FORT WORTH, Texas, July 24, 2015 /PRNewswire/ -- American
Airlines Group Inc. (NASDAQ: AAL) today reported its second quarter
2015 results.
- Reported record quarterly net profit of $1.9 billion excluding net special charges, a 27
percent increase versus the second quarter 2014
- Reported record quarterly GAAP net profit of $1.7 billion, a 97 percent increase versus last
year's second quarter
- Repurchased over $750 million
of common stock and authorized an additional $2 billion share repurchase program
- Declared a dividend of $0.10
per share to be paid on August 24,
2015, to shareholders of record as of August 10, 2015
American Airlines Group's second quarter 2015 net profit,
excluding net special charges, was a record $1.9 billion, or $2.62 per diluted share versus a second quarter
2014 net profit excluding net special charges of $1.5 billion, or $1.98 per diluted share. The Company's second
quarter 2015 pretax margin excluding net special charges was a
record 17.2 percent, up 4.4 percentage points from the same period
last year.
On a GAAP basis, the Company reported a record net profit
of $1.7 billion, or $2.41 per
diluted share. This compares to a GAAP net profit of $864 million in the second quarter 2014, or
$1.17 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.
"Reporting the highest quarterly profit in our history is
another indication that our team is on the path to restoring
American as the greatest airline in the world," said Chairman and
CEO Doug Parker. "These results are
especially remarkable considering the significant and successful
work underway to integrate two airlines. The more than 100,000
dedicated team members of American Airlines are doing a phenomenal
job and we are grateful for their commitment to our customers."
Revenue and Cost Comparisons
Total revenue in the second quarter was $10.8 billion, a decrease of 4.6 percent versus
the second quarter 2014 on a 1.9 percent increase in total
available seat miles (ASMs). Consolidated passenger revenue per ASM
(PRASM) was 13.57 cents, down 6.9
percent versus the second quarter 2014. Consolidated passenger
yield was 16.28 cents, down 6.1
percent year-over-year.
Total operating expenses in the second quarter were $8.9 billion, a decrease of 10.5 percent compared
to the second quarter 2014, due primarily to a 36.9 percent
decrease in consolidated fuel expense. Second quarter mainline cost
per available seat mile (CASM) was 11.87
cents, down 12.8 percent on a 1.5 percent increase in
mainline ASMs versus the second quarter 2014. Excluding net special
charges and fuel, mainline CASM was 8.77
cents, up 2.5 percent compared to the second quarter 2014.
Regional CASM excluding special charges and fuel was 16.02 cents, up 1.4 percent on a 5.5 percent
increase in regional ASMs versus the second quarter 2014.
Cash and Investments
As of June 30, 2015, the Company
had approximately $9.7 billion in total cash and
short-term investments, of which $747 million was restricted.
The Company also had an undrawn revolving credit facility of
$1.8 billion.
American continues to invest in its product. As part of an
extensive fleet renewal plan that has made American's fleet the
youngest of any U.S. network airline, the Company expects to spend
$5.4 billion on new aircraft this
year. During the second quarter, the Company took delivery of 24
new mainline aircraft and nine new regional aircraft and retired 34
older mainline and eight older regional aircraft. In addition to
this fleet renewal program, American is in the midst of investing
$2 billion to further enhance its
product, including improvements to aircraft interiors,
international Wi-Fi connectivity and upgrades to its Admirals Club
lounges.
In the second quarter, the Company returned $823 million to its shareholders through the
payment of $70 million in quarterly
dividends and the repurchase of $753
million of common stock, or 17.3 million shares, at an
average price of $43.53 per share.
When combined with the dividends and shares repurchased during the
first quarter, the Company has returned approximately $1.1 billion to its shareholders in the first
half of 2015, including $943 million
of shares repurchased under the existing $2
billion share repurchase program approved in January 2015.
Due to the Company's strong financial performance, its projected
cash flow and the repurchase activity to date, the American
Airlines Group Board of Directors has authorized an additional
$2 billion share repurchase program
to be completed by December 31, 2016.
This brings the total amount of share repurchase programs
authorized in 2015 to $4 billion. The
Company also declared a dividend of $0.10 per share to be paid on August 24, 2015, to shareholders of record as of
August 10, 2015.
Share repurchases under the share repurchase 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.
Approximately $629 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 per U.S. dollar and approximately
$8 million valued at 12.8 bolivars per 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.
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 recent 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
Integration Accomplishments
- Received a single operating certificate from the Federal
Aviation Administration (FAA) on April
8, meaning that American Airlines, Inc. and US Airways, Inc.
are now regulated by the FAA as one airline
- Co-located operations at nine additional airports across the
network, bringing the total number of co-locations to 123
- Merged American Airlines Vacations and US Airways
Vacations
- In July, the Company began its switch to a single reservation
system. Starting Oct. 17, American
will operate as one airline for its customers with a single
reservation system, single website and single mobile app. To
accomplish this, earlier this month American changed all US Airways
coded flights scheduled for Oct. 17
and beyond to the American code. All US Airways reservations
currently booked for travel beginning Oct.
