American Airlines Group Inc. (NASDAQ:AAL) today reported its
second-quarter 2017 results, including these highlights:
- Recorded a second-quarter 2017 pre-tax profit of $1.3
billion, or $1.5 billion excluding net special items,1 and net
profit of $803 million, or $944 million excluding net special
items
- Reported second-quarter earnings of $1.63 per diluted
share. Diluted earnings per share excluding net special items were
$1.92, up 8.5 percent versus 2016
- Reported a 7.2 percent increase in total revenue, to
$11.1 billion, and a 5.7 percent increase in total revenue per
available seat mile (TRASM)
- Returned $500 million to stockholders in the second
quarter through the repurchase of 10.0 million shares for $450
million and dividends of $50 million
“We are making important long-term investments in our product
and our team at American Airlines. Our strong revenue growth is a
credit to our more than 120,000 team members and evidence that
these investments are working,” said Doug Parker, Chairman and CEO.
“Looking forward, we are enthusiastic about our prospects for the
second half of 2017, as well as 2018 and beyond.”
|
|
|
|
|
|
|
|
|
|
GAAP |
|
Non-GAAP1 |
|
|
|
2Q17 |
|
2Q16 |
|
2Q17 |
|
2Q16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues ($ mil) |
$ |
11,105 |
|
|
$ |
10,363 |
|
|
$ |
11,105 |
|
|
$ |
10,363 |
|
|
|
Total operating expenses ($ mil) |
|
9,570 |
|
|
|
8,612 |
|
|
|
9,367 |
|
|
|
8,547 |
|
|
|
Operating income ($ mil) |
|
1,535 |
|
|
|
1,751 |
|
|
|
1,738 |
|
|
|
1,816 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income ($ mil) |
|
1,291 |
|
|
|
1,493 |
|
|
|
1,496 |
|
|
|
1,594 |
|
|
|
Pre-tax margin |
|
11.6 |
% |
|
|
14.4 |
% |
|
|
13.5 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
Net income ($ mil) |
|
803 |
|
|
|
950 |
|
|
|
944 |
|
|
|
1,001 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted share |
$ |
1.63 |
|
|
$ |
1.68 |
|
|
$ |
1.92 |
|
|
$ |
1.77 |
|
|
|
|
|
|
|
|
|
|
Revenue and Expenses
Strong passenger demand and improving yields drove a 7.2 percent
year-over-year increase in total revenue, to $11.1 billion. Notable
areas of passenger yield strength were in the Domestic, Central
American and South American, and Caribbean regions. Cargo revenue
was up 13.1 percent to $196 million due to a 15.1 percent increase
in cargo ton miles. Other revenue was up 11.1 percent to $1.3
billion primarily due to the new co-branded credit card agreements
that became effective in the third quarter of 2016. Second-quarter
TRASM increased by 5.7 percent, on a 1.4 percent increase in total
available seat miles.
Total second-quarter operating expenses were $9.6 billion, up
11.1 percent year-over-year due primarily to a 15.4 percent
increase in consolidated fuel expense and a 12.5 percent increase
in salaries and benefits resulting from the company’s recent
investments in its team members. Total second-quarter cost per
available seat mile (CASM) was 13.34 cents, up 9.6 percent.
Excluding fuel and special items, total CASM was 10.49 cents, up
6.8 percent.
Commercial Initiatives
American has now expanded Basic Economy into 78 markets,
including into Canada. Early results continue to be in-line with
initial expectations, with approximately half of American Airlines
customers buying up to Main Cabin when given the option between
that and Basic Economy. The company expects to roll out Basic
Economy across the rest of its domestic network by the end of
September.
With an average premium of more than $400, customer adoption of
the company’s new Premium Economy product has been strong. These
seats are now being installed on American’s Boeing 777-200
aircraft. The company expects to retrofit most of its other
widebody aircraft with this highly-differentiated seating choice
for international customers by the end of 2018.
As part of its $200 million investment in the luxury travel
experience, American debuted its Flagship First Dining experience
and newly-renovated Flagship Lounge at New York John F. Kennedy
International Airport. In addition, access to Flagship Lounges has
been expanded to include Business Class customers traveling on
qualifying international and transcontinental flights. Additional
Flagship Lounge renovations and Flagship First Dining locations are
planned at other hubs.
American Airlines President Robert Isom said, “Our investments
in our product and our team are beginning to pay real dividends as
we give customers more reasons to fly on American. When combined
with new revenue management tools and sales initiatives targeting
high yielding corporate customers, we believe our revenue growth
potential is strong.
“We expect third-quarter TRASM to increase approximately 0.5 to
2.5 percent year-over-year, which reflects continued improvement in
customer demand for corporate and leisure travel. We expect
third-quarter pre-tax margin excluding special items to be between
10.0 and 12.0 percent.2 We also expect our fourth-quarter TRASM
growth to exceed the third quarter’s growth rate,” Isom said.
Capital Investments, Fleet, and Shareholder
Returns
American plans to invest $4.1 billion in new aircraft this year
as it continues to renew its fleet. During the quarter, the company
invested $1.1 billion in aircraft as it took delivery of 16
mainline aircraft and 4 regional aircraft. These new deliveries
will replace aircraft that are expected to leave the fleet. In
addition, the company expects to invest $1.6 billion in
non-aircraft capital expenditures in 2017 focused on integrating
the airline, product enhancements, and operational
improvements.
