FORT WORTH, Texas, April 24, 2015 /PRNewswire/ -- American Airlines
Group Inc. (NASDAQ: AAL) today reported its first quarter 2015
results.
- Reported record first quarter 2015 net profit of
$1.2 billion excluding net special
charges, tripling the Company's first quarter 2014 net profit of
$402 million excluding net special
credits
- Reported record first quarter 2015 GAAP net profit of
$932 million, a $452 million improvement versus the Company's
first quarter 2014 GAAP net profit of $480
million
- Achieved several critical integration milestones during the
quarter, including a combined frequent flyer program and
recalibration of the schedule at the Company's hubs at Chicago
O'Hare and Dallas/Fort Worth. Also
obtained a single operating certificate from the Federal Aviation
Administration (FAA) in early April
- Declared a dividend of $0.10
per share to be paid on May 18, 2015,
to shareholders of record as of May 4,
2015
Excluding net special charges, American Airlines Group's first
quarter 2015 net profit was a record $1.2
billion, or $1.73 per diluted
share. This represents a tripling of the Company's first quarter
2014 net profit excluding net special credits of $402 million, or $0.54 per diluted share. The Company's first
quarter 2015 pretax margin excluding net special charges was a
record 12.7 percent, up 8.6 percentage points from the same period
last year.
On a GAAP basis, the Company reported a record net profit
of $932 million, or $1.30 per
diluted share. This compares to a GAAP net profit of $480 million in the first quarter 2014, or
$0.65 per diluted share.
See the accompanying notes in the Financial Tables section of
this press release for further explanation, including a
reconciliation of GAAP to non-GAAP financial information.
"We are pleased to report record first quarter profits,
exceeding the prior record set just last year," said Doug Parker, American Airlines Group Chairman
and CEO. "The credit belongs to our 100,000 team members who are
working together to restore American to the greatest airline in the
world. We are particularly pleased with the integration
achievements our team has realized and look forward to building on
those successes through 2015 and beyond."
Revenue and Cost Comparisons
While core demand remains
healthy, first quarter 2015 revenue was impacted by competitive
capacity growth, a stronger U.S. dollar and economic softness in
Latin America. Total revenue in
the first quarter was $9.8 billion, a
decrease of 1.7 percent versus the first quarter 2014 on a 0.9
percent decrease in total available seat miles (ASMs). Consolidated
passenger revenue per ASM (PRASM) was 13.44
cents, down 1.7 percent versus the first quarter 2014.
Consolidated passenger yield was 16.82
cents, down 1.2 percent year-over-year.
Total operating expenses in the first quarter were $8.6 billion, a decrease of 7.1 percent compared
to the first quarter 2014 due primarily to a 42.2 percent decrease
in consolidated fuel expense. First quarter mainline cost per
available seat mile (CASM) was 12.80
cents, down 5.2 percent on a 1.7 percent decrease in
mainline ASMs versus the first quarter 2014. Excluding special
charges and fuel, mainline CASM was 9.49
cents, up 5.8 percent compared to the first quarter 2014.
Regional CASM excluding special charges and fuel was 16.47 cents, down 0.9 percent on a 5.7 percent
increase in regional ASMs versus the first quarter 2014.
Liquidity
As of March 31,
2015, the Company had approximately $9.9
billion in total cash and short-term investments, of
which $757 million was restricted. The Company also had an
undrawn revolving credit facility of $1.8
billion.
Also in the first quarter, the Company returned $260 million to its shareholders through the
payment of $70 million in quarterly
dividends and the repurchase of $190
million of common stock, or 3.8 million shares, at an
average price of $49.47 per
share.
Shares repurchased under the buyback program may be made through
a variety of methods, which may include open market purchases,
privately negotiated transactions, block trades or accelerated
share repurchase transactions. Any such repurchases will be made
from time to time subject to market and economic conditions,
applicable legal requirements and other relevant factors. The
program does not obligate the Company to repurchase any specific
number of shares or continue a dividend for any fixed period, and
may be suspended at any time at the Company's discretion.
The Company also purchased approximately 87,230 shares from its
Disputed Claims Reserve at the prevailing market price to satisfy
certain tax obligations resulting from the February 10, 2015 distribution.