17 have been moved to the American reservation system
Marketing Accomplishments
- Launched new service from Dallas/Fort
Worth International Airport to Beijing, China; New
York's JFK International Airport to Birmingham, England and Edinburgh, Scotland and Miami International Airport to Frankfurt, Germany
- Launched new Latin American service from Los Angeles International Airport to
Guadalajara, Mexico and
Belize City, Belize; Dallas/Fort
Worth International Airport to Grand Cayman and Managua, Nicaragua and Miami International Airport to Monterrey, Mexico and Barranquilla,
Colombia
- Received DOT authority to serve Los
Angeles International Airport to Tokyo Haneda Airport, with
service planned to begin in the fourth quarter 2015
- Announced new nonstop service between Los Angeles International Airport and
Sydney, Australia, to begin
Dec. 17, 2015, pending regulatory
approvals, while strengthening our relationship with
oneworld partner Qantas
- Opened a new 25,000-square foot dedicated pharmaceutical cargo
cold storage facility in Philadelphia
- Recognized by Air Cargo News as the Cargo Airline of the
Year Award for 2015. This is the first time an airline in the
Americas has won the award in its 32-year history. The Company was
also named the Best Cargo Airline of the Americas for the eighth
consecutive year
- For the fourth consecutive year, the American Airlines
AAdvantage® program was named Program of the Year at the
2015 Freddie Awards, one of the most prestigious honors for loyalty
programs in the travel industry. American also took home honors for
Best Elite Program
Finance Accomplishments
- The Company refinanced its $750
million and $1.9 billion
secured term loan facilities at lower interest rates and improved
collateral terms. In addition, the Company also extended the
maturity of its $1.9 billion term
loan facility by one year to June
2020. Subsequently, both credit facilities received a 25
basis point reduction in interest cost due to the Company's
improved credit ratings from Standard & Poor's and Moody's
Community Relations Accomplishments
- Recognized four employees with the 2015 Earl G. Graves Award
for Leadership in Diversity and Inclusion for their work in making
a lasting impression in the workplace, in the community and as role
models in diversity
- Provided a charter flight carrying 44 World War II veterans
from Los Angeles International
Airport to New Orleans for a visit
to The National WWII Museum
- Launched a disaster relief campaign with the American Red Cross
and UNICEF for Nepal and raised
approximately $100,000 from our
customers and employees
Special Items
In the second quarter, the Company recognized $150 million in net special charges,
including:
- $231 million in merger related
integration expenses, including $221
million in mainline special charges and $10 million in regional special charges
- $77 million in net special
credits, including a $68 million
credit for bankruptcy related items, principally consisting of fair
value adjustments for bankruptcy settlement obligations
- $11 million non-operating net
special credits comprised of a $22
million gain associated with the sale of an investment,
offset in part by $11 million in
charges principally related to non-cash write offs of unamortized
debt discount and debt issuance costs associated with refinancing
the Company's secured term loan facilities
- $7 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 August 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. 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. This year American topped Fortune
Magazine's list of best business turnarounds and its stock was
added to the S&P 500 index. 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 June 30, 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.
