American Airlines Group Inc. (NASDAQ:AAL) today reported its fourth
quarter and full year 2015 results.
- Record fourth quarter 2015 net profit excluding net
special credits was $1.3 billion, up 17 percent versus the previous
record set in the fourth quarter 2014
- Record full year 2015 net profit excluding net special
credits was $6.3 billion, up 50 percent versus the previous record
set in 2014
- Repurchased $1.1 billion, or 25.6 million shares, of
common stock during the fourth quarter. In 2015, the Company
repurchased 85.1 million shares for $3.6 billion
American Airlines Group reported a record fourth quarter GAAP
net profit of $3.3 billion, or $5.09 per diluted share, which
includes a $3.0 billion net special credit resulting from the
reversal of the Company’s tax valuation allowance. This compares to
a GAAP net profit of $597 million in the fourth quarter of 2014, or
$0.82 per diluted share.
For full year 2015, the Company reported a record GAAP net
profit of $7.6 billion, or $11.07 per diluted share, compared to a
GAAP net profit of $2.9 billion, or $3.93 per diluted share in
2014.
American Airlines Group’s fourth quarter 2015 net profit,
excluding net special credits, was a record $1.3 billion, or $2.00
per diluted share versus a fourth quarter 2014 net profit excluding
net special charges of $1.1 billion, or $1.52 per diluted share.
The Company’s fourth quarter 2015 pretax margin excluding net
special credits was a record 13.4 percent, up 2.8 percentage points
from the same period last year.
Excluding net special credits, the Company’s 2015 net profit was
a record $6.3 billion, or $9.12 per diluted share. This represents
a 50 percent improvement over the Company’s 2014 net profit
excluding special charges of $4.2 billion, or $5.70 per diluted
share. The Company’s 2015 pretax margin excluding net special
credits was a record 15.3 percent, up 5.5 percentage points versus
2014.
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 extremely pleased to report record quarterly and full
year earnings,” said Chairman and CEO Doug Parker. “The credit for
these results goes to our outstanding team members, who have
provided excellent customer service.
“American Airlines enters 2016 well-positioned for the future.
With the youngest aircraft fleet among our major competitors, more
than $2 billion of product investments underway, and the best
aviation professionals in the business, we are well on our way to
restoring American as the greatest airline in the world.”
Revenue and Cost Comparisons
Total revenue in the fourth quarter was $9.6 billion, a decrease
of 5.2 percent versus the fourth quarter 2014 on a 0.6 percent
increase in total available seat miles (ASMs). Consolidated
passenger revenue per ASM (PRASM) was 12.69 cents, down 6.0 percent
versus the fourth quarter 2014. Fourth quarter consolidated
passenger yield was 15.34 cents, down 8.9 percent versus the prior
year.
For the full year 2015, total revenue was $41.0 billion, down
3.9 percent versus 2014 on a 1.2 percent increase in total ASMs.
Driven by a 6.5 percent decrease in consolidated passenger yield,
2015 consolidated PRASM was down 5.4 percent to 13.21 cents versus
the prior year.
Total operating expenses in the fourth quarter were $8.6
billion, a decrease of 7.9 percent compared to the fourth quarter
2014, due primarily to a 40.8 percent decrease in consolidated fuel
expense. Fourth quarter mainline cost per available seat mile
(CASM) was 12.24 cents, down 8.1 percent on a 0.5 percent increase
in mainline ASMs versus the fourth quarter 2014. Excluding net
special charges and fuel, mainline CASM was 9.22 cents, up 6.3
percent compared to the fourth quarter 2014. Regional CASM
excluding net special charges and fuel was 16.10 cents, up 1.5
percent on a 1.4 percent increase in regional ASMs versus the
fourth quarter 2014.
Full year 2015 total operating expenses were $34.8 billion, down
9.4 percent versus 2014. Excluding net special charges and fuel,
mainline CASM was 8.99 cents, up 4.2 percent versus 2014. Regional
CASM excluding net special charges and fuel increased 0.9 percent
to 16.09 cents versus 2014.
Cash and Investments
As of Dec. 31, 2015, the Company had $6.9 billion in total cash
and short term investments, of which $695 million was restricted
(the foregoing amounts are after giving effect to the write-off of
Venezuelan bolivars described in the special items section below).
The Company also had an undrawn revolving credit facility of $2.4
billion.
As part of an extensive and unprecedented fleet renewal program,
the Company invested more than $5.3 billion in new aircraft in
2015, providing it with the youngest and most modern fleet of the
U.S. network airlines. In 2015, the Company took delivery of 75 new
mainline aircraft, added 52 regional aircraft, and removed 112
mainline and 31 regional aircraft. In 2016, the Company expects to
take delivery of 55 new mainline aircraft, add 49 regional aircraft
and remove 92 mainline and 29 regional aircraft.
In the fourth quarter, the Company returned $1.2 billion to its
shareholders through the payment of $72 million in quarterly
dividends and the repurchase of $1.1 billion of common stock, or
25.6 million shares. When combined with the dividends and shares
repurchased during the first three quarters of 2015, the Company
returned $3.9 billion to its shareholders in 2015 and reduced its
shares outstanding by repurchasing 85.1 million shares for $3.6
billion. In addition, in 2015 the Company elected to pay
approximately $306 million to cover employee tax withholding
obligations on equity awards, further reducing the share count by
7.0 million.
The Company also declared a dividend of $0.10 per share to be
paid on Feb. 24, 2016, to shareholders of record as of Feb. 10,
2016.