Approximately $644 million of the
Company's unrestricted cash and short-term investment balance was
held in Venezuelan bolivars. This balance includes approximately
$621 million valued at 6.3 bolivars to the U.S. dollar and approximately
$23 million valued at 12.0 bolivars to the U.S. dollar, with the rate
depending on the date the Company submitted its repatriation
request to the Venezuelan government. These rates are materially
more favorable than the exchange rates currently prevailing for
other transactions conducted outside of the Venezuelan government's
currency exchange system. The Company's cash balance held in
Venezuelan bolivars decreased $12
million from the December 31,
2014 balance of $656 million
due to payments made in bolivars for local operating
expenditures.
During 2014, the Company significantly reduced capacity in the
Venezuelan market and is no longer accepting bolivars as payment
for airline tickets. The Company is monitoring this situation
closely and continues to evaluate its holdings of Venezuelan
bolivars for additional foreign currency losses or other accounting
adjustments, which could be material, particularly in light of the
additional uncertainty posed by the February
2015 changes to the foreign exchange regulations and the
continued deterioration of economic conditions in Venezuela. More generally, fluctuations in
foreign currencies, including devaluations, cannot be predicted by
the Company and can significantly affect the value of its assets
located outside the United States.
These conditions, as well as any further delays, devaluations or
imposition of more stringent repatriation restrictions, may
materially adversely affect the Company's business, results of
operations and financial condition.
Notable Accomplishments
Merger Accomplishments
- Merged frequent flyer programs by moving US Airways Dividend
Miles members into AAdvantage®
- In April, received a single operating certificate from the FAA
which allows the airline to operate under one certificate
- Achieved a ratified 5-year contract with the carrier's 15,000
pilots that provides industry leading pay rates
- Optimized the Company's flight schedule at Chicago O'Hare
International Airport and Dallas/Fort
Worth International Airport
- Co-located operations at eight more airports across its
network, bringing the total number of co-locations to 114
Finance Accomplishments
- Completed a $500 million
unsecured bond offering priced at 4.625% and a $1.2 billion enhanced equipment trust certificate
(EETC) issue priced at a blended rate of 3.425%. In addition, in
April the Company refinanced its $750
million 2014 slot, gate and route term loan at lower
interest rates and improved collateral terms
- On March 20, the Company was
added to the S&P 500 index
Marketing, Network and Fleet Accomplishments
- Took delivery of the first two Boeing 787 Dreamliners, which
will enter domestic service in May
2015, and begin flying internationally in June 2015. Also, as part of its ongoing fleet
renewal program, the Company took delivery of 18 new mainline
aircraft, and retired its last Boeing 767-200
- Signed a codeshare agreement with Korean Air to place its code
on American flights between Dallas/Fort
Worth International Airport and Seoul, South Korea
- Became the official airline partner of the Los Angeles Clippers
and was named the official airline of the Chicago Cubs and
Wrigley Field
Community Relations Accomplishments
- Commemorated an historic day for the Civil Rights movement by
operating a charter aircraft from Washington, D.C., to Montgomery, Ala. for the 50th
anniversary of the March on Selma
- Launched Fuel Smart, a company-wide fuel saving program to
reduce usage of aircraft auxiliary power units when jets are parked
on the ground; a portion of the savings generated by this reduced
usage will benefit Air Compassion for Veterans, a nonprofit
organization providing air transportation to injured veterans and
active duty military traveling for medical, rehabilitation, or
other veteran-related purposes
- Celebrated 30 Medal of Honor recipients by operating a charter
flight from New York to
Washington so those recipients
could participate in National Medal of Honor festivities
Special Items
In the first quarter, the Company recognized $311 million in net special charges,
including:
- $223 million in merger related
integration expenses, including $216
million in mainline special charges and $7 million in regional special charges
- $99 million in charges relating
to the Company's new pilot joint collective bargaining
agreement
- $6 million in net credits for
bankruptcy related items, principally consisting of fair value
adjustments for bankruptcy settlement obligations
- $8 million non-operating net
special credits comprised of a $17
million early debt extinguishment gain on the repayment of
American's AAdvantage® loan with Citibank, offset in
part by a $9 million charge related
to the prepayment of certain aircraft financings
- $9 million in tax special charges
related to certain indefinite-lived intangible assets
Conference Call / Webcast Details
The Company will conduct a live audio webcast of its
earnings call today at 7:30 a.m. CT, which will be available
to the public on a listen-only basis at aa.com/investorrelations.
An archive of the webcast will be available on the website
through May 24.
Investor Guidance
For financial forecasting detail, please refer to the Company's
investor relations update, to be filed with the Securities and
Exchange Commission on Form 8-K immediately following its
7:30 a.m. CT conference call. This
filing will be available at aa.com/investorrelations.