Since mid-2014, the company has returned more than $10.7 billion
to stockholders primarily through share repurchases and dividends,
and reduced the share count by 35 percent to 487.7 million shares.
As of June 30, the company had approximately $1.0 billion remaining
of its $2.0 billion share repurchase authority.3
The company declared a dividend of $0.10 per share, to be paid
on August 28, 2017, to stockholders of record as of August 14,
2017.
Investor Update
For additional financial forecasting detail, please refer to the
company’s investor relations update, filed with the Securities and
Exchange Commission on Form 8-K. This filing will be available at
aa.com/investorrelations.
Conference Call / Webcast Details
The company will conduct a live audio webcast of its
earnings call today at 7:30 a.m. CT, which will be available
to the public on a listen-only basis at aa.com/investorrelations.
An archive of the webcast will be available on the website
through August 28.
Notes
- In the second quarter, the company recognized $205 million in
net special items before the effect of income taxes, principally
consisting of merger integration expenses, fleet restructuring
expenses driven by the merger and certain one-time charges to
adjust the vacation accruals as a result of the salary increases
for our pilots and flight attendants. 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.
- American is unable to reconcile certain forward-looking
projections to GAAP as the nature or amount of special items cannot
be determined at this time.
- Share repurchases under the buyback program may be made through
a variety of methods, which may include open market purchases,
privately negotiated transactions, block trades or accelerated
share repurchase transactions. Any such repurchases will be made
from time to time subject to market and economic conditions,
applicable legal requirements and other relevant factors. The
program does not obligate the company to repurchase any specific
number of shares or continue a dividend for any fixed period, and
may be suspended at any time at the company's discretion.
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.
Cautionary Statement Regarding Forward-Looking
Statements and Information
Certain of the statements contained in this
report should be considered forward-looking statements within the
meaning of the Securities Act of 1933, as amended (the Securities
Act), the Securities Exchange Act of 1934, as amended (the Exchange
Act), and 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
our plans, objectives, expectations, intentions, estimates and
strategies for the future, and other statements that are not
historical facts. These forward-looking statements are based on our
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, those set forth in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2017 (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 our other
filings with the Securities and Exchange Commission. There may be
other factors of which we are 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. We do 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. Any forward-looking statements speak only as of the
date hereof or as of the dates indicated in the statements.
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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 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
passenger |
$ |
7,747 |
|
|
$ |
7,209 |
|
|
7.5 |
|
|
$ |
14,353 |
|
|
$ |
13,773 |
|
|
4.2 |
|
|
Regional
passenger |
|
1,835 |
|
|
|
1,786 |
|
|
2.8 |
|
|
|
3,384 |
|
|
|
3,309 |
|
|
2.3 |
|
|
Cargo |
|
196 |
|
|
|
174 |
|
|
13.1 |
|
|
|
368 |
|
|
|
336 |
|
|
9.8 |
|
|
Other |
|
1,327 |
|
|
|
1,194 |
|
|
11.1 |
|
|
|
2,624 |
|
|
|
2,380 |
|
|
10.2 |
|
|
Total
operating revenues |
|
11,105 |
|
|
|
10,363 |
|
|
7.2 |
|
|
|
20,729 |
|
|
|
19,798 |
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
1,510 |
|
|
|
1,314 |
|
|
14.9 |
|
|
|
2,912 |
|
|
|
2,343 |
|
|
24.2 |
|
|
Salaries,
wages and benefits |
|
3,003 |
|
|
|
2,670 |
|
|
12.5 |
|
|
|
5,829 |
|
|
|
5,322 |
|
|
9.5 |
|
|
Regional
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
329 |
|
|
|
279 |
|
|
18.0 |
|
|
|
648 |
|
|
|
498 |
|
|
30.0 |
|
|
|
Other |
|
