American Airlines Group Inc. (NASDAQ:AAL) today reported its second
quarter 2016 results. The Company’s second quarter highlights
include:
- Second quarter 2016 pre-tax profit of $1.5 billion, or
$1.6 billion excluding special charges, and net profit of $950
million, or $1.0 billion excluding special charges
- Second quarter 2016 earnings per diluted share was
$1.68 versus $2.41 for the same period last year. Second quarter
adjusted1 earnings per diluted share was $2.81 versus $2.62
for the second quarter 2015
- Returned more than $1.7 billion to stockholders through
share repurchases and dividends
- On July 12, the Company announced new agreements with
its AAdvantage® credit card
partners, Citi, Barclaycard US and MasterCard which are expected to
add $200 million in pre-tax income in the second half of 2016, $550
million in 2017, and $800 million in 2018, with continued modest
improvement in pre-tax income each year beyond, in each case as
compared to results expected under the prior credit card
arrangements
- On July 18, the Company reached an agreement with
Airbus to defer delivery of the 22 A350 XWB aircraft it has on
order, providing more widebody fleet flexibility and reducing 2017
and 2018 capital expenditures
The Company reported a Generally Accepted Accounting Principles
(GAAP) net profit of $950 million, or $1.68 per diluted share.
This compares to a GAAP net profit of $1.7 billion in the second
quarter 2015, or $2.41 per diluted share. As a result of the
reversal of the valuation allowance on the Company’s deferred tax
assets as of December 31, 2015, the Company’s 2016 results include
a $543 million provision for income taxes at an effective rate of
approximately 38 percent, of which $541 million is non-cash due to
net operating loss utilization. There was no tax provision for
federal income taxes recorded in 2015.
The impact of the year-over-year change in non-cash income tax
expense is removed by comparing pre-tax income. The Company
reported GAAP pre-tax income in the second quarter of $1.5 billion,
and pre-tax income excluding special charges of $1.6 billion. These
are the second highest second quarter pre-tax earnings in Company
history, behind only the $1.7 billion GAAP and $1.9 billion
excluding special charges, reported in the second quarter of 2015.
Adjusted earnings per diluted share was a record $2.81, up 7
percent from $2.62 per diluted share in the second quarter of
2015.
“These strong second-quarter results are the result of the hard
work by our people to improve every aspect of our airline. The more
than 100,000 team members of American Airlines are doing an
outstanding job of taking care of our customers,” said Doug Parker,
Chairman and CEO. “In addition, our recently announced AAdvantage
credit card agreements show that the world's largest airline
network is a powerful draw for both our business partners and our
customers.”
Second Quarter 2016 Highlights
|
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|
GAAP |
|
Non-GAAP |
|
|
2Q16 |
2Q15 |
|
2Q16 |
2Q15 |
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|
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|
Total operating revenues ($ mil) |
$ |
10,363 |
|
$ |
10,827 |
|
|
$ |
10,363 |
|
$ |
10,827 |
|
|
Total operating expenses ($ mil) |
|
8,612 |
|
|
8,906 |
|
|
|
8,547 |
|
|
8,752 |
|
|
Operating income |
|
1,751 |
|
|
1,921 |
|
|
|
1,816 |
|
|
2,075 |
|
|
|
|
|
|
|
|
|
Pre-tax income ($ mil) |
|
1,493 |
|
|
1,719 |
|
|
|
1,594 |
|
|
1,862 |
|
|
Pre-tax margin |
|
14.4 |
% |
|
15.9 |
% |
|
|
15.4 |
% |
|
17.2 |
% |
|
|
|
|
|
|
|
|
Net income ($ mil) |
|
950 |
|
|
1,704 |
|
|
|
1,001 |
|
|
1,854 |
|
|
|
|
|
|
|
|
|
Fully diluted earnings per share |
$ |
1.68 |
|
$ |
2.41 |
|
|
$ |
1.77 |
|
$ |
2.62 |
|
|
Adjusted earnings per diluted share 1 |
|
- |
|
|
- |
|
|
$ |
2.81 |
|
$ |
2.62 |
|
|
|
|
|
|
|
|
Revenue and Cost Comparisons
Second quarter 2016 revenue was hurt by competitive capacity
growth, continued global macroeconomic softness and foreign
currency weakness. Total revenue in the second quarter was $10.4
billion, a decrease of 4.3 percent versus the second quarter of
2015 on a 1.9 percent increase in total available seat miles
(ASMs). Consolidated passenger revenue per ASM (PRASM) was 12.71
cents, down 6.3 percent versus the second quarter of 2015.
Consolidated passenger yield was 15.42 cents, down 5.3 percent
year-over-year.
Total operating expenses in the second quarter were $8.6
billion, a decrease of 3.3 percent compared to the second quarter
2015 due primarily to a 24.9 percent decrease in consolidated fuel
expense. The Company’s second quarter operating expenses include a
$98 million accrual related to the Company’s profit sharing
program, which took effect in 2016.
Second quarter mainline cost per available seat mile (CASM) was
11.32 cents, down 4.6 percent on a 1.2 percent increase in mainline
ASMs versus the second quarter 2015. Excluding fuel and special
charges, mainline CASM was 9.12 cents, up 4.0 percent. Regional
CASM was 18.78 cents, down 9.8 percent versus the second quarter
2015 on an 8.0 percent increase in regional ASMs. Excluding fuel
and special charges, regional CASM was 15.29 cents, down 4.6
percent.
Fleet
As part of the Company’s fleet renewal program, the Company
invested $1.2 billion in new aircraft during the second quarter,
including 14 new mainline aircraft and 14 new regional aircraft,
while removing 31 aircraft from the fleet.
On July 18, the Company reached an agreement with Airbus to
defer delivery of the 22 A350 XWB aircraft it has on order. Under
the new schedule, the Company expects to take delivery of its first
A350 aircraft in late 2018, instead of the spring of 2017 as
previously expected. The Company now expects to take delivery of
these A350 aircraft from 2018 through 2022, with an average
deferral of 26 months. This change reduces the Company’s planned
capital expenditures for 2017 and 2018 and provides capacity
flexibility.