About American Airlines Group
American Airlines Group (NASDAQ: AAL) is the holding company for
American Airlines and US Airways. Together with regional partners,
operating as American Eagle and US Airways Express, the airlines
operate an average of nearly 6,700 flights per day to nearly 350
destinations in more than 50 countries from its hubs in
Charlotte, Chicago, Dallas/Fort
Worth, Los Angeles,
Miami, New York, Philadelphia, Phoenix and Washington, D.C. The American Airlines
AAdvantage® program allows members to earn miles for
travel, vacation packages, car rentals, hotel stays and everyday
purchases. Members can redeem miles for tickets as well as upgrades
to First Class and Business Class, vacation packages, car rentals,
hotel stays and retail products. American is a founding member of
the oneworld alliance, whose members and members-elect serve nearly
1,000 destinations with 14,250 daily flights to 150 countries.
Connect with American on Twitter @AmericanAir and at
Facebook.com/AmericanAirlines.
Cautionary Statement Regarding Forward-Looking Statements and
Information
This document includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be identified by words such as
"may," "will," "expect," "intend," "anticipate," "believe,"
"estimate," "plan," "project," "could," "should," "would,"
"continue," "seek," "target," "guidance," "outlook," "if current
trends continue," "optimistic," "forecast" and other similar words.
Such statements include, but are not limited to, statements about
future financial and operating results, our plans, objectives,
estimates, expectations and intentions, and other statements that
are not historical facts, such as, without limitation, statements
that discuss the possible future effects of current known trends or
uncertainties, or which indicate that the future effects of known
trends or uncertainties cannot be predicted, guaranteed or assured.
These forward-looking statements are based on the current
objectives, beliefs and expectations of the Company, and they are
subject to significant risks and uncertainties that may cause
actual results and financial position and timing of certain events
to differ materially from the information in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, the following: significant operating losses in the
future; downturns in economic conditions that adversely affect the
Company's business; the impact of continued periods of high
volatility in fuel costs, increased fuel prices and significant
disruptions in the supply of aircraft fuel; competitive practices
in the industry, including the impact of low cost carriers, airline
alliances and industry consolidation; the challenges and costs of
integrating operations and realizing anticipated synergies and
other benefits of the merger transaction with US Airways Group,
Inc.; the Company's substantial indebtedness and other obligations
and the effect they could have on the Company's business and
liquidity; an inability to obtain sufficient financing or other
capital to operate successfully and in accordance with the
Company's current business plan; increased costs of financing, a
reduction in the availability of financing and fluctuations in
interest rates; the effect the Company's high level of fixed
obligations may have on its ability to fund general corporate
requirements, obtain additional financing and respond to
competitive developments and adverse economic and industry
conditions; the Company's significant pension and other
post-employment benefit funding obligations; the impact of any
failure to comply with the covenants contained in financing
arrangements; provisions in credit card processing and other
commercial agreements that may materially reduce the Company's
liquidity; the impact of union disputes, employee strikes and other
labor-related disruptions; any inability to maintain labor costs at
competitive levels; interruptions or disruptions in service at one
or more of the Company's hub airports; costs of ongoing data
security compliance requirements and the impact of any significant
data security breach; any inability to obtain and maintain adequate
facilities, infrastructure and slots to operate the Company's
flight schedule and expand or change its route network; the
Company's reliance on third-party regional operators or third-party
service providers that have the ability to affect the Company's
revenue and the public's perception about its services; any
inability to effectively manage the costs, rights and functionality
of third-party distribution channels on which the Company relies;
extensive government regulation, which may result in increases in
the Company's costs, disruptions to the Company's operations,
limits on the Company's operating flexibility, reductions in the
demand for air travel, and competitive disadvantages; the impact of
the heavy taxation on the airline industry; changes to the
Company's business model that may not successfully increase
revenues and may cause operational difficulties or decreased
demand; the loss of key personnel or inability to attract and
retain additional qualified personnel; the impact of conflicts
overseas, terrorist attacks and ongoing security concerns; the
global scope of the Company's business and any associated economic
and political instability or adverse effects of events,
circumstances or government actions beyond its control, including
the impact of foreign currency exchange rate fluctuations and
limitations on the repatriation of cash held in foreign countries;