1,291 |
|
|
|
1,239 |
|
|
4.3 |
|
|
|
2,546 |
|
|
|
2,452 |
|
|
3.8 |
|
|
Maintenance, materials and repairs |
|
495 |
|
|
|
453 |
|
|
9.4 |
|
|
|
987 |
|
|
|
871 |
|
|
13.3 |
|
|
Other
rent and landing fees |
|
452 |
|
|
|
458 |
|
|
(1.2 |
) |
|
|
892 |
|
|
|
879 |
|
|
1.5 |
|
|
Aircraft
rent |
|
294 |
|
|
|
302 |
|
|
(2.8 |
) |
|
|
589 |
|
|
|
609 |
|
|
(3.3 |
) |
|
Selling
expenses |
|
376 |
|
|
|
334 |
|
|
12.5 |
|
|
|
694 |
|
|
|
642 |
|
|
8.0 |
|
|
Depreciation and amortization |
|
418 |
|
|
|
374 |
|
|
11.5 |
|
|
|
822 |
|
|
|
729 |
|
|
12.8 |
|
|
Special
items, net |
|
202 |
|
|
|
62 |
|
|
nm |
|
|
|
320 |
|
|
|
161 |
|
|
99.4 |
|
|
Other |
|
1,200 |
|
|
|
1,127 |
|
|
6.5 |
|
|
|
2,354 |
|
|
|
2,205 |
|
|
6.8 |
|
|
Total
operating expenses |
|
9,570 |
|
|
|
8,612 |
|
|
11.1 |
|
|
|
18,593 |
|
|
|
16,711 |
|
|
11.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
1,535 |
|
|
|
1,751 |
|
|
(12.3 |
) |
|
|
2,136 |
|
|
|
3,087 |
|
|
(30.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
24 |
|
|
|
16 |
|
|
52.7 |
|
|
|
45 |
|
|
|
28 |
|
|
57.7 |
|
|
Interest
expense, net |
|
(263 |
) |
|
|
(249 |
) |
|
5.8 |
|
|
|
(520 |
) |
|
|
(488 |
) |
|
6.6 |
|
|
Other,
net |
|
(5 |
) |
|
|
(25 |
) |
|
(80.6 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
|
(69.2 |
) |
|
Total
nonoperating expense, net |
|
(244 |
) |
|
|
(258 |
) |
|
(5.5 |
) |
|
|
(480 |
) |
|
|
(477 |
) |
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
1,291 |
|
|
|
1,493 |
|
|
(13.5 |
) |
|
|
1,656 |
|
|
|
2,610 |
|
|
(36.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
488 |
|
|
|
543 |
|
|
(10.1 |
) |
|
|
619 |
|
|
|
960 |
|
|
(35.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
803 |
|
|
$ |
950 |
|
|
(15.5 |
) |
|
$ |
1,037 |
|
|
$ |
1,650 |
|
|
(37.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.64 |
|
|
$ |
1.69 |
|
|
|
|
$ |
2.08 |
|
|
$ |
2.82 |
|
|
|
|
|
Diluted |
$ |
1.63 |
|
|
$ |
1.68 |
|
|
|
|
$ |
2.07 |
|
|
$ |
2.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
490,818 |
|
|
|
563,000 |
|
|
|
|
|
497,360 |
|
|
|
584,622 |
|
|
|
|
|
Diluted |
|
492,965 |
|
|
|
566,040 |
|
|
|
|
|
500,381 |
|
|
|
588,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
53,177 |
|
51,927 |
|
2.4 |
|
% |
|
98,388 |
|
98,147 |
|
0.2 |
|
% |
|
Available seat miles
(ASM) (millions) |
|
63,520 |
|
62,670 |
|
1.4 |
|
% |
|
120,083 |
|
120,234 |
|
(0.1 |
) |
% |
|
Passenger load factor
(percent) |
|
83.7 |
|
82.9 |
|
0.8 |
|
pts |
|
81.9 |
|
81.6 |
|
0.3 |
|
pts |
|
Yield (cents) |
|
14.57 |
|
13.88 |
|
4.9 |
|
% |
|
14.59 |
|
14.03 |
|
4.0 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
12.20 |
|
11.50 |
|
6.0 |
|
% |
|
11.95 |
|
11.46 |
|
4.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
37,767 |
|
37,699 |
|
0.2 |
|
% |
|
71,522 |
|
72,246 |
|
(1.0 |
) |
% |
|
Departures
(thousands) |
|
278 |
|
283 |
|
(1.7 |
) |
% |
|
541 |
|
555 |
|
(2.5 |
) |
% |
|
Aircraft at end of
period |
|
956 |
|
947 |
|
1.0 |
|
% |
|
956 |
|
947 |
|
1.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands) |
|
896 |
|
901 |
|
(0.5 |
) |
% |
|
1,715 |
|
1,746 |
|
(1.8 |
) |
% |
|
Average stage length
(miles) |
|
1,254 |
|
1,241 |
|
1.0 |
|
% |
|
1,228 |
|
1,223 |
|
0.4 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
934 |
|
931 |
|
0.4 |
|
% |
|
1,766 |
|
1,786 |
|
(1.1 |
) |
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.62 |
|
1.41 |
|
14.5 |
|
% |
|
1.65 |
|
1.31 |
|
25.7 |
|
% |
|
Full-time equivalent
employees at end of period |
|
106,100 |
|
103,100 |
|
2.9 |
|
% |
|
106,100 |
|
103,100 |
|
2.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
12.51 |
|
11.32 |
|
10.6 |
|
% |
|
12.82 |
|
11.45 |
|
12.0 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
12.20 |
|
11.22 |
|
8.7 |
|
% |
|
12.56 |
|
11.31 |
|
11.0 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.82 |
|
9.12 |
|
7.6 |
|
% |
|
10.13 |
|
9.36 |
|
8.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
6,387 |
|
6,409 |
|
(0.3 |
) |
% |
|
12,160 |
|
11,959 |
|
1.7 |
|
% |
|
Available seat miles
(millions) |
|
8,223 |
|
8,081 |
|
1.7 |
|
% |
|
16,000 |
|
15,581 |
|
2.7 |
|
% |
|
Passenger load factor
(percent) |
|
77.7 |
|
79.3 |
|
(1.6 |
) |
pts |
|
76.0 |
|
76.8 |
|
(0.8 |
) |
pts |
|
Yield (cents) |
|
28.74 |
|