Capital Return Program
As of June 30, 2016, the Company had approximately $9.5 billion
in total available liquidity, consisting of unrestricted cash and
short-term investments of $7.1 billion and $2.4 billion in undrawn
revolver capacity. The Company also had a restricted cash position
of $640 million.
The Company returned more than $1.7 billion to its stockholders
in the second quarter through the payment of $58 million in
quarterly dividends and the repurchase of $1.7 billion of common
stock, or 50.2 million shares, at an average price of $33.55 per
share. The Company has returned approximately $8.4 billion to
stockholders through share repurchases and dividends since it began
its capital return program in mid-2014.
Shares repurchased under the buyback programs 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 programs do not obligate the Company to repurchase any
specific number of shares or continue a dividend for any fixed
period, and may be suspended at any time at the Company's
discretion.
The Company also declared a dividend of $0.10 per share to be
paid on August 19, 2016, to stockholders of record as of August 5,
2016.
Notable Accomplishments
Finance, Marketing, and Network
Accomplishments
- On July 7, the U.S. Department of Transportation (DOT)
tentatively awarded American the authority for five daily flights
to José Martí International Airport in Havana, Cuba, including four
from Miami and one from Charlotte. Service is expected to begin in
November. In addition, on June 10 the DOT awarded American the
right to operate scheduled service between Miami and five cities in
Cuba – Camaguey, Cienfuegos, Holguin, Santa Clara and Varadero.
Service to those cities is expected to begin in September and will
represent American’s first-ever scheduled flights to Cuba
- The Company completed several financing transactions during the
quarter, including the issuance of a new $1 billion 7-year term
loan secured by the Company’s mainline spare parts, $844 million in
special facility revenue refunding bonds related to the John F.
Kennedy International Airport (JFK) which refinanced existing
outstanding JFK bonds that carried a higher interest rate. In
addition, the Company issued the $829 million 2016-2 Enhanced
Equipment Trust Certificates consisting of both AA and A tranches.
This transaction was then augmented in early July with a $227
million B tranche
- The AAdvantage® program was named Best Elite Program in the
Americas by the Freddie Awards
- American Airlines Cargo was named Cargo Airline of the Year for
the second year in a row, and Best Cargo Airline of the Americas
for the ninth year in a row, in voting sponsored by Air Cargo
News
- On June 23, American launched nonstop service between Los
Angeles and Auckland, New Zealand with the Boeing 787-8
Integration Accomplishments
- American has now made Flagship University in Fort Worth the
single training location for all of American’s 25,000 flight
attendants
- The Fleet Service team became the first uniformed work group to
have a common uniform on May 1
- Forty mainline aircraft were painted in the new livery,
bringing the total to 76 percent of our combined mainline
fleet
Community Relations Accomplishments
- American announced a multi-year, multi-million dollar
commitment to Stand Up To Cancer
- On May 26, the first American Airlines Charity Golf Tournament
raised more than $225,000 for three Dallas/Fort Worth-based
charities, including the Bush Institute’s Military Service
Initiative, Komen Dallas County and American Airlines Education
Foundation
- American’s Regional Community Relations Council at Tech Ops –
Tulsa pledged $50,000 to Tulsa Public Schools for professional
Science, Technology, Engineering and Math development for teachers
as part of the Support Our Schools campaign
- The American Airlines Education Foundation awarded more than
$750,000 in scholarships to 287 children of employees. Each
recipient received a $2,500 scholarship, and first-generation
college students received an additional one-time award of $1,000.
This fall, these students will study at 177 universities across 39
states, Puerto Rico and Washington, D.C.
Special Items
In the second quarter, the Company recognized $101 million in
net special charges before the effect of income taxes,
including:
- Operating special charges totaled a net charge of $65 million,
which principally included $115 million of merger integration
expenses, offset in part by a $56 million net credit principally
consisting of fair value adjustments for bankruptcy settlement
obligations
- Nonoperating special charges of $36 million related principally
to non-cash write offs of unamortized bond discounts and issuance
costs in connection with a bond refinancing
Conference Call / Webcast Details
The Company will conduct a live audio webcast of its
earnings call today at 7:30 a.m. CDT, 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 Aug. 22.
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.
CDT 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 serve
more than 1,000 destinations with about 14,250 daily flights to
over 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.
1 Adjusted earnings exclude non-cash income tax provision
and special charges where noted. See the accompanying notes in the
Financial Tables section of this press release for further
explanation, including a reconciliation of all GAAP to non-GAAP
financial information.
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 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.; costs of ongoing data security
compliance requirements and the impact of any significant data
security breach; 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
postretirement 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; 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 and noise
regulation; the impact associated with climate change, including
increased regulation to reduce emissions of greenhouse gases; 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, more stringent duty-time
regulations, increased flight hour requirements for commercial
airline pilots and other factors that have caused a shortage of
pilots; the impact of possible future increases in insurance costs
or reductions in available insurance coverage; the effect on the
Company’s financial position and liquidity of being party to or
involved in litigation; an inability to use net operating losses
carried forward from prior taxable years (NOL Carryforwards); any
impairment in the amount of the Company’s goodwill and an inability
to realize the full value of the Company’s 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 programs 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 quarter ended June 30, 2016 (especially
in Part I, Item 2, Management’s Discussion and Analysis of
Financial Condition and Results of Operations, and Part II, Item
1A, Risk Factors) 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.