the impact of environmental regulation; the Company's reliance on
technology and automated systems and the impact of any failure of
these technologies or systems; challenges in integrating the
Company's computer, communications and other technology systems;
losses and adverse publicity stemming from any accident involving
any of the Company's aircraft or the aircraft of its regional or
codeshare operators; delays in scheduled aircraft deliveries, or
other loss of anticipated fleet capacity, and failure of new
aircraft to perform as expected; the Company's dependence on a
limited number of suppliers for aircraft, aircraft engines and
parts; the impact of changing economic and other conditions beyond
the Company's control, including global events that affect travel
behavior such as an outbreak of a contagious disease, and
volatility and fluctuations in the Company's results of operations
due to seasonality; the effect of a higher than normal number of
pilot retirements and a potential shortage of pilots; the impact of
possible future increases in insurance costs or reductions in
available insurance coverage; the effect of a lawsuit that was
filed in connection with the merger transaction with US Airways
Group, Inc. and remains pending; an inability to use net operating
losses carried forward from prior taxable years (NOL
Carryforwards); any impairment in the amount of goodwill the
Company recorded as a result of the application of the acquisition
method of accounting and an inability to realize the full value of
the Company's and American Airlines' respective intangible or
long-lived assets and any material impairment charges that would be
recorded as a result; price volatility of the Company's common
stock; the effects of the Company's capital deployment program and
the limitation, suspension or discontinuation of the Company's
share repurchase program or dividend payments thereunder; delay or
prevention of stockholders' ability to change the composition of
the Company's board of directors and the effect this may have on
takeover attempts that some of the Company's stockholders might
consider beneficial; the effect of provisions of the Company's
Restated Certificate of Incorporation and Amended and Restated
Bylaws that limit ownership and voting of its equity interests,
including its common stock; the effect of limitations in the
Company's Restated Certificate of Incorporation on acquisitions and
dispositions of its common stock designed to protect its NOL
Carryforwards and certain other tax attributes, which may limit the
liquidity of its common stock; and other economic, business,
competitive, and/or regulatory factors affecting the Company's
business, including those set forth in the Company's Quarterly
Report on Form 10-Q for the period ended March 31, 2015 (especially in Part II, Item 1A,
Risk Factors and Part I, Item 2, Management's Discussion and
Analysis of Financial Condition and Results of Operations sections)
and other risks and uncertainties listed from time to time in the
Company's other filings with the SEC. There may be other factors of
which the Company is not currently aware that may affect matters
discussed in the forward-looking statements and may also cause
actual results to differ materially from those discussed. Any
forward-looking statements speak only as of the date hereof or as
of the dates indicated in the statements. The Company does not
assume any obligation to publicly update or supplement any
forward-looking statement to reflect actual results, changes in
assumptions or changes in other factors affecting these
forward-looking statements other than as required by law.
American Airlines
Group Inc.
|
GAAP Results
- Consolidated Statements of Operations
|
(In millions,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
Percent
|
|
2015
|
|
2014
|
Change
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
Mainline passenger
|
$
6,989
|
|
$
7,258
|
(3.7)
|
Regional passenger
|
1,452
|
|
1,407
|
3.2
|
Cargo
|
194
|
|
206
|
(5.9)
|
Other
|
1,192
|
|
1,124
|
6.0
|
Total operating revenues
|
9,827
|
|
9,995
|
(1.7)
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Aircraft fuel and related taxes
|
1,544
|
|
2,711
|
(43.0)
|
Salaries, wages and benefits
|
2,373
|
|
2,119
|
12.0
|
Regional expenses:
|
|
|
|
|
Fuel
|
311
|
|
500
|
(37.8)
|
Other
|
1,151
|
|
1,094
|
5.1
|
Maintenance, materials and repairs
|
494
|
|
485
|
1.8
|
Other rent and landing fees
|
408
|
|
424
|
(3.9)
|
Aircraft rent
|
317
|
|
320
|
(0.9)
|
Selling expenses
|
336
|
|
401
|
(16.3)
|
Depreciation and amortization
|
336
|
|
307
|
9.6
|
Special items, net
|
303
|
|
(137)
|
nm
|
Other
|
1,038
|
|
1,041
|
(0.3)
|
Total operating expenses
|
8,611
|
|
9,265
|
(7.1)
|
|
|
|
|
|
Operating income
|
1,216
|
|
730
|
66.6
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
Interest income
|
10
|
|
7
|
39.5
|
Interest expense, net
|
(210)
|
|
(243)
|
(13.7)
|
Other, net
|
(73)
|
|
(1)
|
nm
|
Total nonoperating expense, net
|
(273)
|
|
(237)
|
15.2
|
|
|
|
|
|
Income before income
taxes
|
943
|
|
493
|
91.3
|
|
|
|
|
|
Income tax
provision
|
11
|
|
13
|
(17.5)
|
|
|
|
|
|
Net income
|
$
932
|
|
$
480
|
94.2
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
Basic
|
$
1.34
|
|
$
0.66
|
|
Diluted
|
$
1.30
|
|
$
0.65
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
Basic
|
696,415
|
|
723,971
|
|
Diluted
|
716,930
|
|
741,335
|
|
|
|
|
|
|
Note: Percent
change may not recalculate due to rounding.