|
Condensed
Consolidated Statements of Operations
|
(In millions,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
June 30,
|
|
Percent
|
|
6 Months Ended
June 30,
|
|
Percent
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Mainline passenger
|
$
7,655
|
|
$
8,213
|
|
(6.8)
|
|
$
14,644
|
|
$
15,471
|
|
(5.3)
|
Regional passenger
|
1,759
|
|
1,707
|
|
3.1
|
|
3,211
|
|
3,114
|
|
3.1
|
Cargo
|
194
|
|
221
|
|
(12.3)
|
|
388
|
|
428
|
|
(9.2)
|
Other
|
1,219
|
|
1,214
|
|
0.4
|
|
2,411
|
|
2,338
|
|
3.1
|
Total operating revenues
|
10,827
|
|
11,355
|
|
(4.6)
|
|
20,654
|
|
21,351
|
|
(3.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes
|
1,774
|
|
2,830
|
|
(37.3)
|
|
3,318
|
|
5,541
|
|
(40.1)
|
Salaries, wages and benefits
|
2,364
|
|
2,163
|
|
9.3
|
|
4,737
|
|
4,282
|
|
10.6
|
Regional expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
349
|
|
535
|
|
(34.8)
|
|
660
|
|
1,035
|
|
(36.2)
|
Other
|
1,208
|
|
1,122
|
|
7.7
|
|
2,359
|
|
2,216
|
|
6.4
|
Maintenance, materials and repairs
|
502
|
|
514
|
|
(2.3)
|
|
995
|
|
999
|
|
(0.3)
|
Other rent and landing fees
|
451
|
|
441
|
|
2.0
|
|
859
|
|
866
|
|
(0.9)
|
Aircraft rent
|
316
|
|
312
|
|
1.4
|
|
633
|
|
631
|
|
0.3
|
Selling expenses
|
350
|
|
402
|
|
(13.0)
|
|
686
|
|
804
|
|
(14.6)
|
Depreciation and amortization
|
340
|
|
319
|
|
6.6
|
|
676
|
|
626
|
|
8.1
|
Special items, net
|
144
|
|
251
|
|
(42.4)
|
|
447
|
|
114
|
|
nm
|
Other
|
1,108
|
|
1,067
|
|
3.9
|
|
2,147
|
|
2,108
|
|
1.9
|
Total operating expenses
|
8,906
|
|
9,956
|
|
(10.5)
|
|
17,517
|
|
19,222
|
|
(8.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
1,921
|
|
1,399
|
|
37.3
|
|
3,137
|
|
2,129
|
|
47.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
10
|
|
8
|
|
20.3
|
|
19
|
|
15
|
|
29.2
|
Interest expense, net
|
(223)
|
|
(214)
|
|
4.2
|
|
(432)
|
|
(457)
|
|
(5.3)
|
Other, net
|
11
|
|
11
|
|
-
|
|
(62)
|
|
9
|
|
nm
|
Total nonoperating expense, net
|
(202)
|
|
(195)
|
|
3.2
|
|
(475)
|
|
(433)
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
1,719
|
|
1,204
|
|
42.9
|
|
2,662
|
|
1,696
|
|
56.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
15
|
|
340
|
|
(95.6)
|
|
26
|
|
353
|
|
(92.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
1,704
|
|
$
864
|
|
97.4
|
|
$
2,636
|
|
$
1,343
|
|
96.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
2.47
|
|
$
1.20
|
|
|
|
$
3.81
|
|
$
1.86
|
|
|
Diluted
|
$
2.41
|
|
$
1.17
|
|
|
|
$
3.70
|
|
$
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
688,727
|
|
720,600
|
|
|
|
692,571
|
|
722,286
|
|
|
Diluted
|
707,611
|
|
734,767
|
|
|
|
712,270
|
|
738,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent
change may not recalculate due to rounding.
|
American Airlines
Group Inc.
|
Consolidated
Operating Statistics
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
June 30,
|
|
|
|
|
6 Months Ended
June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
51,632
|
|
51,407
|
|
0.4
|
%
|
|
96,481
|
|
97,234
|
|
(0.8)
|
%
|
Available seat miles
(ASM) (millions)
|
|
61,920
|
|
60,999
|
|
1.5
|
%
|
|
117,773
|
|
117,830
|
|
-
|
%
|
Passenger load factor
(percent)
|
|
83.4
|
|
84.3
|
|
(0.9)
|
pts
|
|
81.9
|
|
82.5
|
|
(0.6)
|
pts
|
Yield
(cents)
|
|
14.83
|
|
15.98
|
|
(7.2)
|
%
|
|
15.18
|
|
15.91
|
|
(4.6)
|
%
|
Passenger revenue per
ASM (cents)
|
|
12.36
|
|
13.46
|
|
(8.2)
|
%
|
|
12.43
|
|
13.13
|
|
(5.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
37,823