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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 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
passenger |
$ |
7,209 |
|
|
$ |
7,655 |
|
|
|
(5.8 |
) |
|
$ |
13,773 |
|
|
$ |
14,644 |
|
|
|
(5.9 |
) |
|
Regional
passenger |
|
1,786 |
|
|
|
1,759 |
|
|
|
1.6 |
|
|
|
3,309 |
|
|
|
3,211 |
|
|
|
3.1 |
|
|
Cargo |
|
174 |
|
|
|
194 |
|
|
|
(10.4 |
) |
|
|
336 |
|
|
|
388 |
|
|
|
(13.6 |
) |
|
Other |
|
1,194 |
|
|
|
1,219 |
|
|
|
(2.1 |
) |
|
|
2,380 |
|
|
|
2,411 |
|
|
|
(1.3 |
) |
|
Total
operating revenues |
|
10,363 |
|
|
|
10,827 |
|
|
|
(4.3 |
) |
|
|
19,798 |
|
|
|
20,654 |
|
|
|
(4.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
1,314 |
|
|
|
1,774 |
|
|
|
(25.9 |
) |
|
|
2,343 |
|
|
|
3,318 |
|
|
|
(29.4 |
) |
|
Salaries,
wages and benefits |
|
2,670 |
|
|
|
2,364 |
|
|
|
13.0 |
|
|
|
5,322 |
|
|
|
4,737 |
|
|
|
12.4 |
|
|
Regional
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
279 |
|
|
|
349 |
|
|
|
(20.0 |
) |
|
|
498 |
|
|
|
660 |
|
|
|
(24.5 |
) |
|
Other |
|
1,239 |
|
|
|
1,208 |
|
|
|
2.5 |
|
|
|
2,452 |
|
|
|
2,359 |
|
|
|
3.9 |
|
|
Maintenance, materials and repairs |
|
453 |
|
|
|
502 |
|
|
|
(9.7 |
) |
|
|
871 |
|
|
|
995 |
|
|
|
(12.5 |
) |
|
Other
rent and landing fees |
|
458 |
|
|
|
451 |
|
|
|
1.5 |
|
|
|
879 |
|
|
|
859 |
|
|
|
2.4 |
|
|
Aircraft
rent |
|
302 |
|
|
|
316 |
|
|
|
(4.3 |
) |
|
|
609 |
|
|
|
633 |
|
|
|
(3.8 |
) |
|
Selling
expenses |
|
334 |
|
|
|
350 |
|
|
|
(4.7 |
) |
|
|
642 |
|
|
|
686 |
|
|
|
(6.4 |
) |
|
Depreciation and amortization |
|
374 |
|
|
|
340 |
|
|
|
10.1 |
|
|
|
729 |
|
|
|
676 |
|
|
|
7.8 |
|
|
Special
items, net |
|
62 |
|
|
|
144 |
|
|
|
(57.3 |
) |
|
|
161 |
|
|
|
447 |
|
|
|
(64.1 |
) |
|
Other |
|
1,127 |
|
|
|
1,108 |
|
|
|
1.7 |
|
|
|
2,205 |
|
|
|
2,147 |
|
|
|
2.7 |
|
|
Total
operating expenses |
|
8,612 |
|
|
|
8,906 |
|
|
|
(3.3 |
) |
|
|
16,711 |
|
|
|
17,517 |
|
|
|
(4.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
1,751 |
|
|
|
1,921 |
|
|
|
(8.8 |
) |
|
|
3,087 |
|
|
|
3,137 |
|
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
16 |
|
|
|
10 |
|
|
|
58.8 |
|
|
|
28 |
|
|
|
19 |
|
|
|
47.1 |
|
|
Interest
expense, net |
|
(249 |
) |
|
|
(223 |
) |
|
|
11.5 |
|
|
|
(488 |
) |
|
|
(432 |
) |
|
|
12.7 |
|
|
Other,
net |
|
(25 |
) |
|
|
11 |
|
|
|
nm |
|
|
|
(17 |
) |
|
|
(62 |
) |
|
|
(71.7 |
) |
|
Total
nonoperating expense, net |
|
(258 |
) |
|
|
(202 |
) |
|
|
28.0 |
|
|
|
(477 |
) |
|
|
(475 |
) |
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
1,493 |
|
|
|
1,719 |
|
|
|
(13.2 |
) |
|
|
2,610 |
|
|
|
2,662 |
|
|
|
(2.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
543 |
|
|
|
15 |
|
|
|
nm |
|
|
|
960 |
|
|
|
26 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
950 |
|
|
$ |
1,704 |
|
|
|
(44.3 |
) |
|
$ |
1,650 |
|
|
$ |
2,636 |
|
|
|
(37.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.69 |
|
|
$ |
2.47 |
|
|
|
|
|
|
$ |
2.82 |
|
|
$ |
3.81 |
|
|
|
|
|
|
Diluted |
$ |
1.68 |
|
|
$ |
2.41 |
|
|
|
|
|
|
$ |
2.80 |
|
|
$ |
3.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
563,000 |
|
|
|
688,727 |
|
|
|
|
|
|
|
584,622 |
|
|
|
692,571 |
|
|
|
|
|
|
Diluted |
|
566,040 |
|
|
|
707,611 |
|
|
|
|
|
|
|
588,764 |
|
|
|
712,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2016 |
|
2015 |
|
Change |
|
|
2016 |
|
2015 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
51,927 |
|
51,632 |
|
|
0.6 |
|
% |
|
98,147 |
|
96,481 |
|
|
1.7 |
|
% |
|
Available seat miles
(ASM) (millions) |
|
62,670 |
|
61,920 |
|
|
1.2 |
|
% |
|
120,234 |
|
117,773 |
|
|
2.1 |
|
% |
|
Passenger load factor
(percent) |
|
82.9 |
|
83.4 |
|
|
(0.5 |
) |
pts |
|
81.6 |
|
81.9 |
|
|
(0.3 |
) |
pts |
|
Yield (cents) |
|
13.88 |
|
14.83 |
|
|
(6.4 |
) |
% |
|
14.03 |
|
15.18 |
|
|
(7.5 |
) |
% |
|
Passenger revenue per
ASM (cents) |
|
11.50 |
|
12.36 |
|
|
(7.0 |
) |
% |
|
11.46 |
|
12.43 |
|
|
(7.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
37,699 |
|
37,823 |
|
|
(0.3 |
) |
% |
|
72,246 |
|
71,774 |
|
|
0.7 |
|
% |
|
Departures
(thousands) |
|
283 |
|
285 |
|
|
(0.8 |
) |
% |
|
555 |
|
555 |
|
|
- |
|
% |
|
Aircraft at end of
period |
|
947 |
|
963 |
|
|
(1.7 |
) |
% |
|
947 |
|
963 |
|
|
(1.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands) |
|
901 |
|
903 |
|
|
(0.2 |
) |
% |
|
1,746 |
|
1,736 |
|
|
0.6 |
|
% |
|
Average stage length
(miles) |
|
1,241 |
|
1,236 |
|
|
0.4 |
|
% |
|
1,223 |
|
1,216 |
|
|
0.6 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
931 |
|
936 |
|
|
(0.5 |
) |
% |
|
1,786 |
|
1,781 |
|
|
0.2 |
|
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.41 |
|
1.90 |
|
|
(25.5 |
) |