27.87 |
|
3.1 |
|
% |
|
27.83 |
|
27.67 |
|
0.6 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
22.32 |
|
22.10 |
|
1.0 |
|
% |
|
21.15 |
|
21.24 |
|
(0.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
14,049 |
|
14,252 |
|
(1.4 |
) |
% |
|
26,654 |
|
26,620 |
|
0.1 |
|
% |
|
Aircraft at end of
period |
|
627 |
|
600 |
|
4.5 |
|
% |
|
627 |
|
600 |
|
4.5 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
195 |
|
191 |
|
1.8 |
|
% |
|
377 |
|
369 |
|
2.2 |
|
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.69 |
|
1.46 |
|
15.9 |
|
% |
|
1.72 |
|
1.35 |
|
27.2 |
|
% |
|
Full-time equivalent
employees at end of period (B) |
|
22,200 |
|
20,400 |
|
8.8 |
|
% |
|
22,200 |
|
20,400 |
|
8.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
19.71 |
|
18.78 |
|
4.9 |
|
% |
|
19.96 |
|
18.94 |
|
5.4 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
19.69 |
|
18.75 |
|
5.0 |
|
% |
|
19.94 |
|
18.88 |
|
5.6 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
15.69 |
|
15.29 |
|
2.6 |
|
% |
|
15.89 |
|
15.68 |
|
1.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
59,564 |
|
58,336 |
|
2.1 |
|
% |
|
110,548 |
|
110,106 |
|
0.4 |
|
% |
|
Available seat miles
(millions) |
|
71,743 |
|
70,751 |
|
1.4 |
|
% |
|
136,083 |
|
135,815 |
|
0.2 |
|
% |
|
Cargo ton miles
(millions) |
|
701 |
|
610 |
|
15.1 |
|
% |
|
1,321 |
|
1,153 |
|
14.5 |
|
% |
|
Passenger load factor
(percent) |
|
83.0 |
|
82.5 |
|
0.5 |
|
pts |
|
81.2 |
|
81.1 |
|
0.1 |
|
pts |
|
Yield (cents) |
|
16.09 |
|
15.42 |
|
4.3 |
|
% |
|
16.04 |
|
15.51 |
|
3.4 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
13.36 |
|
12.71 |
|
5.0 |
|
% |
|
13.03 |
|
12.58 |
|
3.6 |
|
% |
|
Total revenue per ASM
(cents) |
|
15.48 |
|
14.65 |
|
5.7 |
|
% |
|
15.23 |
|
14.58 |
|
4.5 |
|
% |
|
Cargo yield per ton
mile (cents) |
|
27.98 |
|
28.48 |
|
(1.7 |
) |
% |
|
27.88 |
|
29.09 |
|
(4.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
51,816 |
|
51,951 |
|
(0.3 |
) |
% |
|
98,176 |
|
98,866 |
|
(0.7 |
) |
% |
|
Aircraft at end of
period |
|
1,583 |
|
1,547 |
|
2.3 |
|
% |
|
1,583 |
|
1,547 |
|
2.3 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
1,129 |
|
1,122 |
|
0.6 |
|
% |
|
2,143 |
|
2,155 |
|
(0.6 |
) |
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.63 |
|
1.42 |
|
14.7 |
|
% |
|
1.66 |
|
1.32 |
|
26.0 |
|
% |
|
Full-time equivalent
employees at end of period (B) |
|
128,300 |
|
123,500 |
|
3.9 |
|
% |
|
128,300 |
|
123,500 |
|
3.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
13.34 |
|
12.17 |
|
9.6 |
|
% |
|
13.66 |
|
12.30 |
|
11.0 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
13.06 |
|
12.08 |
|
8.1 |
|
% |
|
13.42 |
|
12.18 |
|
10.2 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
10.49 |
|
9.83 |
|
6.8 |
|
% |
|
10.81 |
|
10.09 |
|
7.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, |
|
|
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic - Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
32,779 |
|
33,418 |
|
(1.9 |
) |
% |
|
62,310 |
|
63,808 |
|
(2.3 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
38,092 |
|
38,701 |
|
(1.6 |
) |
% |
|
73,897 |
|
75,244 |
|
(1.8 |
) |
% |
|
Passenger
load factor (percent) |
|
86.1 |
|
86.3 |
|
(0.2 |
) |
pts |
|
84.3 |
|
84.8 |
|
(0.5 |
) |
pts |
|
Yield
(cents) |
|
15.55 |
|
14.47 |
|
7.4 |
|
% |
|
15.44 |
|
14.59 |
|
5.8 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
13.38 |
|
12.49 |
|
7.1 |
|
% |
|
13.02 |
|
12.37 |
|
5.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Consolidated - Mainline and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Regional (A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
39,166 |
|
39,826 |
|
(1.7 |
) |
% |
|
74,470 |
|
75,767 |
|
(1.7 |
) |
% |
|
Available
seat miles (millions) |
|
46,315 |
|
46,782 |
|
(1.0 |
) |
% |
|
89,897 |
|
90,825 |
|
(1.0 |
) |
% |
|
Passenger
load factor (percent) |
|
84.6 |
|
85.1 |
|
(0.5 |
) |
pts |
|
82.8 |
|
83.4 |
|
(0.6 |
) |
pts |
|
Yield
(cents) |
|
17.70 |
|
16.63 |
|
6.4 |
|
% |
|
17.46 |
|
16.65 |
|
4.8 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
14.96 |
|
14.15 |
|
5.7 |
|
% |
|
14.46 |
|
13.89 |
|
4.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
7,592 |
|
7,421 |
|
2.3 |
|
% |
|
15,082 |
|
15,476 |
|
(2.5 |