|
|
|
|
American Airlines
Group Inc.
|
Consolidated
Operating Statistics
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
44,849
|
|
45,828
|
|
(2.1)
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
55,854
|
|
56,831
|
|
(1.7)
|
%
|
|
Passenger load factor
(percent)
|
|
80.3
|
|
80.6
|
|
(0.3)
|
pts
|
|
Yield
(cents)
|
|
15.58
|
|
15.84
|
|
(1.6)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
12.51
|
|
12.77
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
33,951
|
|
34,843
|
|
(2.6)
|
%
|
|
Departures
(thousands)
|
|
269
|
|
279
|
|
(3.5)
|
%
|
|
Aircraft at end of
period
|
|
973
|
|
977
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands)
|
|
833
|
|
853
|
|
(2.4)
|
%
|
|
Average stage length
(miles)
|
|
1,195
|
|
1,189
|
|
0.5
|
%
|
|
Fuel consumption
(gallons in millions)
|
|
846
|
|
874
|
|
(3.2)
|
%
|
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
1.83
|
|
3.10
|
|
(41.1)
|
%
|
|
Full-time equivalent
employees at end of period
|
|
97,500
|
|
93,400
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
12.80
|
|
13.50
|
|
(5.2)
|
%
|
|
Operating cost per
ASM excluding special items (cents)
|
|
12.26
|
|
13.74
|
|
(10.8)
|
%
|
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
9.49
|
|
8.97
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A)
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
5,341
|
|
5,058
|
|
5.6
|
%
|
|
Available seat miles
(millions)
|
|
6,937
|
|
6,561
|
|
5.7
|
%
|
|
Passenger load factor
(percent)
|
|
77.0
|
|
77.1
|
|
(0.1)
|
pts
|
|
Yield
(cents)
|
|
27.19
|
|
27.82
|
|
(2.2)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
20.94
|
|
21.45
|
|
(2.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
12,243
|
|
11,709
|
|
4.6
|
%
|
|
Aircraft at end of
period
|
|
577
|
|
560
|
|
3.0
|
%
|
|
Fuel consumption
(gallons in millions)
|
|
167
|
|
161
|
|
3.7
|
%
|
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
1.86
|
|
3.10
|
|
(40.0)
|
%
|
|
Full-time equivalent
employees at end of period (B)
|
|
19,300
|
|
18,000
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
21.07
|
|
24.30
|
|
(13.3)
|
%
|
|
Operating cost per
ASM excluding special items (cents)
|
|
20.96
|
|
24.24
|
|
(13.6)
|
%
|
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
16.47
|
|
16.62
|
|
(0.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
50,190
|
|
50,886
|
|
(1.4)
|
%
|
|
Available seat miles
(millions)
|
|
62,791
|
|
63,392
|
|
(0.9)
|
%
|
|
Cargo ton miles
(millions)
|
|
553
|
|
560
|
|
(1.2)
|
%
|
|
Passenger load factor
(percent)
|
|
79.9
|
|
80.3
|
|
(0.4)
|
pts
|
|
Yield
(cents)
|
|
16.82
|
|
17.03
|
|
(1.2)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
13.44
|
|
13.67
|
|
(1.7)
|
%
|
|
Total revenue per ASM
(cents)
|
|
15.65
|
|
15.77
|
|
(0.7)
|
%
|
|
Cargo yield per ton
mile (cents)
|
|
35.14
|
|
36.88
|
|
(4.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
46,194
|
|
46,552
|
|
(0.8)
|
%
|
|
Aircraft at end of
period
|
|
1,550
|
|
1,537
|
|
0.8
|
%
|
|
Fuel consumption
(gallons in millions)
|
|
1,013
|
|
1,035
|
|
(2.1)
|
%
|
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
1.83
|
|
3.10
|
|
(41.0)
|
%
|
|
Full-time equivalent
employees at end of period (B)
|
|
116,800
|
|
111,400
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
13.71
|
|
14.62
|
|
(6.2)
|
%
|
|
Operating cost per
ASM excluding special items (cents)
|
|
13.22
|
|
14.83
|
|
(10.8)
|
%
|
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
10.26
|
|
9.76
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Regional
includes wholly owned regional airline subsidiaries and operating
results from capacity purchase carriers.
|
|
(B) Regional
full-time equivalent employees only include our wholly owned
regional airline subsidiaries.