2015 Notable Accomplishments
Integration Accomplishments
- Adopted a single reservations system with zero customer
disruption
- Reached ratified contracts with industry-leading pay rates for
pilots, flight attendants, and customer service and reservation
agents
- Received a single operating certificate from the Federal
Aviation Administration, meaning American is regulated as one
airline
- Merged American Airlines Vacations and US Airways
Vacations
- Merged frequent flyer programs by moving US Airways Dividend
Miles members into AAdvantage®
- Opened the new state-of-the-art Robert W. Baker Integrated
Operations Center in Fort Worth
- Announced plans to expand the airline’s Fort Worth campus
so that support staff and leadership team members work alongside
the airline’s training and integrated operations support teams
- Optimized the airline’s flight schedules at Chicago O’Hare
International Airport and Dallas Fort Worth International
Airport
- Expanded bag tracking technology to the whole airline, enabling
customers to track checked baggage in real time
- Brought the number of airports with co-located operations to
140, and consolidated all mainline operations at Dallas Fort Worth
International Airport into three terminals, gaining efficiencies in
gate use and line maintenance
Finance, Network and Marketing
Accomplishments
- Announced changes to the AAdvantage® program that become
effective throughout 2016. Award miles will be based on dollars
spent instead of distance flown
- The Company’s stock was added to the S&P 500 index
- Expanded the airline’s global footprint by adding 35 new
routes, including 6 domestic and 19 international. Notable new
routes include Dallas-Fort Worth to Beijing, Los Angeles to Sydney
and Los Angeles to Mexico City
- 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
- Recognized by Air Cargo News as the Cargo Airline of the Year
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
- Opened a new 25,000-square foot dedicated pharmaceutical cargo
cold storage facility in Philadelphia
- Introduced the Boeing 787 Dreamliner to the Company’s fleet. At
year end, the Company had received 13 of these aircraft out of its
order of 42
- Provided charter service for Pope Francis’ first official visit
to the U.S.
- Expanded the Company’s agreement with Alaska Airlines that
allows full access of American’s network to Alaska customers as
well as reciprocal airport club access
- 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
- Hosted Sky Ball XIII at the airline’s DFW hangar. This annual
fundraiser benefits the nation’s active, reserve and retired
military. Approximately 1,000 American Airlines employee volunteers
supported the 2015 event, which raised a record $2.2 million
- American received, for the 14th consecutive year, the highest
possible ranking by the Human Rights Campaign in the 2016 Corporate
Equality Index, a nationally recognized benchmark of America's top
workplaces for inclusion of LGBT employees
- American’s Be Pink campaign raised $1.8 million in cash and
frequent flyer mile donations for Susan G. Komen, which raises
money to fight breast cancer, and the American Cancer Society
- The Environmental Protection Agency announced American is now
ranked 43rd on their Fortune 500 list of the largest green power
users
- 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
- Awarded $565,000 in college scholarships to 210 dependents of
employees through the American Airlines Education Foundation,
including 40 for first-generation college attendees
- 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
- In 2015, American Airlines employees participated in more than
11,600 volunteer events in their communities, contributing more
than 77,000 hours of volunteer time in the communities where they
live and where American provides service. In addition, as part of
the Company’s Flights for 50 awards program, American employees
donated more than 6.4 million frequent flier miles to nonprofit
organizations in their communities
Special Items
In the fourth quarter, the Company recognized approximately $2.0
billion in net special credits, including:
- $450 million of operating special charges primarily related to
merger integration expenses
- $592 million nonoperating special charge related to a write-off
of the value of Venezuelan bolivars held by the Company
- $3.0 billion special non-cash benefit related to the reversal
of the Company’s tax valuation allowance
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 Feb. 29.
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 and American Eagle offer an average of nearly
6,700 flights per day to nearly 350 destinations in more than 50
countries. American has hubs in Charlotte, Chicago, Dallas/Fort
Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and
Washington, D.C. 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. Shares of
American Airlines Group Inc. trade on Nasdaq under the ticker
symbol AAL. In 2015, its stock joined 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, the expected change in
PRASM, the Company’s plans, objectives, estimates, expectations and