) |
% |
|
Available
seat miles (millions) |
|
9,739 |
|
9,469 |
|
2.9 |
|
% |
|
19,513 |
|
19,949 |
|
(2.2 |
) |
% |
|
Passenger
load factor (percent) |
|
78.0 |
|
78.4 |
|
(0.4 |
) |
pts |
|
77.3 |
|
77.6 |
|
(0.3 |
) |
pts |
|
Yield
(cents) |
|
14.64 |
|
12.65 |
|
15.7 |
|
% |
|
14.76 |
|
13.24 |
|
11.5 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
11.41 |
|
9.91 |
|
15.1 |
|
% |
|
11.41 |
|
10.27 |
|
11.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
8,849 |
|
7,879 |
|
12.3 |
|
% |
|
13,349 |
|
12,680 |
|
5.3 |
|
% |
|
Available
seat miles (millions) |
|
10,927 |
|
10,677 |
|
2.3 |
|
% |
|
17,342 |
|
17,570 |
|
(1.3 |
) |
% |
|
Passenger
load factor (percent) |
|
81.0 |
|
73.8 |
|
7.2 |
|
pts |
|
77.0 |
|
72.2 |
|
4.8 |
|
pts |
|
Yield
(cents) |
|
13.04 |
|
14.34 |
|
(9.1 |
) |
% |
|
13.20 |
|
14.39 |
|
(8.3 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
10.56 |
|
10.58 |
|
(0.2 |
) |
% |
|
10.16 |
|
10.38 |
|
(2.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
3,957 |
|
3,209 |
|
23.3 |
|
% |
|
7,647 |
|
6,183 |
|
23.7 |
|
% |
|
Available
seat miles (millions) |
|
4,762 |
|
3,823 |
|
24.6 |
|
% |
|
9,331 |
|
7,471 |
|
24.9 |
|
% |
|
Passenger
load factor (percent) |
|
83.1 |
|
83.9 |
|
(0.8 |
) |
pts |
|
82.0 |
|
82.8 |
|
(0.8 |
) |
pts |
|
Yield
(cents) |
|
9.75 |
|
9.52 |
|
2.4 |
|
% |
|
9.78 |
|
9.60 |
|
1.9 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
8.10 |
|
7.99 |
|
1.3 |
|
% |
|
8.01 |
|
7.94 |
|
0.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
20,398 |
|
18,509 |
|
10.2 |
|
% |
|
36,078 |
|
34,339 |
|
5.1 |
|
% |
|
Available
seat miles (millions) |
|
25,428 |
|
23,969 |
|
6.1 |
|
% |
|
46,186 |
|
44,990 |
|
2.7 |
|
% |
|
Passenger
load factor (percent) |
|
80.2 |
|
77.2 |
|
3.0 |
|
pts |
|
78.1 |
|
76.3 |
|
1.8 |
|
pts |
|
Yield
(cents) |
|
13.00 |
|
12.83 |
|
1.3 |
|
% |
|
13.12 |
|
13.01 |
|
0.9 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
10.42 |
|
9.90 |
|
5.3 |
|
% |
|
10.25 |
|
9.93 |
|
3.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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”) sometimes
uses financial measures that are derived from the consolidated
financial statements but that are not presented in accordance with
GAAP to understand and evaluate its current operating performance
and to allow for period-to-period comparisons. The Company believes
these non-GAAP financial measures may also provide useful
information to investors and others. These non-GAAP measures may
not be comparable to similarly titled non-GAAP measures of other
companies, and should be considered in addition to and not as a
substitute for or superior to, any measure of performance, cash
flow or liquidity prepared in accordance with GAAP. The Company is
providing a reconciliation of reported non-GAAP financial measures
to their comparable financial measures on a GAAP basis. The tables
below present the reconciliations of the following GAAP measures to
their non-GAAP measure: - Pre-Tax Income (GAAP measure) to Pre-Tax
Income Excluding Special Items (non-GAAP measure) - Pre-Tax Margin
(GAAP measure) to Pre-Tax Margin Excluding Special Items (non-GAAP
measure) - Net Income (GAAP measure) to Net Income Excluding
Special Items (non-GAAP measure) - Basic and Diluted Earnings Per
Share (GAAP measure) to Basic and Diluted Earnings Per Share
Excluding Special Items (non-GAAP measure) - Operating Income (GAAP
measure) to Operating Income Excluding Special Items (non-GAAP
measure) Management uses these non-GAAP financial measures to
evaluate the Company's current operating performance and to allow
for period-to-period comparisons. As special items may vary from
period-to-period in nature and amount, the adjustment to exclude
special items allows management an additional tool to better
understand the Company’s core operating performance. Additionally,
the tables below present the reconciliations of mainline, regional
and total operating costs (GAAP measure) to mainline, regional and
total operating costs excluding special items and fuel (non-GAAP
measure). Management uses mainline, regional and total operating
costs excluding special items and fuel to evaluate the Company's
current operating performance and for period-to-period comparisons.