|
|
37,910
|
|
(0.2)
|
%
|
|
71,774
|
|
72,754
|
|
(1.3)
|
%
|
Departures
(thousands)
|
|
285
|
|
292
|
|
(2.2)
|
%
|
|
555
|
|
571
|
|
(2.9)
|
%
|
Aircraft at end of
period
|
|
963
|
|
984
|
|
(2.1)
|
%
|
|
963
|
|
984
|
|
(2.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands)
|
|
903
|
|
901
|
|
0.2
|
%
|
|
1,736
|
|
1,754
|
|
(1.1)
|
%
|
Average stage length
(miles)
|
|
1,236
|
|
1,215
|
|
1.8
|
%
|
|
1,216
|
|
1,202
|
|
1.2
|
%
|
Fuel consumption
(gallons in millions)
|
|
936
|
|
937
|
|
(0.1)
|
%
|
|
1,781
|
|
1,811
|
|
(1.6)
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
1.90
|
|
3.02
|
|
(37.2)
|
%
|
|
1.86
|
|
3.06
|
|
(39.1)
|
%
|
Full-time equivalent
employees at end of period
|
|
100,700
|
|
94,100
|
|
7.0
|
%
|
|
100,700
|
|
94,100
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
11.87
|
|
13.61
|
|
(12.8)
|
%
|
|
12.31
|
|
13.55
|
|
(9.2)
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
11.64
|
|
13.19
|
|
(11.8)
|
%
|
|
11.93
|
|
13.46
|
|
(11.3)
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
8.77
|
|
8.55
|
|
2.5
|
%
|
|
9.11
|
|
8.75
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
6,189
|
|
5,787
|
|
6.9
|
%
|
|
11,530
|
|
10,846
|
|
6.3
|
%
|
Available seat miles
(millions)
|
|
7,481
|
|
7,091
|
|
5.5
|
%
|
|
14,417
|
|
13,652
|
|
5.6
|
%
|
Passenger load factor
(percent)
|
|
82.7
|
|
81.6
|
|
1.1
|
pts
|
|
80.0
|
|
79.4
|
|
0.6
|
pts
|
Yield
(cents)
|
|
28.42
|
|
29.49
|
|
(3.6)
|
%
|
|
27.85
|
|
28.71
|
|
(3.0)
|
%
|
Passenger revenue per
ASM (cents)
|
|
23.51
|
|
24.07
|
|
(2.3)
|
%
|
|
22.27
|
|
22.81
|
|
(2.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
14,377
|
|
13,553
|
|
6.1
|
%
|
|
26,619
|
|
25,262
|
|
5.4
|
%
|
Aircraft at end of
period
|
|
578
|
|
557
|
|
3.8
|
%
|
|
578
|
|
557
|
|
3.8
|
%
|
Fuel consumption
(gallons in millions)
|
|
182
|
|
174
|
|
4.5
|
%
|
|
350
|
|
336
|
|
4.2
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
1.91
|
|
3.07
|
|
(37.6)
|
%
|
|
1.89
|
|
3.08
|
|
(38.8)
|
%
|
Full-time equivalent
employees at end of period (B)
|
|
19,700
|
|
18,300
|
|
7.7
|
%
|
|
19,700
|
|
18,300
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
20.82
|
|
23.37
|
|
(10.9)
|
%
|
|
20.94
|
|
23.82
|
|
(12.1)
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
20.69
|
|
23.35
|
|
(11.4)
|
%
|
|
20.82
|
|
23.78
|
|
(12.4)
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
16.02
|
|
15.80
|
|
1.4
|
%
|
|
16.24
|
|
16.19
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
57,821
|
|
57,194
|
|
1.1
|
%
|
|
108,011
|
|
108,080
|
|
(0.1)
|
%
|
Available seat miles
(millions)
|
|
69,401
|
|
68,090
|
|
1.9
|
%
|
|
132,190
|
|
131,482
|
|
0.5
|
%
|
Cargo ton miles
(millions)
|
|
594
|
|
595
|
|
(0.1)
|
%
|
|
1,148
|
|
1,155
|
|
(0.7)
|
%
|
Passenger load factor
(percent)
|
|
83.3
|
|
84.0
|
|
(0.7)
|
pts
|
|
81.7
|
|
82.2
|
|
(0.5)
|
pts
|
Yield
(cents)
|
|
16.28
|
|
17.34
|
|
(6.1)
|
%
|
|
16.53
|
|
17.20
|
|
(3.9)
|
%
|
Passenger revenue per
ASM (cents)
|
|
13.57
|
|
14.57
|
|
(6.9)
|
%
|
|
13.51
|
|
14.13
|
|
(4.4)
|
%
|
Total revenue per ASM
(cents)
|
|
15.60
|
|
16.68
|
|
(6.4)
|
%
|
|
15.62
|
|
16.24
|
|
(3.8)
|
%
|
Cargo yield per ton
mile (cents)
|
|
32.62
|
|
37.16
|
|
(12.2)
|
%
|
|
33.83
|
|
37.02
|
|
(8.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
52,200
|
|
51,463
|
|
1.4
|
%
|
|
98,393
|
|
98,016
|
|
0.4
|
%
|
Aircraft at end of
period
|
|
1,541
|
|
1,541
|
|
-
|
%
|
|
1,541
|
|
1,541