% |
|
1.31 |
|
1.86 |
|
|
(29.6 |
) |
% |
|
Full-time equivalent
employees at end of period |
|
103,100 |
|
100,700 |
|
|
2.4 |
|
% |
|
103,100 |
|
100,700 |
|
|
2.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
11.32 |
|
11.87 |
|
|
(4.6 |
) |
% |
|
11.45 |
|
12.31 |
|
|
(7.0 |
) |
% |
|
Operating cost per ASM
excluding special items (cents) |
|
11.22 |
|
11.64 |
|
|
(3.6 |
) |
% |
|
11.31 |
|
11.93 |
|
|
(5.2 |
) |
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.12 |
|
8.77 |
|
|
4.0 |
|
% |
|
9.36 |
|
9.11 |
|
|
2.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
6,409 |
|
6,189 |
|
|
3.5 |
|
% |
|
11,959 |
|
11,530 |
|
|
3.7 |
|
% |
|
Available seat miles
(millions) |
|
8,081 |
|
7,481 |
|
|
8.0 |
|
% |
|
15,581 |
|
14,417 |
|
|
8.1 |
|
% |
|
Passenger load factor
(percent) |
|
79.3 |
|
82.7 |
|
|
(3.4 |
) |
pts |
|
76.8 |
|
80.0 |
|
|
(3.2 |
) |
pts |
|
Yield (cents) |
|
27.87 |
|
28.42 |
|
|
(1.9 |
) |
% |
|
27.67 |
|
27.85 |
|
|
(0.6 |
) |
% |
|
Passenger revenue per
ASM (cents) |
|
22.10 |
|
23.51 |
|
|
(6.0 |
) |
% |
|
21.24 |
|
22.27 |
|
|
(4.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
14,252 |
|
14,377 |
|
|
(0.9 |
) |
% |
|
26,620 |
|
26,619 |
|
|
- |
|
% |
|
Aircraft at end of
period |
|
600 |
|
578 |
|
|
3.8 |
|
% |
|
600 |
|
578 |
|
|
3.8 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
191 |
|
182 |
|
|
4.9 |
|
% |
|
369 |
|
350 |
|
|
5.4 |
|
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.46 |
|
1.91 |
|
|
(23.7 |
) |
% |
|
1.35 |
|
1.89 |
|
|
(28.4 |
) |
% |
|
Full-time equivalent
employees at end of period (B) |
|
20,400 |
|
19,700 |
|
|
3.6 |
|
% |
|
20,400 |
|
19,700 |
|
|
3.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
18.78 |
|
20.82 |
|
|
(9.8 |
) |
% |
|
18.94 |
|
20.94 |
|
|
(9.6 |
) |
% |
|
Operating cost per ASM
excluding special items (cents) |
|
18.75 |
|
20.69 |
|
|
(9.4 |
) |
% |
|
18.88 |
|
20.82 |
|
|
(9.3 |
) |
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
15.29 |
|
16.02 |
|
|
(4.6 |
) |
% |
|
15.68 |
|
16.24 |
|
|
(3.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
58,336 |
|
57,821 |
|
|
0.9 |
|
% |
|
110,106 |
|
108,011 |
|
|
1.9 |
|
% |
|
Available seat miles
(millions) |
|
70,751 |
|
69,401 |
|
|
1.9 |
|
% |
|
135,815 |
|
132,190 |
|
|
2.7 |
|
% |
|
Cargo ton miles
(millions) |
|
610 |
|
594 |
|
|
2.6 |
|
% |
|
1,153 |
|
1,148 |
|
|
0.5 |
|
% |
|
Passenger load factor
(percent) |
|
82.5 |
|
83.3 |
|
|
(0.8 |
) |
pts |
|
81.1 |
|
81.7 |
|
|
(0.6 |
) |
pts |
|
Yield (cents) |
|
15.42 |
|
16.28 |
|
|
(5.3 |
) |
% |
|
15.51 |
|
16.53 |
|
|
(6.1 |
) |
% |
|
Passenger revenue per
ASM (cents) |
|
12.71 |
|
13.57 |
|
|
(6.3 |
) |
% |
|
12.58 |
|
13.51 |
|
|
(6.9 |
) |
% |
|
Total revenue per ASM
(cents) |
|
14.65 |
|
15.60 |
|
|
(6.1 |
) |
% |
|
14.58 |
|
15.62 |
|
|
(6.7 |
) |
% |
|
Cargo yield per ton
mile (cents) |
|
28.48 |
|
32.62 |
|
|
(12.7 |
) |
% |
|
29.09 |
|
33.83 |
|
|
(14.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
51,951 |
|
52,200 |
|
|
(0.5 |
) |
% |
|
98,866 |
|
98,393 |
|
|
0.5 |
|
% |
|
Aircraft at end of
period |
|
1,547 |
|
1,541 |
|
|
0.4 |
|
% |
|
1,547 |
|
1,541 |
|
|
0.4 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
1,122 |
|
1,118 |
|
|
0.4 |
|
% |
|
2,155 |
|
2,131 |
|
|
1.1 |
|
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.42 |
|
1.90 |
|
|
(25.2 |
) |
% |
|
1.32 |
|
1.87 |
|
|
(29.3 |
) |
% |
|
Full-time equivalent
employees at end of period (B) |
|
123,500 |
|
120,400 |
|
|
2.6 |
|
% |
|
123,500 |
|
120,400 |
|
|
2.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
12.17 |
|
12.83 |
|
|
(5.2 |
) |
% |
|
12.30 |
|
13.25 |
|
|
(7.1 |
) |
% |
|
Operating cost per ASM
excluding special items (cents) |
|
12.08 |
|
12.61 |
|
|
(4.2 |
) |
% |
|
12.18 |
|
12.90 |
|
|
(5.6 |
) |
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.83 |
|
9.55 |
|
|
2.9 |
|
% |
|
10.09 |
|
9.89 |
|
|
2.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Revenue Statistics by
Region |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Change |
|
|
2016 |
|
2015 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic - Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
33,418 |
|
33,170 |
|
|
0.7 |
|
% |
|
63,808 |
|
62,755 |
|
|
1.7 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
38,701 |
|
38,321 |
|
|
1.0 |
|
% |
|
75,244 |
|
73,993 |
|
|
1.7 |
|
% |
|
Passenger
load factor (percent) |
|
86.3 |
|
86.6 |
|
|
(0.3 |
) |
pts |
|
84.8 |
|
84.8 |
|
|
- |
|
pts |
|
Yield
(cents) |
|
14.47 |
|
15.32 |
|
|
(5.6 |
) |
% |
|
14.59 |
|
15.57 |
|
|
(6.3 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
12.49 |
|
13.26 |
|
|
(5.8 |
) |
% |
|
12.37 |
|