The price of fuel, over which the Company has no control, impacts
the comparability of period-to-period financial performance. The
adjustment to exclude aircraft fuel and special items allows
management an additional tool to better understand and analyze the
Company’s non-fuel costs and core operating performance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
Percent Change |
|
6 Months Ended June 30, |
|
Percent Change |
|
|
|
Reconciliation of Pre-Tax Income Excluding Special
Items |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income as reported |
|
$ |
1,291 |
|
|
$ |
1,493 |
|
|
|
|
$ |
1,656 |
|
|
$ |
2,610 |
|
|
|
|
|
|
Pre-tax special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
202 |
|
|
|
62 |
|
|
|
|
|
320 |
|
|
|
161 |
|
|
|
|
|
|
Regional
operating special items, net |
|
|
1 |
|
|
|
3 |
|
|
|
|
|
4 |
|
|
|
8 |
|
|
|
|
|
|
Nonoperating special items, net (2) |
|
|
2 |
|
|
|
36 |
|
|
|
|
|
7 |
|
|
|
36 |
|
|
|
|
|
|
Total pre-tax special
items |
|
|
205 |
|
|
|
101 |
|
|
|
|
|
331 |
|
|
|
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,496 |
|
|
$ |
1,594 |
|
|
-6 |
% |
|
$ |
1,987 |
|
|
$ |
2,815 |
|
|
-29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income as
reported |
|
$ |
1,291 |
|
|
$ |
1,493 |
|
|
|
|
$ |
1,656 |
|
|
$ |
2,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
11,105 |
|
|
$ |
10,363 |
|
|
|
|
$ |
20,729 |
|
|
$ |
19,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin |
|
|
11.6 |
% |
|
|
14.4 |
% |
|
|
|
|
8.0 |
% |
|
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,496 |
|
|
$ |
1,594 |
|
|
|
|
$ |
1,987 |
|
|
$ |
2,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
11,105 |
|
|
$ |
10,363 |
|
|
|
|
$ |
20,729 |
|
|
$ |
19,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin
excluding special items |
|
|
13.5 |
% |
|
|
15.4 |
% |
|
|
|
|
9.6 |
% |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
803 |
|
|
$ |
950 |
|
|
|
|
$ |
1,037 |
|
|
$ |
1,650 |
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
pre-tax special items (1) (2) |
|
|
205 |
|
|
|
101 |
|
|
|
|
|
331 |
|
|
|
205 |
|
|
|
|
|
|
Net tax
effect of special items |
|
|
(64 |
) |
|
|
(50 |
) |
|
|
|
|
(116 |
) |
|
|
(89 |
) |
|
|
|
|
|
Net income excluding
special items |
|
$ |
944 |
|
|
$ |
1,001 |
|
|
-6 |
% |
|
$ |
1,252 |
|
|
$ |
1,766 |
|
|
-29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings Per Share
Excluding |
|
3 Months Ended June 30, |
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
Special Items |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions, except per share amounts) |
|
|
|
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
special items |
|
$ |
944 |
|
|
$ |
1,001 |
|
|
|
|
$ |
1,252 |
|
|
$ |
1,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
490,818 |
|
|
|
563,000 |
|
|
|
|
|
497,360 |
|
|
|
584,622 |
|
|
|
|
|
|
Diluted |
|
|
492,965 |
|
|
|
566,040 |
|
|
|
|
|
500,381 |
|
|
|
588,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.92 |
|
|
$ |
1.78 |
|
|
|
|
$ |
2.52 |
|
|
$ |
3.02 |
|
|
|
|
|
|
Diluted |
|
$ |
1.92 |
|
|
$ |
1.77 |
|
|
|
|
$ |
2.50 |
|
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as reported |
|
$ |
1,535 |
|
|
$ |
1,751 |
|
|
|
|
$ |
2,136 |
|
|
$ |
3,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
202 |
|
|
|
62 |
|
|
|
|
|
320 |
|
|
|
161 |
|
|
|
|
|
|
Regional
operating special items, net |
|
|
1 |
|
|
|
3 |
|
|
|
|
|
4 |
|
|
|
8 |
|
|
|
|
|
|
Operating income
excluding special items |
|
$ |
1,738 |
|
|
$ |
1,816 |
|
|
|
|
$ |
2,460 |
|
|
$ |
3,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended June 30, |
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
Items and Fuel - Mainline only |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
9,570 |
|
|
$ |
8,612 |
|
|
|
|
$ |
18,593 |
|
|
$ |
16,711 |
|
|
|
|
|
|
Less regional expenses
as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
(329 |
) |
|
|
(279 |
) |
|
|
|
|
(648 |
) |
|
|
(498 |
) |
|
|
|
|
|
Other |
|
|
(1,291 |
) |
|
|
(1,239 |
) |
|
|
|
|
(2,546 |
) |
|
|
(2,452 |
) |
|
|
|
|
|
Total mainline
operating expenses as reported |
|
|
7,950 |
|
|
|
7,094 |
|
|
|
|
|
15,399 |
|
|
|
13,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(202 |
) |
|
|
(62 |
) |
|
|
|
|
(320 |
) |
|
|
(161 |
) |
|
|
|
|
|