intentions, and other statements that are not historical facts.
These forward-looking statements are based on the Company’s current
objectives, beliefs and expectations, 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; actions that the Company may take in
connection with its integration with US Airways that may not be to
its advantage on a stand-alone basis; 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
September 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) 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
except 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 December 31, |
|
Percent |
|
12 Months Ended December 31, |
|
Percent |
|
|
|
2015 |
|
|
|
2014 |
|
|
Change |
|
|
2015 |
|
|
|
2014 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
passenger |
$ |
6,739 |
|
|
$ |
7,238 |
|
|
|
(6.9 |
) |
|
$ |
29,037 |
|
|
$ |
30,802 |
|
|
|
(5.7 |
) |
|
Regional
passenger |
|
1,566 |
|
|
|
1,544 |
|
|
|
1.4 |
|
|
|
6,475 |
|
|
|
6,322 |
|
|
|
2.4 |
|
|
Cargo |
|
192 |
|
|
|
232 |
|
|
|
(17.3 |
) |
|
|
760 |
|
|
|
875 |
|
|
|
(13.1 |
) |
|
Other |
|
1,133 |
|
|
|
1,146 |
|
|
|
(1.2 |
) |
|
|
4,718 |
|
|
|
4,651 |
|
|
|
1.4 |
|
|
Total operating
revenues |
|
9,630 |
|
|
|
10,160 |
|
|
|
(5.2 |
) |
|
|
40,990 |
|
|
|
42,650 |
|
|
|
(3.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
1,314 |
|
|
|
2,222 |
|
|
|
(40.9 |
) |
|
|
6,226 |
|
|
|
10,592 |
|
|
|
(41.2 |
) |
|
Salaries, wages
and benefits |
|
2,383 |
|
|
|
2,089 |
|
|
|
14.1 |
|
|
|
9,524 |
|
|
|
8,508 |
|
|
|
11.9 |
|
|
Regional
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
260 |
|
|
|
437 |
|
|
|
(40.6 |
) |
|
|
1,230 |
|
|
|
2,009 |
|
|
|
(38.8 |
) |
|
Other |
|
1,186 |
|
|
|
1,161 |
|
|
|
2.2 |
|
|
|
4,753 |
|
|
|
4,507 |
|
|
|
5.4 |
|
|
Maintenance,
materials and repairs |
|
437 |
|
|
|
523 |
|
|
|
(16.3 |
) |
|
|
1,889 |
|
|
|
2,051 |
|
|
|
(7.9 |
) |
|
Other rent and
landing fees |
|
441 |
|
|
|
430 |
|
|
|
2.5 |
|
|
|
1,731 |
|
|
|
1,727 |
|
|
|
0.2 |
|
|
Aircraft
rent |
|
309 |
|
|
|
312 |
|
|
|
(1.3 |
) |
|
|
1,250 |
|
|
|
1,250 |
|
|
|
- |
|
|
Selling
expenses |
|
342 |
|
|
|
348 |
|
|
|
(1.7 |
) |
|
|
1,394 |
|
|
|
1,544 |
|
|
|
(9.8 |
) |
|
Depreciation and
amortization |
|
352 |
|
|
|
334 |
|
|
|
5.1 |
|
|
|
1,364 |
|
|
|
1,295 |
|
|
|
5.4 |
|
|
Special items,
net |
|
441 |
|
|
|
466 |
|
|
|
(5.3 |
) |
|
|
1,051 |
|
|
|
800 |
|
|
|
31.3 |
|
|
Other |
|
1,097 |
|
|
|
978 |
|
|
|
12.1 |
|
|
|
4,374 |
|
|
|
4,118 |
|
|
|
6.2 |
|
|
Total operating
expenses |
|
8,562 |
|
|
|
9,300 |
|
|
|
(7.9 |
) |
|
|
34,786 |
|
|
|
38,401 |
|
|
|
(9.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
1,068 |
|
|
|
860 |
|
|
|
24.2 |
|
|
|
6,204 |
|
|
|
4,249 |
|
|
|
46.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
10 |
|
|
|
9 |
|
|
|
15.3 |
|
|
|
39 |
|
|
|
31 |
|
|
|
26.0 |
|
|
Interest
expense, net |
|
(229 |
) |
|
|
(220 |
) |
|
|
3.7 |
|
|
|
(880 |
) |
|
|
(887 |
) |
|
|
(0.8 |
) |
|
Other, net |
|
(605 |
) |
|
|
(82 |
) |
|
|
nm |
|
|
|
(747 |
) |
|
|
(181 |
) |
|
|
nm |
|
|
Total
nonoperating expense, net |
|
(824 |
) |
|
|
(293 |
) |
|
|
nm |
|
|
|
(1,588 |
) |
|
|
(1,037 |
) |
|
|
53.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
244 |
|
|
|
567 |
|
|
|
(56.7 |
) |
|
|
4,616 |
|
|
|
3,212 |
|
|
|
43.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit) |
|
(3,037 |
) |
|
|
(30 |
) |
|
|
nm |
|
|
|
(2,994 |
) |
|
|
330 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,281 |
|
|
$ |
597 |
|
|
|
nm |
|
|
$ |
7,610 |
|
|
$ |
2,882 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
5.24 |
|
|
$ |
0.84 |
|
|
|
|
$ |
11.39 |
|
|
$ |
4.02 |
|
|
|
|
Diluted |
$ |
5.09 |
|
|
$ |
0.82 |
|
|
|
|
$ |
11.07 |
|
|
$ |
3.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
626,559 |
|
|
|
706,185 |
|
|
|
|
|
668,393 |
|
|
|
717,456 |
|
|
|
|
Diluted |
|
644,140 |
|
|
|
724,767 |
|
|
|
|
|
687,355 |
|
|
|
734,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent change may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines Group Inc. |
Consolidated Operating
Statistics |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended December 31, |
|
|
|
|
12 Months Ended December 31, |
|
|
|
|
|
2015 |
|
2014 |
|
Change |
|
|
2015 |
|
2014 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
48,319 |
|
46,522 |
|
|
3.9 |
|
% |
|
199,467 |
|
195,651 |
|
|
2.0 |
|
% |
Available seat miles
(ASM) (millions) |
|
58,143 |
|
57,840 |
|
|
0.5 |
|
% |
|
239,375 |
|
237,522 |
|
|
0.8 |
|
% |
Passenger load factor
(percent) |
|
83.1 |
|
80.4 |
|
|
2.7 |
|
pts |
|
83.3 |
|
82.4 |
|
|
0.9 |
|
pts |
Yield (cents) |
|
13.95 |
|
15.56 |
|
|
(10.4 |
) |
% |
|
14.56 |
|
15.74 |
|
|
(7.5 |
) |
% |
Passenger revenue per
ASM (cents) |
|
11.59 |
|
12.51 |
|
|
(7.4 |
) |
% |
|
12.13 |
|
12.97 |
|
|
(6.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
36,131 |
|
35,305 |
|
|
2.3 |
|
% |
|
146,814 |
|
145,574 |
|
|
0.9 |
|
% |
Departures
(thousands) |
|
274 |
|
282 |
|
|
(2.9 |
) |
% |
|
1,114 |
|
1,144 |
|
|
(2.6 |
) |
% |
Aircraft at end of
period |
|
946 |
|
983 |
|
|
(3.8 |
) |
% |
|
946 |
|
983 |
|
|
(3.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands) |