13.21 |
|
|
(6.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Consolidated - Mainline and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Regional (A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
39,826 |
|
39,359 |
|
|
1.2 |
|
% |
|
75,767 |
|
74,285 |
|
|
2.0 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
46,782 |
|
45,802 |
|
|
2.1 |
|
% |
|
90,825 |
|
88,411 |
|
|
2.7 |
|
% |
|
Passenger
load factor (percent) |
|
85.1 |
|
85.9 |
|
|
(0.8 |
) |
pts |
|
83.4 |
|
84.0 |
|
|
(0.6 |
) |
pts |
|
Yield
(cents) |
|
16.63 |
|
17.38 |
|
|
(4.3 |
) |
% |
|
16.65 |
|
17.48 |
|
|
(4.7 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
14.15 |
|
14.94 |
|
|
(5.2 |
) |
% |
|
13.89 |
|
14.69 |
|
|
(5.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
7,421 |
|
7,570 |
|
|
(2.0 |
) |
% |
|
15,476 |
|
15,753 |
|
|
(1.8 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
9,469 |
|
9,895 |
|
|
(4.3 |
) |
% |
|
19,949 |
|
20,488 |
|
|
(2.6 |
) |
% |
|
Passenger
load factor (percent) |
|
78.4 |
|
76.5 |
|
|
1.9 |
|
pts |
|
77.6 |
|
76.9 |
|
|
0.7 |
|
pts |
|
Yield
(cents) |
|
12.65 |
|
14.42 |
|
|
(12.3 |
) |
% |
|
13.24 |
|
15.48 |
|
|
(14.5 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
9.91 |
|
11.04 |
|
|
(10.2 |
) |
% |
|
10.27 |
|
11.90 |
|
|
(13.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
7,879 |
|
8,221 |
|
|
(4.2 |
) |
% |
|
12,680 |
|
12,993 |
|
|
(2.4 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
10,677 |
|
10,553 |
|
|
1.2 |
|
% |
|
17,570 |
|
17,321 |
|
|
1.4 |
|
% |
|
Passenger
load factor (percent) |
|
73.8 |
|
77.9 |
|
|
(4.1 |
) |
pts |
|
72.2 |
|
75.0 |
|
|
(2.8 |
) |
pts |
|
Yield
(cents) |
|
14.34 |
|
14.43 |
|
|
(0.6 |
) |
% |
|
14.39 |
|
14.45 |
|
|
(0.4 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
10.58 |
|
11.24 |
|
|
(5.9 |
) |
% |
|
10.38 |
|
10.84 |
|
|
(4.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
3,209 |
|
2,671 |
|
|
20.2 |
|
% |
|
6,183 |
|
4,980 |
|
|
24.2 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
3,823 |
|
3,151 |
|
|
21.3 |
|
% |
|
7,471 |
|
5,971 |
|
|
25.1 |
|
% |
|
Passenger
load factor (percent) |
|
83.9 |
|
84.8 |
|
|
(0.9 |
) |
pts |
|
82.8 |
|
83.4 |
|
|
(0.6 |
) |
pts |
|
Yield
(cents) |
|
9.52 |
|
11.04 |
|
|
(13.7 |
) |
% |
|
9.60 |
|
11.14 |
|
|
(13.8 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
7.99 |
|
9.35 |
|
|
(14.5 |
) |
% |
|
7.94 |
|
9.29 |
|
|
(14.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
18,509 |
|
18,462 |
|
|
0.3 |
|
% |
|
34,339 |
|
33,726 |
|
|
1.8 |
|
% |
|
Available
seat miles (ASM) (millions) |
|
23,969 |
|
23,599 |
|
|
1.6 |
|
% |
|
44,990 |
|
43,780 |
|
|
2.8 |
|
% |
|
Passenger
load factor (percent) |
|
77.2 |
|
78.2 |
|
|
(1.0 |
) |
pts |
|
76.3 |
|
77.0 |
|
|
(0.7 |
) |
pts |
|
Yield
(cents) |
|
12.83 |
|
13.94 |
|
|
(8.0 |
) |
% |
|
13.01 |
|
14.44 |
|
|
(9.9 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
9.90 |
|
10.90 |
|
|
(9.2 |
) |
% |
|
9.93 |
|
11.12 |
|
|
(10.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Revenue statistics for all Regional
flying are included herein. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
Percent Change |
6 Months Ended June 30, |
Percent Change |
|
|
Reconciliation of Pre-Tax Income Excluding Special
Items |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(in millions, except per share amounts) |
|
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income as reported |
|
$ |
1,493 |
|
|
$ |
1,719 |
|
|
$ |
2,610 |
|
|
$ |
2,662 |
|
|
|
|
Pre-tax special
items: |
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
62 |
|
|
|
144 |
|
|
|
161 |
|
|
|
447 |
|
|
|
|
Regional
operating special items, net |
|
|
3 |
|
|
|
10 |
|
|
|
8 |
|
|
|
18 |
|
|
|
|
Nonoperating
special items, net (2) |
|
|
36 |
|
|
|
(11 |
) |
|
|
36 |
|
|
|
(19 |
) |
|
|
|
Total pre-tax special
items |
|
|
101 |
|
|
|
143 |
|
|
|
205 |
|
|
|
446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,594 |
|
|
$ |
1,862 |
|
|
-14 |
% |
$ |
2,815 |
|
|
$ |
3,108 |
|
|
-9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income as
reported |
|
$ |
1,493 |
|
|
$ |
1,719 |
|
|
$ |
2,610 |
|
|
$ |
2,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
10,363 |
|
|
$ |
10,827 |
|
|
$ |
19,798 |
|
|
$ |
20,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin |
|
|
14.4 |
% |
|
|
15.9 |
% |
|
|
13.2 |
% |
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,594 |
|
|
$ |
1,862 |
|
|
$ |
2,815 |
|
|
$ |
3,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
10,363 |
|
|
$ |
10,827 |
|
|
$ |
19,798 |
|
|
$ |
20,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin
excluding special items |
|
|
15.4 |