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines
Group Inc.
|
Consolidated
Mainline Revenue Statistics by Region
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
29,586
|
|
30,176
|
|
(2.0)
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
35,672
|
|
35,989
|
|
(0.9)
|
%
|
|
Passenger load factor
(percent)
|
|
82.9
|
|
83.8
|
|
(0.9)
|
pts
|
|
Yield
(cents)
|
|
15.80
|
|
15.79
|
|
0.1
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
13.10
|
|
13.24
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
8,182
|
|
8,683
|
|
(5.8)
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
10,593
|
|
11,358
|
|
(6.7)
|
%
|
|
Passenger load factor
(percent)
|
|
77.2
|
|
76.4
|
|
0.8
|
pts
|
|
Yield
(cents)
|
|
16.54
|
|
17.82
|
|
(7.2)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
12.78
|
|
13.62
|
|
(6.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
4,772
|
|
5,264
|
|
(9.4)
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
6,768
|
|
7,405
|
|
(8.6)
|
%
|
|
Passenger load factor
(percent)
|
|
70.5
|
|
71.1
|
|
(0.6)
|
pts
|
|
Yield
(cents)
|
|
14.59
|
|
14.00
|
|
4.2
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
10.29
|
|
9.96
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
2,309
|
|
1,705
|
|
35.4
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
2,820
|
|
2,079
|
|
35.6
|
%
|
|
Passenger load factor
(percent)
|
|
81.9
|
|
82.0
|
|
(0.1)
|
pts
|
|
Yield
(cents)
|
|
11.49
|
|
12.32
|
|
(6.8)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
9.41
|
|
10.11
|
|
(6.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total
International
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
15,263
|
|
15,652
|
|
(2.5)
|
%
|
|
Available seat miles
(ASM) (millions)
|
|
20,181
|
|
20,842
|
|
(3.2)
|
%
|
|
Passenger load factor
(percent)
|
|
75.6
|
|
75.1
|
|
0.5
|
pts
|
|
Yield
(cents)
|
|
15.17
|
|
15.94
|
|
(4.8)
|
%
|
|
Passenger revenue per
ASM (cents)
|
|
11.47
|
|
11.97
|
|
(4.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
Reconciliation of
GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines
Group Inc. (the "Company") is providing the reconciliation of
reported non-GAAP financial measures to their comparable financial
measures on a GAAP basis. The Company believes that the non-GAAP
financial measures provide investors the ability to measure
financial performance excluding special items, which is more
indicative of the Company's ongoing performance and is more
comparable to measures reported by other major airlines. The
Company believes that the presentation of mainline and regional
CASM excluding fuel is useful to investors because both the cost
and availability of fuel are subject to many economic and political
factors beyond the Company's control. Management uses mainline and
regional CASM excluding special items and fuel to evaluate the
Company's operating performance.
|
|
|
|
|
|
|
|
|
|
American Airlines
Group Inc.