|
850 |
|
858 |
|
|
(0.9 |
) |
% |
|
3,494 |
|
3,514 |
|
|
(0.6 |
) |
% |
Average stage length
(miles) |
|
1,209 |
|
1,187 |
|
|
1.9 |
|
% |
|
1,226 |
|
1,205 |
|
|
1.7 |
|
% |
Fuel consumption
(gallons in millions) |
|
875 |
|
881 |
|
|
(0.7 |
) |
% |
|
3,611 |
|
3,644 |
|
|
(0.9 |
) |
% |
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.50 |
|
2.52 |
|
|
(40.5 |
) |
% |
|
1.72 |
|
2.91 |
|
|
(40.7 |
) |
% |
Full-time equivalent
employees at end of period |
|
98,900 |
|
94,400 |
|
|
4.8 |
|
% |
|
98,900 |
|
94,400 |
|
|
4.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
12.24 |
|
13.32 |
|
|
(8.1 |
) |
% |
|
12.03 |
|
13.42 |
|
|
(10.4 |
) |
% |
Operating cost per ASM
excluding special items (cents) |
|
11.48 |
|
12.51 |
|
|
(8.3 |
) |
% |
|
11.59 |
|
13.09 |
|
|
(11.4 |
) |
% |
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.22 |
|
8.67 |
|
|
6.3 |
|
% |
|
8.99 |
|
8.63 |
|
|
4.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
5,814 |
|
5,618 |
|
|
3.5 |
|
% |
|
23,543 |
|
22,219 |
|
|
6.0 |
|
% |
Available seat miles
(millions) |
|
7,310 |
|
7,213 |
|
|
1.4 |
|
% |
|
29,361 |
|
28,135 |
|
|
4.4 |
|
% |
Passenger load factor
(percent) |
|
79.5 |
|
77.9 |
|
|
1.6 |
|
pts |
|
80.2 |
|
79.0 |
|
|
1.2 |
|
pts |
Yield (cents) |
|
26.93 |
|
27.48 |
|
|
(2.0 |
) |
% |
|
27.50 |
|
28.46 |
|
|
(3.3 |
) |
% |
Passenger revenue per
ASM (cents) |
|
21.42 |
|
21.40 |
|
|
0.1 |
|
% |
|
22.05 |
|
22.47 |
|
|
(1.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
13,402 |
|
13,021 |
|
|
2.9 |
|
% |
|
54,435 |
|
51,766 |
|
|
5.2 |
|
% |
Aircraft at end of
period |
|
587 |
|
566 |
|
|
3.7 |
|
% |
|
587 |
|
566 |
|
|
3.7 |
|
% |
Fuel consumption
(gallons in millions) |
|
177 |
|
174 |
|
|
1.6 |
|
% |
|
712 |
|
688 |
|
|
3.6 |
|
% |
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.47 |
|
2.51 |
|
|
(41.5 |
) |
% |
|
1.73 |
|
2.92 |
|
|
(40.9 |
) |
% |
Full-time equivalent
employees at end of period (B) |
|
19,600 |
|
18,900 |
|
|
3.7 |
|
% |
|
19,600 |
|
18,900 |
|
|
3.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
19.78 |
|
22.15 |
|
|
(10.7 |
) |
% |
|
20.38 |
|
23.16 |
|
|
(12.0 |
) |
% |
Operating cost per ASM
excluding special items (cents) |
|
19.65 |
|
21.93 |
|
|
(10.4 |
) |
% |
|
20.28 |
|
23.08 |
|
|
(12.2 |
) |
% |
Operating cost per ASM
excluding special items and fuel (cents) |
|
16.10 |
|
15.87 |
|
|
1.5 |
|
% |
|
16.09 |
|
15.94 |
|
|
0.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
54,133 |
|
52,140 |
|
|
3.8 |
|
% |
|
223,010 |
|
217,870 |
|
|
2.4 |
|
% |
Available seat miles
(millions) |
|
65,453 |
|
65,053 |
|
|
0.6 |
|
% |
|
268,736 |
|
265,657 |
|
|
1.2 |
|
% |
Cargo ton miles
(millions) |
|
598 |
|
611 |
|
|
(2.1 |
) |
% |
|
2,314 |
|
2,333 |
|
|
(0.8 |
) |
% |
Passenger load factor
(percent) |
|
82.7 |
|
80.1 |
|
|
2.6 |
|
pts |
|
83.0 |
|
82.0 |
|
|
1.0 |
|
pts |
Yield (cents) |
|
15.34 |
|
16.84 |
|
|
(8.9 |
) |
% |
|
15.92 |
|
17.04 |
|
|
(6.5 |
) |
% |
Passenger revenue per
ASM (cents) |
|
12.69 |
|
13.50 |
|
|
(6.0 |
) |
% |
|
13.21 |
|
13.97 |
|
|
(5.4 |
) |
% |
Total revenue per ASM
(cents) |
|
14.71 |
|
15.62 |
|
|
(5.8 |
) |
% |
|
15.25 |
|
16.05 |
|
|
(5.0 |
) |
% |
Cargo yield per ton
mile (cents) |
|
32.07 |
|
37.95 |
|
|
(15.5 |
) |
% |
|
32.84 |
|
37.50 |
|
|
(12.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
49,533 |
|
48,326 |
|
|
2.5 |
|
% |
|
201,249 |
|
197,340 |
|
|
2.0 |
|
% |
Aircraft at end of
period |
|
1,533 |
|
1,549 |
|
|
(1.0 |
) |
% |
|
1,533 |
|
1,549 |
|
|
(1.0 |
) |
% |
Fuel consumption
(gallons in millions) |
|
1,052 |
|
1,055 |
|
|
(0.3 |
) |
% |
|
4,323 |
|
4,332 |
|
|
(0.2 |
) |
% |
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.50 |
|
2.52 |
|
|
(40.6 |
) |
% |
|
1.72 |
|
2.91 |
|
|
(40.7 |
) |
% |
Full-time equivalent
employees at end of period (B) |
|
118,500 |
|
113,300 |
|
|
4.6 |
|
% |
|
118,500 |
|
113,300 |
|
|
4.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
13.08 |
|
14.30 |
|
|
(8.5 |
) |
% |
|
12.94 |
|
14.45 |
|
|
(10.5 |
) |
% |
Operating cost per ASM
excluding special items (cents) |
|
12.39 |
|
13.56 |
|
|
(8.6 |
) |
% |
|
12.54 |
|
14.14 |
|
|
(11.3 |
) |
% |
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.99 |
|
9.47 |
|
|
5.5 |
|
% |
|
9.77 |
|
9.40 |
|
|
3.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 December 31, |
|
|
|
|
12 Months Ended December 31, |
|
|
|
|
|
|
|
2015 |
|
2014 |
|
Change |
|
|
2015 |
|
2014 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
31,576 |
|
30,591 |
|
|
3.2 |
|
% |
|
128,590 |
|
125,916 |
|
|
2.1 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
36,709 |
|
37,008 |
|
|
(0.8 |
) |
% |
|
149,584 |
|
148,083 |
|
|
1.0 |
|
% |
|
Passenger
load factor (percent) |
|
86.0 |
|
82.7 |
|
|
3.3 |
|
pts |
|
86.0 |
|
85.0 |
|
|
1.0 |
|
pts |
|
Yield
(cents) |
|
14.58 |
|
15.88 |
|
|
(8.2 |
) |
% |
|
14.96 |
|
15.89 |
|
|
(5.8 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
12.54 |
|
13.12 |
|
|
(4.5 |
) |
% |
|
12.86 |
|
13.51 |
|
|
(4.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
7,529 |
|
7,477 |
|
|
0.7 |
|
% |
|
31,201 |
|
32,093 |
|
|
(2.8 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