|
|
-
|
%
|
Fuel consumption
(gallons in millions)
|
|
1,118
|
|
1,111
|
|
0.6
|
%
|
|
2,131
|
|
2,147
|
|
(0.7)
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
1.90
|
|
3.03
|
|
(37.3)
|
%
|
|
1.87
|
|
3.06
|
|
(39.1)
|
%
|
Full-time equivalent
employees at end of period (B)
|
|
120,400
|
|
112,400
|
|
7.1
|
%
|
|
120,400
|
|
112,400
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
12.83
|
|
14.62
|
|
(12.2)
|
%
|
|
13.25
|
|
14.62
|
|
(9.4)
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
12.61
|
|
14.25
|
|
(11.5)
|
%
|
|
12.90
|
|
14.53
|
|
(11.2)
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
9.55
|
|
9.31
|
|
2.6
|
%
|
|
9.89
|
|
9.53
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June 30,
|
|
|
|
|
6 Months Ended
June 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
33,170
|
|
32,717
|
|
1.4
|
%
|
|
62,755
|
|
62,893
|
|
(0.2)
|
%
|
Available seat miles
(ASM) (millions)
|
|
38,321
|
|
37,467
|
|
2.3
|
%
|
|
73,993
|
|
73,457
|
|
0.7
|
%
|
Passenger load factor
(percent)
|
|
86.6
|
|
87.3
|
|
(0.7)
|
pts
|
|
84.8
|
|
85.6
|
|
(0.8)
|
pts
|
Yield
(cents)
|
|
15.32
|
|
16.19
|
|
(5.3)
|
%
|
|
15.57
|
|
15.99
|
|
(2.6)
|
%
|
Passenger revenue per
ASM (cents)
|
|
13.26
|
|
14.13
|
|
(6.2)
|
%
|
|
13.21
|
|
13.69
|
|
(3.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
7,570
|
|
8,095
|
|
(6.5)
|
%
|
|
15,753
|
|
16,778
|
|
(6.1)
|
%
|
Available seat miles
(ASM) (millions)
|
|
9,895
|
|
10,663
|
|
(7.2)
|
%
|
|
20,488
|
|
22,020
|
|
(7.0)
|
%
|
Passenger load factor
(percent)
|
|
76.5
|
|
75.9
|
|
0.6
|
pts
|
|
76.9
|
|
76.2
|
|
0.7
|
pts
|
Yield
(cents)
|
|
14.42
|
|
16.79
|
|
(14.1)
|
%
|
|
15.48
|
|
17.32
|
|
(10.6)
|
%
|
Passenger revenue per
ASM (cents)
|
|
11.04
|
|
12.75
|
|
(13.4)
|
%
|
|
11.90
|
|
13.20
|
|
(9.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
8,221
|
|
8,604
|
|
(4.5)
|
%
|
|
12,993
|
|
13,868
|
|
(6.3)
|
%
|
Available seat miles
(ASM) (millions)
|
|
10,553
|
|
10,506
|
|
0.5
|
%
|
|
17,321
|
|
17,912
|
|
(3.3)
|
%
|
Passenger load factor
(percent)
|
|
77.9
|
|
81.9
|
|
(4.0)
|
pts
|
|
75.0
|
|
77.4
|
|
(2.4)
|
pts
|
Yield
(cents)
|
|
14.43
|
|
15.13
|
|
(4.6)
|
%
|
|
14.45
|
|
14.71
|
|
(1.8)
|
%
|
Passenger revenue per
ASM (cents)
|
|
11.24
|
|
12.39
|
|
(9.3)
|
%
|
|
10.84
|
|
11.39
|
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
2,671
|
|
1,991
|
|
34.1
|
%
|
|
4,980
|
|
3,696
|
|
34.7
|
%
|
Available seat miles
(ASM) (millions)
|
|
3,151
|
|
2,363
|
|
33.4
|
%
|
|
5,971
|
|
4,442
|
|
34.4
|
%
|
Passenger load factor
(percent)
|
|
84.8
|
|
84.3
|
|
0.5
|
pts
|
|
83.4
|
|
83.2
|
|
0.2
|
pts
|
Yield
(cents)
|
|
11.04
|
|
12.83
|
|
(14.0)
|
%
|
|
11.14
|
|
12.60
|
|
(11.6)
|
%
|
Passenger revenue per
ASM (cents)
|
|
9.35
|
|
10.81
|
|
(13.5)
|
%
|
|
9.29
|
|
10.48
|
|
(11.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
18,462
|
|
18,690
|
|
(1.2)
|
%
|
|
33,726
|
|
34,342
|
|
(1.8)
|
%
|
Available seat miles
(ASM) (millions)
|
|
23,599
|
|
23,532
|
|
0.3
|
%
|
|
43,780
|
|
44,374
|
|
(1.3)
|
%
|
Passenger load factor
(percent)
|
|
78.2
|
|
79.4
|
|
(1.2)
|
pts
|
|
77.0
|
|
77.4
|
|
(0.4)
|
pts
|
Yield
(cents)
|
|
13.94
|
|
15.61
|
|
(10.7)
|
%
|
|
14.44
|
|
15.76
|
|
(8.4)
|
%
|
Passenger revenue per
ASM (cents)
|
|
10.90
|
|
12.40
|
|
(12.0)
|
%
|
|
11.12
|
|
12.20
|
|
(8.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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American Airlines
Group Inc.