|
|
|
3 Months Ended
March 31,
|
Percent
Change
|
|
|
|
|
|
2015
|
|
2014
|
|
|
Reconciliation of
Income Before Income Taxes Excluding
|
|
(In millions, except
per share amounts)
|
|
|
Special
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes as reported
|
|
|
$ 943
|
|
$ 493
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
303
|
|
(137)
|
|
|
Regional
operating special items, net (2)
|
|
|
7
|
|
4
|
|
|
Nonoperating special items, net (3)
|
|
|
(8)
|
|
47
|
|
|
Income before income
taxes as adjusted for special items
|
|
$ 1,245
|
|
$ 407
|
206%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
Calculation of
Pre-Tax Margin Excluding Special Items
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes as adjusted for special items
|
|
$ 1,245
|
|
$ 407
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues
|
|
|
$ 9,827
|
|
$ 9,995
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin
excluding special items
|
|
|
12.7%
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
Percent
Change
|
|
Reconciliation of
Net Income Excluding Special Items
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net income as
reported
|
|
|
$ 932
|
|
$ 480
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
303
|
|
(137)
|
|
|
Regional
operating special items, net (2)
|
|
|
7
|
|
4
|
|
|
Nonoperating special items, net (3)
|
|
|
(8)
|
|
47
|
|
|
Non-cash
income tax provision (4)
|
|
|
9
|
|
8
|
|
|
Net income as
adjusted for special items
|
|
|
$ 1,243
|
|
$ 402
|
209%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
Reconciliation of
Basic and Diluted Earnings Per Share As
|
|
2015
|
|
2014
|
|
|
Adjusted for
Special Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as
adjusted for special items
|
|
|
$ 1,243
|
|
$ 402
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands):
|
|
|
|
|
|
|
Basic
|
|
|
|
696,415
|
|
723,971
|
|
|
Diluted
|
|
|
|
716,930
|
|
741,335
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
adjusted for special items:
|
|
|
|
|
|
|
Basic
|
|
|
|
$
1.79
|
|
$
0.56
|
|
|
Diluted
|
|
|
|
$
1.73
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
Percent
Change
|
|
Reconciliation of
Operating Income Excluding Special Items
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as
reported
|
|
|
$ 1,216
|
|
$ 730
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
303
|
|
(137)
|
|
|
Regional
operating special items, net (2)
|
|
|
7
|
|
4
|
|
|
Operating income as
adjusted for special items
|
|
$ 1,526
|
|
$ 597
|
156%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2015
|
|
2014
|
|
|
Items and Fuel -
Mainline only
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
$ 8,611
|
|
$ 9,265
|
|
|
Less regional
expenses:
|
|
|
|
|
|
|
|
Fuel
|
|
|
|
(311)
|
|
(500)
|
|
|
Other
|
|
|
|
(1,151)
|
|
(1,094)
|
|
|
Total mainline
operating expenses
|
|
|
7,149
|
|
7,671
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
(303)
|
|
137
|
|
|
Mainline operating
expenses, excluding special items
|
|
6,846
|
|
7,808
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes
|
|
|
(1,544)
|
|
(2,711)
|
|
|
Mainline operating
expenses, excluding special items and fuel
|
|
$ 5,302
|
|
$ 5,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM
|
|
|
12.80
|
|
13.50
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net per ASM (1)
|
|
|
(0.54)
|
|
0.24
|
|
|
Mainline operating
expenses per ASM, excluding special items
|
|
12.26
|
|
13.74
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
|
(2.76)
|
|
(4.77)
|
|
|
Mainline operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
and fuel
|
|
|
|
9.49
|
|
8.97
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2015
|
|
2014
|
|
|
Items and Fuel -
Regional only
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses
|
|
|
$ 1,462
|
|
$ 1,594
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net (2)
|
|
|
(7)
|
|
(4)
|
|
|
Regional operating
expenses, excluding special items
|
|
1,455
|
|
1,590
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes
|
|
|
(311)
|
|
(500)
|
|
|
Regional operating
expenses, excluding special items and fuel
|
|
$ 1,144
|
|
$ 1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM
|
|
|
21.07
|
|
24.30
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM (2)
|
|
(0.11)
|
|
(0.06)
|
|
|
Regional operating
expenses per ASM, excluding special items
|
|
20.96
|
|
24.24
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
|
(4.48)
|
|
(7.62)
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel
|
|
16.47
|
|
16.62
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
March 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2015
|
|
2014
|
|
|
Items and Fuel -
Total Mainline and Regional
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
$ 8,611
|
|
$ 9,265
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
(303)
|
|
137
|
|
|
Regional
operating special items, net (2)
|
|
|
(7)
|
|
(4)
|
|
|
Total operating
expenses, excluding special items
|
|
8,301
|
|
9,398
|
|
|
|
|
|
|
|
|
|
|
|
Fuel:
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
|
(1,544)
|
|
(2,711)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
|
(311)
|
|
(500)
|
|
|
Total operating
expenses, excluding special items and fuel
|
|
$ 6,446
|
|
$ 6,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM
|
|
|
13.71
|
|
14.62
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM:
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
|
(0.48)
|
|
0.22
|
|
|
Regional
operating special items, net (2)
|
|
|
(0.01)
|
|
(0.01)
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
13.22
|
|
14.83
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per
ASM:
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
|
(2.46)
|
|
(4.28)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
|
(0.50)
|
|
(0.79)
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
and fuel
|
|
|
|
10.26
|
|
9.76
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The 2015 first
quarter mainline operating special items totaled a net charge of
$303 million, which principally included $216 million of merger
integration expenses related to information technology,
professional fees, severance, share-based compensation, fleet
restructuring, re-branding of aircraft and airport facilities,
relocation and training. In addition, the Company recorded a net
$99 million charge principally related to its new pilot joint
collective bargaining agreement. These charges were offset in part
by a net $6 million credit for bankruptcy related items primarily
consisting of fair value adjustments for bankruptcy settlement
obligations.