Mainline operating
expenses, excluding special items |
|
|
7,748 |
|
|
|
7,032 |
|
|
|
|
|
15,079 |
|
|
|
13,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
|
(1,510 |
) |
|
|
(1,314 |
) |
|
|
|
|
(2,912 |
) |
|
|
(2,343 |
) |
|
|
|
|
|
Mainline operating
expenses, excluding special items and fuel |
|
$ |
6,238 |
|
|
$ |
5,718 |
|
|
|
|
$ |
12,167 |
|
|
$ |
11,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM as reported |
|
|
12.51 |
|
|
|
11.32 |
|
|
|
|
|
12.82 |
|
|
|
11.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net per ASM (1) |
|
|
(0.32 |
) |
|
|
(0.10 |
) |
|
|
|
|
(0.27 |
) |
|
|
(0.13 |
) |
|
|
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
12.20 |
|
|
|
11.22 |
|
|
|
|
|
12.56 |
|
|
|
11.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM |
|
|
(2.38 |
) |
|
|
(2.10 |
) |
|
|
|
|
(2.42 |
) |
|
|
(1.95 |
) |
|
|
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.82 |
|
|
|
9.12 |
|
|
|
|
|
10.13 |
|
|
|
9.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses as reported |
|
$ |
1,620 |
|
|
$ |
1,518 |
|
|
|
|
$ |
3,194 |
|
|
$ |
2,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
|
|
(4 |
) |
|
|
(8 |
) |
|
|
|
|
|
Regional operating
expenses, excluding special items |
|
|
1,619 |
|
|
|
1,515 |
|
|
|
|
|
3,190 |
|
|
|
2,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
|
(329 |
) |
|
|
(279 |
) |
|
|
|
|
(648 |
) |
|
|
(498 |
) |
|
|
|
|
|
Regional operating
expenses, excluding special items and fuel |
|
$ |
1,290 |
|
|
$ |
1,236 |
|
|
|
|
$ |
2,542 |
|
|
$ |
2,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM as reported |
|
|
19.71 |
|
|
|
18.78 |
|
|
|
|
|
19.96 |
|
|
|
18.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
|
|
(0.03 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
Regional operating
expenses per ASM, excluding special items |
|
|
19.69 |
|
|
|
18.75 |
|
|
|
|
|
19.94 |
|
|
|
18.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM |
|
|
(4.01 |
) |
|
|
(3.46 |
) |
|
|
|
|
(4.05 |
) |
|
|
(3.20 |
) |
|
|
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel |
|
|
15.69 |
|
|
|
15.29 |
|
|
|
|
|
15.89 |
|
|
|
15.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
9,570 |
|
|
$ |
8,612 |
|
|
|
|
$ |
18,593 |
|
|
$ |
16,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(202 |
) |
|
|
(62 |
) |
|
|
|
|
(320 |
) |
|
|
(161 |
) |
|
|
|
|
|
Regional
operating special items, net |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
|
|
(4 |
) |
|
|
(8 |
) |
|
|
|
|
|
Total operating
expenses, excluding special items |
|
|
9,367 |
|
|
|
8,547 |
|
|
|
|
|
18,269 |
|
|
|
16,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline |
|
|
(1,510 |
) |
|
|
(1,314 |
) |
|
|
|
|
(2,912 |
) |
|
|
(2,343 |
) |
|
|
|
|
|
Aircraft
fuel and related taxes - regional |
|
|
(329 |
) |
|
|
(279 |
) |
|
|
|
|
(648 |
) |
|
|
(498 |
) |
|
|
|
|
|
Total operating
expenses, excluding special items and fuel |
|
$ |
7,528 |
|
|
$ |
6,954 |
|
|
|
|
$ |
14,709 |
|
|
$ |
13,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM as reported |
|
|
13.34 |
|
|
|
12.17 |
|
|
|
|
|
13.66 |
|
|
|
12.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (1) |
|
|
(0.28 |
) |
|
|
(0.09 |
) |
|
|
|
|
(0.24 |
) |
|
|
(0.12 |
) |
|
|
|
|
|
Regional
operating special items, net |
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
13.06 |
|
|
|
12.08 |
|
|
|
|
|
13.42 |
|
|
|
12.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline |
|
|
(2.10 |
) |
|
|
(1.86 |
) |
|
|
|
|
(2.14 |
) |
|
|
(1.73 |
) |
|
|
|
|
|
Aircraft
fuel and related taxes - regional |
|
|
(0.46 |
) |
|
|
(0.39 |
) |
|
|
|
|
(0.48 |
) |
|
|
(0.37 |
) |
|
|
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
10.49 |
|
|
|
9.83 |
|
|
|
|
|
10.81 |
|
|
|
10.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
The 2017 second quarter mainline operating special
items totaled a net charge of $202 million, which principally
included $68 million of merger integration expenses, $48 million of
fleet restructuring expenses, $45 million of labor contract
expenses principally due to one-time charges to adjust the vacation
accruals for pilots and flight attendants as a result of the
mid-contract pay rate adjustments and a $38 million net charge
resulting from fair value adjustments to bankruptcy obligations.