9,695 |
|
9,742 |
|
|
(0.5 |
) |
% |
|
39,726 |
|
41,581 |
|
|
(4.5 |
) |
% |
|
Passenger
load factor (percent) |
|
77.7 |
|
76.8 |
|
|
0.9 |
|
pts |
|
78.5 |
|
77.2 |
|
|
1.3 |
|
pts |
|
Yield
(cents) |
|
13.53 |
|
16.47 |
|
|
(17.8 |
) |
% |
|
14.54 |
|
16.76 |
|
|
(13.2 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
10.51 |
|
12.64 |
|
|
(16.9 |
) |
% |
|
11.42 |
|
12.94 |
|
|
(11.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
6,564 |
|
6,245 |
|
|
5.1 |
|
% |
|
29,218 |
|
29,306 |
|
|
(0.3 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
8,536 |
|
8,233 |
|
|
3.7 |
|
% |
|
37,611 |
|
37,573 |
|
|
0.1 |
|
% |
|
Passenger
load factor (percent) |
|
76.9 |
|
75.9 |
|
|
1.0 |
|
pts |
|
77.7 |
|
78.0 |
|
|
(0.3 |
) |
pts |
|
Yield
(cents) |
|
12.92 |
|
14.14 |
|
|
(8.7 |
) |
% |
|
14.11 |
|
14.89 |
|
|
(5.3 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
9.93 |
|
10.73 |
|
|
(7.4 |
) |
% |
|
10.96 |
|
11.61 |
|
|
(5.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
2,650 |
|
2,209 |
|
|
19.9 |
|
% |
|
10,458 |
|
8,335 |
|
|
25.5 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
3,203 |
|
2,858 |
|
|
12.1 |
|
% |
|
12,454 |
|
10,285 |
|
|
21.1 |
|
% |
|
Passenger
load factor (percent) |
|
82.7 |
|
77.3 |
|
|
5.4 |
|
pts |
|
84.0 |
|
81.0 |
|
|
3.0 |
|
pts |
|
Yield
(cents) |
|
10.19 |
|
12.09 |
|
|
(15.7 |
) |
% |
|
10.89 |
|
12.66 |
|
|
(14.0 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
8.43 |
|
9.34 |
|
|
(9.7 |
) |
% |
|
9.14 |
|
10.26 |
|
|
(10.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
16,743 |
|
15,931 |
|
|
5.1 |
|
% |
|
70,877 |
|
69,734 |
|
|
1.6 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
21,434 |
|
20,833 |
|
|
2.9 |
|
% |
|
89,791 |
|
89,439 |
|
|
0.4 |
|
% |
|
Passenger
load factor (percent) |
|
78.1 |
|
76.5 |
|
|
1.6 |
|
pts |
|
78.9 |
|
78.0 |
|
|
0.9 |
|
pts |
|
Yield
(cents) |
|
12.76 |
|
14.95 |
|
|
(14.6 |
) |
% |
|
13.82 |
|
15.48 |
|
|
(10.7 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
9.97 |
|
11.43 |
|
|
(12.8 |
) |
% |
|
10.91 |
|
12.07 |
|
|
(9.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Before Income Taxes
Excluding |
|
3 Months Ended December 31, |
Percent Change |
12 Months Ended December 31, |
Percent Change |
|
|
Special Items |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
(In millions, except per share amounts) |
|
(In millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes as reported |
|
$ |
244 |
|
|
$ |
567 |
|
|
$ |
4,616 |
|
|
$ |
3,212 |
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
441 |
|
|
|
466 |
|
|
|
1,051 |
|
|
|
800 |
|
|
|
|
Regional
operating special items, net (2) |
|
|
9 |
|
|
|
16 |
|
|
|
29 |
|
|
|
24 |
|
|
|
|
Nonoperating
special items, net (3) |
|
|
592 |
|
|
|
31 |
|
|
|
594 |
|
|
|
132 |
|
|
|
|
Income before income
taxes as adjusted for special items |
|
$ |
1,286 |
|
|
$ |
1,080 |
|
|
19 |
% |
$ |
6,290 |
|
|
$ |
4,168 |
|
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes as adjusted for special items |
|
$ |
1,286 |
|
|
$ |
1,080 |
|
|
$ |
6,290 |
|
|
$ |
4,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues |
|
$ |
9,630 |
|
|
$ |
10,160 |
|
|
$ |
40,990 |
|
|
$ |
42,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin
excluding special items |
|
|
13.4 |
% |
|
|
10.6 |
% |
|
|
15.3 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
3,281 |
|
|
$ |
597 |
|
|
$ |
7,610 |
|
|
$ |
2,882 |
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
441 |
|
|
|
466 |
|
|
|
1,051 |
|
|
|
800 |
|
|
|
|
Regional
operating special items, net (2) |
|
|
9 |
|
|
|
16 |
|
|
|
29 |
|
|
|
24 |
|
|
|
|
Nonoperating
special items, net (3) |
|
|
592 |
|
|
|
31 |
|
|
|
594 |
|
|
|
132 |
|
|
|
|
Non-cash income
tax provision (benefit) (4) |
|
|
(3,037 |
) |
|
|
(6 |
) |
|
|
(3,015 |
) |
|
|
346 |
|
|
|
|
Net income as adjusted
for special items |
|
$ |
1,286 |
|
|
$ |
1,104 |
|
|
17 |
% |
$ |
6,269 |
|
|
$ |
4,184 |
|
|
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings Per Share
As |
|
|
|
|
|
|
|
|
|
|
|
Adjusted for Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as adjusted
for special items |
|
$ |
1,286 |
|
|
$ |
1,104 |
|
|
$ |
6,269 |
|
|
$ |
4,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
626,559 |
|
|
|
706,185 |
|
|
|
668,393 |
|
|
|
717,456 |
|
|
|
|
Diluted |
|
|
644,140 |
|
|
|
724,767 |
|
|
|
687,355 |
|
|
|
734,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
adjusted for special items: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.05 |
|
|
$ |
1.56 |
|
|
$ |
9.38 |
|
|
$ |
5.83 |
|
|
|
|
Diluted |
|
$ |
2.00 |
|
|
$ |
1.52 |
|
|
$ |
9.12 |
|
|
$ |
5.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as reported |
|
$ |
1,068 |
|
|
$ |
860 |
|
|
$ |
6,204 |
|
|
$ |
4,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
441 |
|
|
|
466 |
|
|
|
1,051 |
|
|
|
800 |
|
|
|
|
Regional
operating special items, net (2) |
|
|
9 |
|
|
|
16 |
|
|
|
29 |
|
|
|
24 |
|
|
|
|
Operating income as
adjusted for special items |
|
$ |
1,518 |
|
|
$ |
1,342 |
|
|
13 |
% |
$ |
7,284 |
|
|
$ |
5,073 |
|
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended December 31, |
