inc. named a company veteran as its next finance chief as it reaps the benefits of an uptick in air travel and works to pay down debt.
Devon May, 46 years old, will take over as chief financial officer on Jan. 1, Fort Worth, Texas-based American said Tuesday. He succeeds Derek Kerr, who has held the CFO role at American since its 2013 merger with US Airways Group.
Mr. May is now senior vice president of finance and investor relations, a role he has held for less than a year. During his 20-year tenure at American and airlines it absorbed, US Airways and America West, Mr. May has held senior-level roles in finance, regional operations and network planning. The company declined to make him available for an interview.
Mr. Kerr, who was CFO of US Airways before the merger with American, will keep his roles as vice chair and president of American Eagle, overseeing the company’s regional and cargo operations. He will also serve as a strategic adviser, American said.
The airline industry in recent quarters has benefited from stronger consumer demand for travel, though business flights have been slower to recover from the pandemic. American’s revenue during the third quarter jumped by 50% from a year earlier, to $13.46 billion. The company had earnings of $483 million during the third quarter, up from $169 million during the prior-year period.
American is one of several airlines that cut back on flights this year amid widespread delays, staffing shortages and airport congestion. The company reduced its flight schedule by nearly 10% during the third quarter, but made more money per mile flown than it expected, according to an October filing.
A key challenge that Mr. May will face in his new role will be to lower the company’s debt as interest rates rise and refinancing becomes less attractive, said Helane Becker, an analyst at investment firm Cowen Inc. American is more indebted than other airlines, in part because the company purchased new aircraft in the years leading up to the pandemic, using financing because rates were low, Ms. Becker said.
As of Sept. 30, American had $33.45 billion in net debt—a metric that compares total debt to cash—up 4% from a year earlier, according to S&P Global Market Intelligence, a data provider. The company has said it plans to pay down about $15 billion of its total debt by the end of 2025. That figure, which includes long-term debt, short-term borrowings and leases, stood at $44.68 billion as of Sept. 30, down 4% from a year earlier, according to S&P.
Chief Executive Robert Isom—who took the helm earlier this year—in a message to employees said American will remain focused on operating reliably, sustaining profitability and reducing its debt for the remainder of this year and into 2023. The CFO transition is the result of a long-planned succession process, Mr. Isom said.
“We have made tremendous progress in all three areas thanks to Derek’s leadership, and we will only sharpen our focus with Devon as CFO,” he said.
—Colin Kellaher contributed to this article.
Write to Kristin Broughton at Kristin.Broughton@wsj.com
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