The 2017 six month period mainline operating special items totaled
a net charge of $320 million, which principally included $130
million of merger integration expenses, $111 million of fleet
restructuring expenses, $45 million for the labor contract expenses
described above and a $20 million net charge resulting from fair
value adjustments to bankruptcy obligations. The 2016 second
quarter mainline operating special items totaled a net charge of
$62 million, which principally included $97 million of merger
integration expenses and $15 million of fleet restructuring
expenses, offset in part by a $56 million net credit resulting from
fair value adjustments to bankruptcy obligations. The 2016 six
month period mainline operating special items totaled a net charge
of $161 million, which principally included $201 million of merger
integration expenses and $41 million of fleet restructuring
expenses, offset in part by a $61 million net credit resulting from
fair value adjustments to bankruptcy obligations. Merger
integration expenses included costs related to information
technology, professional fees, re-branding of aircraft and airport
facilities and training. Additionally, the 2016 period also
included merger integration expenses related to alignment of labor
union contracts, re-branded uniforms, relocation and severance.
Fleet restructuring expenses driven by the merger principally
included the acceleration of aircraft depreciation and impairments
for aircraft grounded or expected to be grounded earlier than
planned. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
Nonoperating special charges in the 2017 periods
primarily consisted of debt issuance and extinguishment costs
associated with term loan refinancings. Additionally, the 2016
periods included costs associated with a bond refinancing. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines Group
Inc. |
|
|
Condensed Consolidated Balance
Sheets |
|
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
|
|
(unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash |
$ |
386 |
|
|
$ |
322 |
|
|
|
Short-term investments |
|
6,500 |
|
|
|
6,037 |
|
|
|
Restricted cash and short-term investments |
|
554 |
|
|
|
638 |
|
|
|
Accounts
receivable, net |
|
1,543 |
|
|
|
1,594 |
|
|
|
Aircraft
fuel, spare parts and supplies, net |
|
1,206 |
|
|
|
1,094 |
|
|
|
Prepaid
expenses and other |
|
827 |
|
|
|
639 |
|
|
|
Total
current assets |
|
11,016 |
|
|
|
10,324 |
|
|
|
|
|
|
|
|
|
Operating property and
equipment |
|
|
|
|
|
Flight
equipment |
|
39,329 |
|
|
|
37,028 |
|
|
|
Ground
property and equipment |
|
7,580 |
|
|
|
7,116 |
|
|
|
Equipment
purchase deposits |
|
1,212 |
|
|
|
1,209 |
|
|
|
Total
property and equipment, at cost |
|
48,121 |
|
|
|
45,353 |
|
|
|
Less
accumulated depreciation and amortization |
|
(15,128 |
) |
|
|
(14,194 |
) |
|
|
Total
property and equipment, net |
|
32,993 |
|
|
|
31,159 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
|
|
Intangibles, net |
|
2,224 |
|
|
|
2,173 |
|
|
|
Deferred
tax asset |
|
905 |
|
|
|
1,498 |
|
|
|
Other
assets |
|
2,107 |
|
|
|
2,029 |
|
|
|
Total
other assets |
|
9,327 |
|
|
|
9,791 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
53,336 |
|
|
$ |
51,274 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Current
maturities of long-term debt and capital leases |
$ |
2,334 |
|
|
$ |
1,855 |
|
|
|
Accounts
payable |
|
1,924 |
|
|
|
1,592 |
|
|
|
Accrued
salaries and wages |
|
1,295 |
|
|
|
1,516 |
|
|
|
Air
traffic liability |
|
5,222 |
|
|
|
3,912 |
|
|
|
Loyalty
program liability |
|
3,014 |
|
|
|
2,789 |
|
|
|
Other
accrued liabilities |
|
2,323 |
|
|
|
2,208 |
|
|
|
Total
current liabilities |
|
16,112 |
|
|
|
13,872 |
|
|
|
|
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
|
|
Long-term
debt and capital leases, net of current maturities |
|
22,525 |
|
|
|
22,489 |
|
|
|
Pension
and postretirement benefits |
|
7,500 |
|
|
|
7,842 |
|
|
|
Other
liabilities |
|
3,484 |
|
|
|
3,286 |
|
|
|
Total
noncurrent liabilities |
|
33,509 |
|
|
|
33,617 |
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Common
stock |
|
5 |
|
|
|
5 |
|
|
|
Additional paid-in capital |
|
6,245 |
|
|
|
7,223 |
|
|
|
Accumulated other comprehensive loss |
|
(5,112 |
) |
|
|
(5,083 |
) |
|
|
Retained
earnings |
|
2,577 |
|
|
|
1,640 |
|
|
|
Total
stockholders' equity |
|
3,715 |
|
|
|
3,785 |
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
53,336 |
|
|
$ |
51,274 |
|
|
|
|
|
|
|
|
|
Corporate Communications
817-967-1577
mediarelations@aa.com
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