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3 Months Ended
June 30,
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Percent
Change
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6 Months Ended
June 30,
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Percent
Change
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2015
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2014
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2015
|
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2014
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Reconciliation of
Income Before Income Taxes Excluding
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(In millions, except
per share amounts)
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(In millions, except
per share amounts)
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Special
Items
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Income before income
taxes as reported
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$
1,719
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$
1,204
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$
2,662
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$
1,696
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Special
items:
|
|
|
|
|
|
|
|
|
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Special
items, net (1)
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144
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251
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|
447
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114
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Regional
operating special items, net (2)
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10
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2
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18
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6
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Nonoperating special items, net (3)
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(11)
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2
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(19)
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50
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Income before income
taxes as adjusted for special items
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$
1,862
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$
1,459
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28%
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$
3,108
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$
1,866
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67%
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3 Months Ended
June 30,
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6 Months Ended
June 30,
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|
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Calculation of
Pre-Tax Margin Excluding Special Items
|
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2015
|
|
2014
|
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2015
|
|
2014
|
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Income before income
taxes as adjusted for special items
|
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$
1,862
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$
1,459
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$
3,108
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$
1,866
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Total operating
revenues
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$
10,827
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$
11,355
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$
20,654
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$
21,351
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Pre-tax margin
excluding special items
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17.2%
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12.8%
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15.0%
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8.7%
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3 Months Ended
June 30,
|
Percent
Change
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6 Months Ended
June 30,
|
Percent
Change
|
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Reconciliation of
Net Income Excluding Special Items
|
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2015
|
|
2014
|
|
2015
|
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2014
|
|
|
|
|
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|
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Net income as
reported
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$
1,704
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$
864
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$
2,636
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$
1,343
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Special
items:
|
|
|
|
|
|
|
|
|
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Special
items, net (1)
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144
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|
251
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|
447
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114
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Regional
operating special items, net (2)
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10
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2
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18
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6
|
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Nonoperating special items, net (3)
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(11)
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2
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(19)
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50
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Non-cash
income tax provision (4)
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7
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337
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16
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345
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Net income as
adjusted for special items
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$
1,854
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$
1,456
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27%
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$
3,098
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$
1,858
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67%
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3 Months Ended
June 30,
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6 Months Ended
June 30,
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Reconciliation of
Basic and Diluted Earnings Per Share As
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2015
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2014
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2015
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2014
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Adjusted for
Special Items
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Net income as
adjusted for special items
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$
1,854
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$
1,456
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$
3,098
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$
1,858
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Shares used for
computation (in thousands):
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Basic
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688,727
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720,600
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692,571
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722,286
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Diluted
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707,611
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734,767
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712,270
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738,051
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Earnings per share as
adjusted for special items:
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Basic
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$
2.69
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$
2.02
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$
4.47
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$
2.57
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Diluted
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$
2.62
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$
1.98
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$
4.35
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$
2.52
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3 Months Ended
June 30,
|
Percent
Change
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6 Months Ended
June 30,
|
Percent
Change
|
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Reconciliation of
Operating Income Excluding Special Items
|
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2015
|
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2014
|
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2015
|
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2014
|
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Operating income as
reported
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$
1,921
|
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$
1,399
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$
3,137
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$
2,129
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Special
items:
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|
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|
|
|
|
|
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Special
items, net (1)
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144
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251
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447