% |
|
|
17.2 |
% |
|
|
14.2 |
% |
|
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
950 |
|
|
$ |
1,704 |
|
|
$ |
1,650 |
|
|
$ |
2,636 |
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Total
pre-tax special items |
|
|
101 |
|
|
|
143 |
|
|
|
205 |
|
|
|
446 |
|
|
|
|
Income tax
special items |
|
|
- |
|
|
|
7 |
|
|
|
- |
|
|
|
16 |
|
|
|
|
Net tax
effect of special items |
|
|
(50 |
) |
|
|
- |
|
|
|
(89 |
) |
|
|
- |
|
|
|
|
Net income excluding
special items |
|
$ |
1,001 |
|
|
$ |
1,854 |
|
|
-46 |
% |
$ |
1,766 |
|
|
$ |
3,098 |
|
|
-43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Excluding Special Items and
Non-Cash |
|
|
|
|
|
|
|
|
|
|
|
Income Tax Provision (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
950 |
|
|
$ |
1,704 |
|
|
$ |
1,650 |
|
|
$ |
2,636 |
|
|
|
|
Total pre-tax special
items |
|
|
101 |
|
|
|
143 |
|
|
|
205 |
|
|
|
446 |
|
|
|
|
Total non-cash income
tax provision |
|
|
541 |
|
|
|
7 |
|
|
|
954 |
|
|
|
16 |
|
|
|
|
Net income excluding
special items and non-cash income tax provision |
|
$ |
1,592 |
|
|
$ |
1,854 |
|
|
-14 |
% |
$ |
2,809 |
|
|
$ |
3,098 |
|
|
-9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings Per Share
Excluding |
|
|
|
|
|
|
|
|
|
|
|
Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
special items |
|
$ |
1,001 |
|
|
$ |
1,854 |
|
|
$ |
1,766 |
|
|
$ |
3,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
563,000 |
|
|
|
688,727 |
|
|
|
584,622 |
|
|
|
692,571 |
|
|
|
|
Diluted |
|
|
566,040 |
|
|
|
707,611 |
|
|
|
588,764 |
|
|
|
712,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.78 |
|
|
$ |
2.69 |
|
|
$ |
3.02 |
|
|
$ |
4.47 |
|
|
|
|
Diluted |
|
$ |
1.77 |
|
|
$ |
2.62 |
|
|
$ |
3.00 |
|
|
$ |
4.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings Per Share
Excluding |
|
|
|
|
|
|
|
|
|
|
|
Special Items and Non-Cash Income Tax Provision
(3) |
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
special items and non-cash income tax provision |
|
$ |
1,592 |
|
|
$ |
1,854 |
|
|
$ |
2,809 |
|
|
$ |
3,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
563,000 |
|
|
|
688,727 |
|
|
|
584,622 |
|
|
|
692,571 |
|
|
|
|
Diluted |
|
|
566,040 |
|
|
|
707,611 |
|
|
|
588,764 |
|
|
|
712,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share (excludes special items and non-cash income tax
provision): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.83 |
|
|
$ |
2.69 |
|
|
$ |
4.81 |
|
|
$ |
4.47 |
|
|
|
|
Diluted |
|
$ |
2.81 |
|
|
$ |
2.62 |
|
|
$ |
4.77 |
|
|
$ |
4.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
6 Months Ended June 30, |
|
|
|
Reconciliation of Operating Income Excluding Special
Items |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as reported |
|
$ |
1,751 |
|
|
$ |
1,921 |
|
|
$ |
3,087 |
|
|
$ |
3,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special
items, net |
|
|
62 |
|
|
|
144 |
|
|
|
161 |
|
|
|
447 |
|
|
|
|
Regional
operating special items, net |
|
|
3 |
|
|
|
10 |
|
|
|
8 |
|
|
|
18 |
|
|
|
|
Operating income
excluding special items |
|
$ |
1,816 |
|
|
$ |
2,075 |
|
|
$ |
3,256 |
|
|
$ |
3,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended June 30, |
|
6 Months Ended June 30, |
|
|
|
Items and Fuel - Mainline only |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
8,612 |
|
|
$ |
8,906 |
|
|
$ |
16,711 |
|
|
$ |
17,517 |
|
|
|
|
Less regional expenses
as reported: |
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
(279 |
) |
|
|
(349 |
) |
|
|
(498 |
) |
|
|
(660 |
) |
|
|
|
Other |
|
|
(1,239 |
) |
|
|
(1,208 |
) |
|
|
(2,452 |
) |
|
|
(2,359 |
) |
|
|
|
Total mainline
operating expenses as reported |
|
|
7,094 |
|
|
|
7,349 |
|
|
|
13,761 |
|
|
|
14,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(62 |
) |
|
|
(144 |
) |
|
|
(161 |
) |
|
|
(447 |
) |
|
|
|
Mainline operating
expenses, excluding special items |
|
|
7,032 |
|
|
|
7,205 |
|
|
|
13,600 |
|
|
|
14,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
|
(1,314 |
) |
|
|
(1,774 |
) |
|
|
(2,343 |
) |
|
|
(3,318 |
) |
|
|
|
Mainline operating
expenses, excluding special items and fuel |
|
$ |
5,718 |
|
|
$ |
5,431 |
|
|
$ |
11,257 |
|
|
$ |
10,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM as reported |
|
|
11.32 |
|
|
|
11.87 |
|
|
|
11.45 |
|
|
|
12.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net per ASM (1) |
|
|
(0.10 |
) |
|
|
(0.23 |
) |
|
|
(0.13 |
) |
|
|
(0.38 |
) |
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
11.22 |
|
|
|
11.64 |
|
|
|
11.31 |
|
|
|
11.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM |
|
|
(2.10 |
) |
|
|
(2.86 |
) |
|
|
(1.95 |
) |
|
|
(2.82 |
) |
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.12 |