The 2014 first quarter mainline operating special items totaled a
net credit of $137 million, which principally included a $309
million gain on the sale of Slots at Ronald Reagan Washington
National Airport and a net $32 million credit for bankruptcy
related items primarily consisting of fair value adjustments for
bankruptcy settlement obligations. These special credits were
offset in part by $202 million of merger integration expenses
related to alignment of labor union contracts, information
technology, professional fees, severance and retention, share-based
compensation, re-branding of aircraft and airport facilities,
relocation and training.
|
|
|
|
|
|
|
|
|
|
(2)
|
The 2015 and 2014
first quarter regional operating special items principally related
to merger integration expenses.
|
|
|
|
|
|
|
|
|
|
(3)
|
The 2015 first
quarter nonoperating special items totaled a net credit of $8
million primarily due to a $17 million early debt extinguishment
gain associated with the repayment of American's AAdvantage loan
with Citibank, offset in part by a $9 million charge principally
related to a non-cash write off of unamortized debt discount
associated with the prepayment of certain aircraft financings.
The 2014 first quarter nonoperating special items totaled a net
charge of $47 million principally due to non-cash interest
accretion of $31 million on the bankruptcy settlement obligations
and $13 million for Venezuelan foreign currency
losses.
|
|
|
|
|
|
|
|
|
|
(4)
|
The 2015 and 2014
first quarter tax special items were the result of a non-cash
deferred income tax provision related to certain indefinite-lived
intangible assets.
|
American Airlines
Group Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
1,048
|
|
$
994
|
Short-term investments
|
8,125
|
|
6,309
|
Restricted cash and short-term investments
|
757
|
|
774
|
Accounts
receivable, net
|
1,826
|
|
1,771
|
Aircraft
fuel, spare parts and supplies, net
|
995
|
|
1,004
|
Prepaid
expenses and other
|
1,378
|
|
1,260
|
Total current
assets
|
14,129
|
|
12,112
|
|
|
|
|
Operating property
and equipment
|
|
|
|
Flight
equipment
|
29,273
|
|
28,213
|
Ground
property and equipment
|
6,013
|
|
5,900
|
Equipment purchase deposits
|
1,265
|
|
1,230
|
Total property and
equipment, at cost
|
36,551
|
|
35,343
|
Less
accumulated depreciation and amortization
|
(12,509)
|
|
(12,259)
|
Total property and
equipment, net
|
24,042
|
|
23,084
|
|
|
|
|
Other
assets
|
|
|
|
Goodwill
|
4,091
|
|
4,091
|
Intangibles, net
|
2,281
|
|
2,240
|
Other
assets
|
2,211
|
|
2,244
|
Total other
assets
|
8,583
|
|
8,575
|
|
|
|
|
Total
assets
|
$
46,754
|
|
$
43,771
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Current
maturities of long-term debt and capital leases
|
$
1,284
|
|
$
1,708
|
Accounts
payable
|
1,587
|
|
1,377
|
Accrued
salaries and wages
|
1,009
|
|
1,194
|
Air
traffic liability
|
5,415
|
|
4,252
|
Frequent
flyer liability
|
2,776
|
|
2,807
|
Other
accrued liabilities
|
2,162
|
|
2,097
|
Total current
liabilities
|
14,233
|
|
13,435
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
Long-term debt and capital leases, net of current
maturities
|
17,638
|
|
16,196
|
Pension
and postretirement benefits
|
7,517
|
|
7,562
|
Deferred
gains and credits, net
|
788
|
|
829
|
Bankruptcy settlement obligations
|
275
|
|
325
|
Other
liabilities
|
3,539
|
|
3,403
|
Total noncurrent
liabilities
|
29,757
|
|
28,315
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
7
|
|
7
|
Additional paid-in capital
|
15,049
|
|
15,135
|
Accumulated other comprehensive loss
|
(4,590)
|
|
(4,559)
|
Accumulated deficit
|
(7,702)
|
|
(8,562)
|
Total stockholders'
equity
|
2,764
|
|
2,021
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
46,754
|
|
$
43,771
|
Logo - http://photos.prnewswire.com/prnh/20140416/75651
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-airlines-group-reports-record-first-quarter-2015-profit-300071650.html
SOURCE American Airlines Group Inc.