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114
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Regional
operating special items, net (2)
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10
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2
|
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18
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6
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Operating income as
adjusted for special items
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$
2,075
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$
1,652
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26%
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$
3,602
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$
2,249
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60%
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3 Months Ended
June 30,
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6 Months Ended
June 30,
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|
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Reconciliation of
Operating Cost per ASM Excluding Special Items and Fuel - Mainline only
|
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2015
|
|
2014
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2015
|
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2014
|
|
|
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(in
millions)
|
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(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total operating
expenses
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$
8,906
|
|
$
9,956
|
|
$
17,517
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$
19,222
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|
Less regional
expenses:
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|
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Fuel
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(349)
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(535)
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(660)
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(1,035)
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Other
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(1,208)
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(1,122)
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(2,359)
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(2,216)
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Total mainline
operating expenses
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|
7,349
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|
8,299
|
|
14,498
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|
15,971
|
|
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|
|
|
|
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|
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Special
items, net (1)
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|
(144)
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|
(251)
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|
(447)
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(114)
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Mainline operating
expenses, excluding special items
|
|
7,205
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|
8,048
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|
14,051
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|
15,857
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|
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|
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Aircraft
fuel and related taxes
|
|
(1,774)
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|
(2,830)
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|
(3,318)
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|
(5,541)
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Mainline operating
expenses, excluding special items and fuel
|
|
$
5,431
|
|
$
5,218
|
|
$
10,733
|
|
$
10,316
|
|
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|
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|
|
|
|
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(in cents)
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(in cents)
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|
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|
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Mainline operating
expenses per ASM
|
|
11.87
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|
13.61
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|
12.31
|
|
13.55
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|
|
|
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|
|
|
|
|
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|
|
Special
items, net per ASM (1)
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|
(0.23)
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|
(0.41)
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|
(0.38)
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|
(0.10)
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|
|
Mainline operating
expenses per ASM, excluding special items
|
|
11.64
|
|
13.19
|
|
11.93
|
|
13.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
(2.86)
|
|
(4.64)
|
|
(2.82)
|
|
(4.70)
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|
|
Mainline operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
|
|
|
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and fuel
|
|
8.77
|
|
8.55
|
|
9.11
|
|
8.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
June 30,
|
|
6 Months Ended
June 30,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special Items and Fuel - Regional only
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses
|
|
$
1,557
|
|
$
1,657
|
|
$
3,019
|
|
$
3,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net (2)
|
|
(10)
|
|
(2)
|
|
(18)
|
|
(6)
|
|
|
Regional operating
expenses, excluding special items
|
|
1,547
|
|
1,655
|
|
3,001
|
|
3,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes
|
|
(349)
|
|
(535)
|
|
(660)
|
|
(1,035)
|
|
|
Regional operating
expenses, excluding special items and fuel
|
|
$
1,198
|
|
$
1,120
|
|
$
2,341
|
|
$
2,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM
|
|
20.82
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|
23.37
|
|
20.94
|
|
23.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM (2)
|
|
(0.13)
|
|
(0.02)
|
|
(0.12)
|
|
(0.04)
|
|
|
Regional operating
expenses per ASM, excluding special items
|
|
20.69
|
|
23.35
|
|
20.82
|
|
23.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
(4.66)
|
|
(7.55)
|
|
(4.58)
|
|
(7.58)
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel
|
|
16.02
|
|
15.80
|
|
16.24
|
|
16.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
June 30,
|
|
6 Months Ended
June 30,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding
Special Items and Fuel
- Total Mainline and Regional
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
$
8,906
|
|
$
9,956
|
|
$
17,517
|
|
$
19,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
(144)
|
|
(251)
|
|
(447)
|
|
(114)
|
|
|
Regional
operating special items, net (2)
|
|
(10)
|
|
(2)
|
|
(18)
|
|
(6)
|
|
|
Total operating
expenses, excluding special items
|
|
8,752
|
|
9,703
|
|
17,052
|
|
19,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel:
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
(1,774)
|
|
(2,830)
|
|
(3,318)
|
|
(5,541)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
(349)
|
|
(535)
|
|
(660)
|
|
(1,035)
|
|
|
Total operating
expenses, excluding special items and fuel
|
|
$
6,629
|
|
$
6,338
|
|
$
13,074
|
|
$
12,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM
|
|
12.83
|
|
14.62
|
|
13.25
|
|
14.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM:
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1)
|
|
(0.21)
|
|
(0.37)
|
|
(0.34)
|
|
(0.09)
|
|
|
Regional
operating special items, net (2)
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
12.61
|
|
14.25
|
|
12.90
|
|
14.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per
ASM:
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
(2.56)
|
|
(4.16)
|
|
(2.51)
|
|
(4.21)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
(0.50)
|
|
(0.79)
|
|
(0.50)
|
|
(0.79)
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
|
|
|
|
and fuel
|
|
9.55
|
|
9.31
|
|
9.89
|
|
9.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The 2015 second
quarter mainline operating special items totaled a net charge of
$144 million, which principally included $221 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. These charges were offset in part by a net
$68 million credit for bankruptcy related items primarily
consisting of fair value adjustments for bankruptcy settlement
obligations. The 2015 six month period mainline operating special
items totaled a net charge of $447 million, which principally
included $437 million of merger integration expenses as described
above and a net $99 million charge related to the Company's new
pilot joint collective bargaining agreement. These charges were
offset in part by a net $73 million credit for bankruptcy related
items primarily consisting of fair value adjustments for bankruptcy
settlement obligations.
The 2014 second quarter mainline operating special items totaled a
net charge of $251 million, which principally included $163 million
of merger integration expenses related to information technology,
professional fees, severance, share-based compensation, re-branding
of aircraft and airport facilities, relocation and training as well
as a net $38 million charge for bankruptcy related items primarily
consisting of fair value adjustments for bankruptcy settlement
obligations and $37 million in charges related to the buyout of
leases associated with certain aircraft. The 2014 six month period
mainline operating special items totaled a net charge of $114
million, which principally included $365 million of merger
integration expenses, $40 million in charges primarily related to
the buyout of leases associated with certain aircraft and a net $5
million charge for bankruptcy related items, all as described
above. These charges were offset in part by a $309 million gain on
the sale of Slots at Ronald Reagan Washington National
Airport.