|
12 Months Ended December 31, |
|
|
|
Items and Fuel - Mainline only |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
$ |
8,562 |
|
|
$ |
9,300 |
|
|
$ |
34,786 |
|
|
$ |
38,401 |
|
|
|
|
Less regional
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
(260 |
) |
|
|
(437 |
) |
|
|
(1,230 |
) |
|
|
(2,009 |
) |
|
|
|
Other |
|
|
(1,186 |
) |
|
|
(1,161 |
) |
|
|
(4,753 |
) |
|
|
(4,507 |
) |
|
|
|
Total mainline
operating expenses |
|
|
7,116 |
|
|
|
7,702 |
|
|
|
28,803 |
|
|
|
31,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(441 |
) |
|
|
(466 |
) |
|
|
(1,051 |
) |
|
|
(800 |
) |
|
|
|
Mainline operating
expenses, excluding special items |
|
|
6,675 |
|
|
|
7,236 |
|
|
|
27,752 |
|
|
|
31,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
|
(1,314 |
) |
|
|
(2,222 |
) |
|
|
(6,226 |
) |
|
|
(10,592 |
) |
|
|
|
Mainline operating
expenses, excluding special items and fuel |
|
$ |
5,361 |
|
|
$ |
5,014 |
|
|
$ |
21,526 |
|
|
$ |
20,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM |
|
|
12.24 |
|
|
|
13.32 |
|
|
|
12.03 |
|
|
|
13.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net per ASM (1) |
|
|
(0.76 |
) |
|
|
(0.81 |
) |
|
|
(0.44 |
) |
|
|
(0.34 |
) |
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
11.48 |
|
|
|
12.51 |
|
|
|
11.59 |
|
|
|
13.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes per ASM |
|
|
(2.26 |
) |
|
|
(3.84 |
) |
|
|
(2.60 |
) |
|
|
(4.46 |
) |
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.22 |
|
|
|
8.67 |
|
|
|
8.99 |
|
|
|
8.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended December 31, |
|
12 Months Ended December 31, |
|
|
|
Items and Fuel - Regional only |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses |
|
$ |
1,446 |
|
|
$ |
1,598 |
|
|
$ |
5,983 |
|
|
$ |
6,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net (2) |
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(29 |
) |
|
|
(24 |
) |
|
|
|
Regional operating
expenses, excluding special items |
|
|
1,437 |
|
|
|
1,582 |
|
|
|
5,954 |
|
|
|
6,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
|
(260 |
) |
|
|
(437 |
) |
|
|
(1,230 |
) |
|
|
(2,009 |
) |
|
|
|
Regional operating
expenses, excluding special items and fuel |
|
$ |
1,177 |
|
|
$ |
1,145 |
|
|
$ |
4,724 |
|
|
$ |
4,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM |
|
|
19.78 |
|
|
|
22.15 |
|
|
|
20.38 |
|
|
|
23.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM (2) |
|
|
(0.13 |
) |
|
|
(0.23 |
) |
|
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
|
Regional operating
expenses per ASM, excluding special items |
|
|
19.65 |
|
|
|
21.93 |
|
|
|
20.28 |
|
|
|
23.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes per ASM |
|
|
(3.55 |
) |
|
|
(6.06 |
) |
|
|
(4.19 |
) |
|
|
(7.14 |
) |
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel |
|
|
16.10 |
|
|
|
15.87 |
|
|
|
16.09 |
|
|
|
15.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended December 31, |
|
12 Months Ended December 31, |
|
|
|
Items and Fuel - Total Mainline and Regional |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
$ |
8,562 |
|
|
$ |
9,300 |
|
|
$ |
34,786 |
|
|
$ |
38,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(441 |
) |
|
|
(466 |
) |
|
|
(1,051 |
) |
|
|
(800 |
) |
|
|
|
Regional
operating special items, net (2) |
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(29 |
) |
|
|
(24 |
) |
|
|
|
Total operating
expenses, excluding special items |
|
|
8,112 |
|
|
|
8,818 |
|
|
|
33,706 |
|
|
|
37,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes - mainline |
|
|
(1,314 |
) |
|
|
(2,222 |
) |
|
|
(6,226 |
) |
|
|
(10,592 |
) |
|
|
|
Aircraft fuel
and related taxes - regional |
|
|
(260 |
) |
|
|
(437 |
) |
|
|
(1,230 |
) |
|
|
(2,009 |
) |
|
|
|
Total operating
expenses, excluding special items and fuel |
|
$ |
6,538 |
|
|
$ |
6,159 |
|
|
$ |
26,250 |
|
|
$ |
24,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM |
|
|
13.08 |
|
|
|
14.30 |
|
|
|
12.94 |
|
|
|
14.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM: |
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(0.67 |
) |
|
|
(0.72 |
) |
|
|
(0.39 |
) |
|
|
(0.30 |
) |
|
|
|
Regional
operating special items, net (2) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
12.39 |
|
|
|
13.56 |
|
|
|
12.54 |
|
|
|
14.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per ASM: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes - mainline |
|
|
(2.01 |
) |
|
|
(3.42 |
) |
|
|
(2.32 |
) |
|
|
(3.99 |
) |
|
|
|
Aircraft fuel
and related taxes - regional |
|
|
(0.40 |
) |
|
|
(0.67 |
) |
|
|
(0.46 |
) |
|
|
(0.76 |
) |
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.99 |
|
|
|
9.47 |
|
|
|
9.77 |
|
|
|
9.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
The 2015 fourth quarter mainline operating special items
totaled a net charge of $441 million, which principally included
$305 million of merger integration expenses related to information
technology, alignment of labor union contracts, professional fees,
severance, share-based compensation, fleet restructuring,
re-branding of aircraft and airport facilities, relocation and