|
|
|
8.77 |
|
|
|
9.36 |
|
|
|
9.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended June 30, |
|
6 Months Ended June 30, |
|
|
|
Items and Fuel - Regional only |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses as reported |
|
$ |
1,518 |
|
|
$ |
1,557 |
|
|
$ |
2,950 |
|
|
$ |
3,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net |
|
|
(3 |
) |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(18 |
) |
|
|
|
Regional operating
expenses, excluding special items |
|
|
1,515 |
|
|
|
1,547 |
|
|
|
2,942 |
|
|
|
3,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
|
(279 |
) |
|
|
(349 |
) |
|
|
(498 |
) |
|
|
(660 |
) |
|
|
|
Regional operating
expenses, excluding special items and fuel |
|
$ |
1,236 |
|
|
$ |
1,198 |
|
|
$ |
2,444 |
|
|
$ |
2,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM as reported |
|
|
18.78 |
|
|
|
20.82 |
|
|
|
18.94 |
|
|
|
20.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM |
|
|
(0.03 |
) |
|
|
(0.13 |
) |
|
|
(0.05 |
) |
|
|
(0.12 |
) |
|
|
|
Regional operating
expenses per ASM, excluding special items |
|
|
18.75 |
|
|
|
20.69 |
|
|
|
18.88 |
|
|
|
20.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM |
|
|
(3.46 |
) |
|
|
(4.66 |
) |
|
|
(3.20 |
) |
|
|
(4.58 |
) |
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel |
|
|
15.29 |
|
|
|
16.02 |
|
|
|
15.68 |
|
|
|
16.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended June 30, |
|
6 Months Ended June 30, |
|
|
|
Items and Fuel - Total Mainline and Regional |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
(in millions) |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
8,612 |
|
|
$ |
8,906 |
|
|
$ |
16,711 |
|
|
$ |
17,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(62 |
) |
|
|
(144 |
) |
|
|
(161 |
) |
|
|
(447 |
) |
|
|
|
Regional
operating special items, net |
|
|
(3 |
) |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(18 |
) |
|
|
|
Total operating
expenses, excluding special items |
|
|
8,547 |
|
|
|
8,752 |
|
|
|
16,542 |
|
|
|
17,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline |
|
|
(1,314 |
) |
|
|
(1,774 |
) |
|
|
(2,343 |
) |
|
|
(3,318 |
) |
|
|
|
Aircraft
fuel and related taxes - regional |
|
|
(279 |
) |
|
|
(349 |
) |
|
|
(498 |
) |
|
|
(660 |
) |
|
|
|
Total operating
expenses, excluding special items and fuel |
|
$ |
6,954 |
|
|
$ |
6,629 |
|
|
$ |
13,701 |
|
|
$ |
13,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM as reported |
|
|
12.17 |
|
|
|
12.83 |
|
|
|
12.30 |
|
|
|
13.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM: |
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(0.09 |
) |
|
|
(0.21 |
) |
|
|
(0.12 |
) |
|
|
(0.34 |
) |
|
|
|
Regional
operating special items, net |
|
|
- |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
12.08 |
|
|
|
12.61 |
|
|
|
12.18 |
|
|
|
12.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per ASM: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline |
|
|
(1.86 |
) |
|
|
(2.56 |
) |
|
|
(1.73 |
) |
|
|
(2.51 |
) |
|
|
|
Aircraft
fuel and related taxes - regional |
|
|
(0.39 |
) |
|
|
(0.50 |
) |
|
|
(0.37 |
) |
|
|
(0.50 |
) |
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.83 |
|
|
|
9.55 |
|
|
|
10.09 |
|
|
|
9.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
The 2016 second quarter mainline operating special items
totaled a net charge of $62 million, which principally included
$112 million of merger integration expenses, offset in part by a
$56 million net credit for bankruptcy related items principally
consisting of fair value adjustments for bankruptcy settlement
obligations. The 2016 six month period mainline operating special
items totaled a net charge of $161 million, which principally
included $242 million of merger integration expenses, offset in
part by a $61 million net credit for bankruptcy related items
principally consisting of fair value adjustments for bankruptcy
settlement obligations. For the 2016 second quarter and six month
period, merger integration expenses included costs related to
information technology, alignment of labor union contracts, fleet
restructuring, re-branding of aircraft, airport facilities and
uniforms, professional fees, severance, as well as relocation and
training. |
|
|
|
|
|
|
|
|
|
|
|
The 2015 second quarter mainline operating special items
totaled a net charge of $144 million, which principally included
$224 million of merger integration expenses, offset in part by a
$68 million net credit for bankruptcy related items principally
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 $543 million of merger integration expenses, offset in