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The 2015 and 2014
second quarter and six month period regional operating special
items principally related to merger integration
expenses.
|
|
|
|
|
|
|
|
|
|
|
(3)
|
The 2015 second
quarter nonoperating special items totaled a net credit of $11
million and primarily included a $22 million gain associated with
the sale of an investment, offset in part by $11 million in charges
principally related to non-cash write offs of unamortized debt
discount and debt issuance costs associated with refinancing the
Company's secured term loan facilities. The 2015 six month period
nonoperating special items totaled a net credit of $19 million and
principally included the $22 million gain associated with the sale
of an investment as described above and a $17 million early debt
extinguishment gain associated with the repayment of American's
AAdvantage loan with Citibank. These special credits were offset in
part by $20 million in charges principally related to non-cash
write offs of unamortized debt discount and debt issuance costs
associated with the debt refinancing as described above and the
prepayment of certain aircraft financings.
The 2014 second quarter and six month period nonoperating special
items were primarily due to non-cash interest accretion of $2
million and $33 million, respectively, on bankruptcy settlement
obligations.
|
|
|
|
|
|
|
|
|
|
|
(4)
|
The 2015 second
quarter and six month period tax special items were the result of a
non-cash deferred income tax provision related to certain
indefinite-lived intangible assets.
During the 2014 second quarter, the Company sold its portfolio of
fuel hedging contracts that were scheduled to settle on or after
June 30, 2014. In connection with this sale, the Company recorded a
special non-cash tax provision of $330 million in the second
quarter of 2014 that reversed the non-cash tax provision which was
recorded in other comprehensive income (OCI), a subset of
stockholders' equity, principally in 2009. This provision
represents the tax effect associated with gains recorded in OCI
principally in 2009 due to a net increase in the fair value of the
Company's fuel hedging contracts. In accordance with Generally
Accepted Accounting Principles, the Company retained the $330
million tax provision in OCI until the last contract was settled or
terminated. In addition, the Company recorded a special $7 million
non-cash deferred income tax provision related to certain
indefinite-lived intangible assets in the 2014 second quarter. The
2014 six month period included the $330 million non-cash tax
provision related to the settlement of fuel hedges discussed above
as well as a special $15 million non-cash deferred income tax
provision related to certain indefinite-lived intangible
assets.
|
American Airlines
Group Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
952
|
|
$
994
|
Short-term investments
|
7,967
|
|
6,309
|
Restricted cash and short-term investments
|
747
|
|
774
|
Accounts
receivable, net
|
1,892
|
|
1,771
|
Aircraft
fuel, spare parts and supplies, net
|
1,069
|
|
1,004
|
Prepaid
expenses and other
|
1,482
|
|
1,260
|
Total current
assets
|
14,109
|
|
12,112
|
|
|
|
|
Operating property
and equipment
|
|
|
|
Flight
equipment
|
30,829
|
|
28,213
|
Ground
property and equipment
|
6,132
|
|
5,900
|
Equipment purchase deposits
|
1,124
|
|
1,230
|
Total property and
equipment, at cost
|
38,085
|
|
35,343
|
Less
accumulated depreciation and amortization
|
(12,797)
|
|
(12,259)
|
Total property and
equipment, net
|
25,288
|
|
23,084
|
|
|
|
|
Other
assets
|
|
|
|
Goodwill
|
4,091
|
|
4,091
|
Intangibles, net
|
2,274
|
|
2,240
|
Other
assets
|
2,106
|
|
2,244
|
Total other
assets
|
8,471
|
|
8,575
|
|
|
|
|
Total
assets
|
$
47,868
|
|
$
43,771
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Current
maturities of long-term debt and capital leases
|
$
1,642
|
|
$
1,708
|
Accounts
payable
|
1,683
|
|
1,377
|
Accrued
salaries and wages
|
1,040
|
|
1,194
|
Air
traffic liability
|
5,664
|
|
4,252
|
Frequent
flyer liability
|
2,745
|
|
2,807
|
Other
accrued liabilities
|
2,271
|
|
2,097
|
Total current
liabilities
|
15,045
|
|
13,435
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
Long-term debt and capital leases, net of current
maturities
|
17,152
|
|
16,196
|
Pension
and postretirement benefits
|
7,477
|
|
7,562
|
Deferred
gains and credits, net
|
746
|
|
829
|
Bankruptcy settlement obligations
|
208
|
|
325
|
Other
liabilities
|
3,604
|
|
3,403
|
Total noncurrent
liabilities
|
29,187
|
|
28,315
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
7
|
|
7
|
Additional paid-in capital
|
14,319
|
|
15,135
|
Accumulated other comprehensive loss
|
(4,620)
|
|
(4,559)
|
Accumulated deficit
|
(6,070)
|
|
(8,562)
|
Total stockholders'
equity
|
3,636
|
|
2,021
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
47,868
|
|
$
43,771
|
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SOURCE American Airlines Group Inc.