training, as well as a $22 million charge for bankruptcy related
items primarily consisting of fair value adjustments for bankruptcy
settlement obligations. The 2015 twelve month period mainline
operating special items totaled a net charge of $1.1 billion, which
principally consisted of $1.0 billion of merger integration
expenses as described above. In addition, the Company recorded a
$38 million charge in connection with the dissolution of the Texas
Aero Engine Services joint venture. These charges were offset in
part by a $66 million credit related to proceeds received from a
legal settlement and a $53 million credit for bankruptcy related
items primarily consisting of fair value adjustments for bankruptcy
settlement obligations. The 2014 fourth quarter mainline operating
special items totaled a net charge of $466 million, which
principally included $280 million of merger integration expenses
related to information technology, alignment of labor union
contracts, professional fees, severance and retention, share-based
compensation, fleet restructuring, re-branding of aircraft and
airport facilities, relocation and training. In addition, the
Company recorded a net $116 million charge for bankruptcy related
items principally consisting of fair value adjustments for
bankruptcy settlement obligations as well as a $70 million charge
related primarily to certain spare parts asset impairments. The
2014 twelve month period mainline operating special items totaled a
net charge of $800 million, which principally included $810 million
of merger integration expenses as described above. In addition, the
Company recorded a net $81 million charge for bankruptcy related
items principally consisting of fair value adjustments for
bankruptcy settlement obligations, $164 million in other special
charges, including an $81 million charge to revise prior estimates
of certain aircraft residual values and other spare parts asset
impairments, as well as $54 million in charges primarily relating
to the buyout of certain aircraft leases. 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 fourth quarter and twelve month period regional
operating special items principally related to merger integration
expenses. The 2014 fourth quarter regional operating special items
totaled a net charge of $16 million, which principally included a
$24 million charge due to a new pilot labor contract at the
Company’s Envoy regional subsidiary, offset in part by an $8
million gain on the sale of certain spare parts. The 2014 twelve
month period regional operating special items totaled a net charge
of $24 million, which consisted primarily of the above charge and
gain as well as $7 million of merger integration expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 |
) |
The 2015 fourth quarter nonoperating special items totaled a
net charge of $592 million related to a write off of all of the
value of Venezuelan bolivars held by the Company due to continued
lack of repatriations and deterioration of economic conditions in
Venezuela. The 2015 twelve month period nonoperating special items
totaled a net charge of $594 million, which principally included a
$592 million charge to write off all of the value of Venezuelan
bolivars as described above and $41 million in charges primarily
related to non-cash write offs of unamortized debt discount and
debt issuance costs associated with refinancing our secured term
loan facilities, prepayments of certain aircraft financings and the
purchase and subsequent remarketing of certain special facility
revenue bonds. These charges were offset in part by a $22 million
gain associated with the sale of an investment and a $17 million
early debt extinguishment gain associated with the repayment of
American’s AAdvantage loan with Citibank. The 2014 fourth quarter
nonoperating special items totaled a net charge of $31 million
primarily related to Venezuelan foreign currency losses. The 2014
twelve month period nonoperating special items totaled a net charge
of $132 million, which principally included $56 million of early
debt extinguishment costs primarily related to the prepayment of
7.50% senior secured notes and other indebtedness, a $43 million
charge for Venezuelan foreign currency losses and $33 million of
non-cash interest accretion on bankruptcy settlement
obligations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4 |
) |
In connection with the preparation of the Company’s financial
statements for the fourth quarter of 2015, management has
determined that it is more likely than not that substantially all
of its deferred tax assets, which include its NOLs, will be
realized. Accordingly, the Company reversed $3.0 billion of the
valuation allowance as of December 31, 2015. This resulted in a
special $3.0 billion non-cash tax benefit for the 2015 fourth
quarter and twelve month periods. During the 2014 fourth
quarter, the Company recorded a special $6 million non-cash
deferred income tax benefit related to certain indefinite-lived
intangible assets. During the 2014 twelve month period, 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 U.S.