part by a $73 million net credit for bankruptcy related items
principally consisting of fair value adjustments for bankruptcy
settlement obligations. For the 2015 second quarter and six month
period, merger integration expenses included costs related to
alignment of labor union contracts, fleet restructuring,
information technology, professional fees, severance, re-branding
of aircraft, airport facilities and uniforms, relocation and
training, as well as share-based compensation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
In connection with a bond refinancing, the Company recorded a
$36 million nonoperating special charge in the 2016 second quarter
and six month period related to non-cash write offs of unamortized
bond discounts and issuance costs as well as payments of redemption
premiums and fees. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 |
) |
As a result of the Company's profitability and the reversal of
the valuation allowance on its deferred tax assets at December 31,
2015, the Company was required to recognize a $543 million and $960
million provision for income taxes in the 2016 second quarter and
six month period, respectively, on a Generally Accepted Accounting
Principles basis. Of these amounts, $541 million and $954 million
in the 2016 second quarter and six month period, respectively, was
non-cash due to the utilization of net operating losses (NOLs). For
periods prior to 2016, the Company recognized a nominal tax
provision for certain states and international jurisdictions where
NOLs were limited or not available to be used. Accordingly, amounts
reported in the 2016 second quarter and six month period for income
tax provision and net income are not comparable to the respective
2015 periods. Therefore, the Company is presenting net income and
earnings per share excluding special items and non-cash income tax
provision in order to provide more meaningful period-over-period
comparisons. |
|
|
American Airlines Group
Inc. |
|
|
Condensed Consolidated Balance
Sheets |
|
|
(In millions) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash |
$ |
446 |
|
|
$ |
390 |
|
|
|
Short-term investments |
|
6,672 |
|
|
|
5,864 |
|
|
|
Restricted cash and short-term investments |
|
640 |
|
|
|
695 |
|
|
|
Accounts
receivable, net |
|
1,593 |
|
|
|
1,425 |
|
|
|
Aircraft
fuel, spare parts and supplies, net |
|
999 |
|
|
|
863 |
|
|
|
Prepaid
expenses and other |
|
834 |
|
|
|
748 |
|
|
|
Total
current assets |
|
11,184 |
|
|
|
9,985 |
|
|
|
|
|
|
|
|
|
Operating property and
equipment |
|
|
|
|
|
Flight
equipment |
|
35,553 |
|
|
|
33,185 |
|
|
|
Ground
property and equipment |
|
6,726 |
|
|
|
6,402 |
|
|
|
Equipment
purchase deposits |
|
1,136 |
|
|
|
1,067 |
|
|
|
Total
property and equipment, at cost |
|
43,415 |
|
|
|
40,654 |
|
|
|
Less
accumulated depreciation and amortization |
|
(13,804 |
) |
|
|
(13,144 |
) |
|
|
Total
property and equipment, net |
|
29,611 |
|
|
|
27,510 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
|
|
Intangibles,
net |
|
2,213 |
|
|
|
2,249 |
|
|
|
Deferred tax
asset |
|
1,965 |
|
|
|
2,477 |
|
|
|
Other
assets |
|
1,987 |
|
|
|
2,103 |
|
|
|
Total
other assets |
|
10,256 |
|
|
|
10,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
51,051 |
|
|
$ |
48,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Current
maturities of long-term debt and capital leases |
$ |
1,715 |
|
|
$ |
2,231 |
|
|
|
Accounts
payable |
|
1,944 |
|
|
|
1,563 |
|
|
|
Accrued
salaries and wages |
|
1,327 |
|
|
|
1,205 |
|
|
|
Air traffic
liability |
|
4,984 |
|
|
|
3,747 |
|
|
|
Loyalty
program liability |
|
2,511 |
|
|
|
2,525 |
|
|
|
Other
accrued liabilities |
|
2,436 |
|
|
|
2,334 |
|
|
|
Total
current liabilities |
|
14,917 |
|
|
|
13,605 |
|
|
|
|
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
|
|
Long-term
debt and capital leases, net of current maturities |
|
21,131 |
|
|
|
18,330 |
|
|
|
Pension and
postretirement benefits |
|
7,426 |
|
|
|
7,450 |
|
|
|
Deferred
gains and credits, net |
|
590 |
|
|
|
667 |
|
|
|
Other
liabilities |
|
2,675 |
|
|
|
2,728 |
|
|
|
Total
noncurrent liabilities |
|
31,822 |
|
|
|
29,175 |
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Common
stock |
|
5 |
|
|
|
6 |
|
|
|
Additional
paid-in capital |
|
8,351 |
|
|
|
11,591 |
|
|
|
|
Accumulated
other comprehensive loss |
|
(4,763 |
) |
|
|
(4,732 |
) |
|
|
|
Retained
earnings (deficit) |
|
719 |
|
|
|
(1,230 |
) |
|
|
Total
stockholders' equity |
|
4,312 |
|
|
|
5,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
51,051 |
|
|
$ |
48,415 |
|
|
|
Corporate Communications
817-967-1577
mediarelations@aa.com
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