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 2014 twelve month period
included a special $16 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) |
|
|
|
|
|
|
|
|
|
|
December 31,
2015 |
|
December 31,
2014 |
|
|
|
|
|
|
(as adjusted) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
$ |
390 |
|
|
$ |
994 |
|
|
|
|
Short-term
investments |
|
5,864 |
|
|
|
6,309 |
|
|
|
|
Restricted cash
and short-term investments |
|
695 |
|
|
|
774 |
|
|
|
|
Accounts
receivable, net |
|
1,425 |
|
|
|
1,771 |
|
|
|
|
Aircraft fuel,
spare parts and supplies, net |
|
863 |
|
|
|
1,004 |
|
|
|
|
Prepaid expenses
and other |
|
748 |
|
|
|
898 |
|
|
|
|
Total current assets |
|
9,985 |
|
|
|
11,750 |
|
|
|
|
|
|
|
|
|
|
|
Operating property and
equipment |
|
|
|
|
|
|
Flight
equipment |
|
33,091 |
|
|
|
28,213 |
|
|
|
|
Ground property
and equipment |
|
6,402 |
|
|
|
5,900 |
|
|
|
|
Equipment
purchase deposits |
|
1,067 |
|
|
|
1,230 |
|
|
|
|
Total property and
equipment, at cost |
|
40,560 |
|
|
|
35,343 |
|
|
|
|
Less accumulated
depreciation and amortization |
|
(13,144 |
) |
|
|
(12,259 |
) |
|
|
|
Total property and
equipment, net |
|
27,416 |
|
|
|
23,084 |
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
|
|
|
Intangibles,
net |
|
2,249 |
|
|
|
2,240 |
|
|
|
|
Deferred tax
asset |
|
2,477 |
|
|
|
- |
|
|
|
|
Other
assets |
|
2,103 |
|
|
|
2,060 |
|
|
|
|
Total other assets |
|
10,920 |
|
|
|
8,391 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
48,321 |
|
|
$ |
43,225 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Current
maturities of long-term debt and capital leases |
$ |
2,231 |
|
|
$ |
1,677 |
|
|
|
|
Accounts
payable |
|
1,469 |
|
|
|
1,377 |
|
|
|
|
Accrued salaries
and wages |
|
1,205 |
|
|
|
1,194 |
|
|
|
|
Air traffic
liability |
|
3,747 |
|
|
|
4,252 |
|
|
|
|
Frequent flyer
liability |
|
2,525 |
|
|
|
2,807 |
|
|
|
|
Other accrued
liabilities |
|
2,334 |
|
|
|
2,097 |
|
|
|
|
Total current
liabilities |
|
13,511 |
|
|
|
13,404 |
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
|
|
|
Long-term debt
and capital leases, net of current maturities |
|
18,330 |
|
|
|
16,043 |
|
|
|
|
Pension and
postretirement benefits |
|
7,450 |
|
|
|
7,562 |
|
|
|
|
Deferred gains
and credits, net |
|
667 |
|
|
|
829 |
|
|
|
|
Bankruptcy
settlement obligations |
|
193 |
|
|
|
325 |
|
|
|
|
Other
liabilities |
|
2,535 |
|
|
|
3,041 |
|
|
|
|
Total noncurrent
liabilities |
|
29,175 |
|
|
|
27,800 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
Common
stock |
|
6 |
|
|
|
7 |
|
|
|
|
Additional
paid-in capital |
|
11,591 |
|
|
|
15,135 |
|
|
|
|
Accumulated
other comprehensive loss |
|
(4,732 |
) |
|
|
(4,559 |
) |
|
|
|
Accumulated
deficit |
|
(1,230 |
) |
|
|
(8,562 |
) |
|
|
|
Total stockholders'
equity |
|
5,635 |
|
|
|
2,021 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
48,321 |
|
|
$ |
43,225 |
|
|
|
|
|
|
|
|
|
|
Note: The condensed consolidated balance sheet as of
December 31, 2014 has been adjusted to reflect the reclassification
of debt issuance costs and deferred income taxes in connection with
the adoption of certain recently issued accounting standards. The
adoption of these accounting standards had no impact on the
Company's condensed consolidated statements of
operations. |
|
|
|
|
|
|
|
|
|
|
|
Corporate Communications
817-967-1577
mediarelations@aa.com
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