American Airlines Group Inc. (NASDAQ:AAL) today reported its
third-quarter 2017 results, including these highlights:
- Recorded a third-quarter 2017 pre-tax profit of $1.0
billion, or $1.1 billion excluding net special items,1 and net
profit of $624 million, or $692 million excluding net special
items
- Reported third-quarter earnings of $1.28 per diluted
share, or $1.42 per diluted share excluding net special
items
- Reported a 2.7 percent increase in total revenue, to
$10.9 billion, and a 1.1 percent increase in total revenue per
available seat mile (TRASM) for the third quarter
- Returned $411 million to stockholders in the third
quarter through the repurchase of 7.7 million shares for $362
million and dividend payments of $49 million
Pre-tax earnings excluding net special items for the third
quarter of 2017 were $1.1 billion, a $369 million decrease from the
third quarter of 2016. During the third quarter, the company’s
operations were affected by Hurricanes Harvey, Irma and Maria,
causing more than 8,000 flight cancellations, and reducing pre-tax
earnings by an estimated $75 million.
“Despite the significant operational challenges posed by three
hurricanes, our team delivered solid financial results,” said
Chairman and CEO Doug Parker. “The hurricane response highlighted
the humanity and professionalism of the American team, and our
industry as a whole.”
“We especially want to acknowledge the burden placed on our team
members in Puerto Rico and throughout the Caribbean. The generous
spirit of the American Airlines team was on full display as team
members in Miami, Chicago and elsewhere packed meals and care
packages for our colleagues and our customers in Puerto Rico. We
also capped fares for customers traveling to and from the regions
hit by these storms,” Parker said.
Revenue and Expenses
|
GAAP |
|
Non-GAAP1 |
|
3Q17 |
3Q16 |
|
3Q17 |
3Q16 |
|
|
|
|
|
|
Total operating revenues ($ mil) |
$ |
10,878 |
|
$ |
10,594 |
|
|
$ |
10,878 |
|
$ |
10,594 |
|
Total operating expenses ($ mil) |
|
9,646 |
|
|
9,163 |
|
|
|
9,539 |
|
|
8,869 |
|
Operating income ($ mil) |
|
1,232 |
|
|
1,431 |
|
|
|
1,339 |
|
|
1,725 |
|
|
|
|
|
|
|
Pre-tax income ($ mil) |
|
1,004 |
|
|
1,189 |
|
|
|
1,114 |
|
|
1,483 |
|
Pre-tax margin |
|
9.2 |
% |
|
11.2 |
% |
|
|
10.2 |
% |
|
14.0 |
% |
|
|
|
|
|
|
Net income ($ mil) |
|
624 |
|
|
737 |
|
|
|
692 |
|
|
933 |
|
|
|
|
|
|
|
Earnings per diluted share |
$ |
1.28 |
|
$ |
1.40 |
|
|
$ |
1.42 |
|
$ |
1.76 |
|
Continued strong demand for air travel and improving yields
drove a 2.7 percent year-over-year increase in total revenue, to
$10.9 billion. For the first time since the second quarter of 2014,
yield grew in every geographic region, with notable strength in
Latin America. Cargo revenue was up 17.0 percent to $200 million
due to a 19.2 percent increase in cargo ton miles. Other revenue
was up 2.2 percent to $1.3 billion. Third-quarter TRASM increased
by 1.1 percent on a 1.6 percent increase in total available seat
miles.
Total third-quarter operating expenses were $9.6 billion, up 5.3
percent year-over-year due primarily to a 13.3 percent increase in
consolidated fuel expense and an 8.0 percent increase in salaries
and benefits resulting from the company’s investments in its team
members. Total third-quarter cost per available seat mile (CASM)
was 13.20 cents, up 3.6 percent. Excluding fuel and special items,
total CASM was 10.43 cents, up 4.5 percent.
“We are playing the long game at American to create value in an
industry that has been fundamentally transformed,” said Parker.
Strategic Objectives
At American’s Media & Investor Day last month, the company
laid out four long-term strategic objectives: Build a World-Class
Product, Drive Efficiencies, Make Culture a Competitive Advantage,
and Think Forward, Lead Forward.
Build a World-Class Product
American continues to make significant investments in the
premium travel experience. In August, the company opened a new
Admirals Club lounge in Terminal 5 at Los Angeles International
Airport, and in September, the company opened a new Flagship Lounge
at Chicago O’Hare International Airport. American plans to open new
Flagship Lounges with Flagship First Dining in Miami and Los
Angeles later this quarter.
Demand for American’s highly-differentiated Premium Economy
travel experience remains high. Offered on international flights,
Premium Economy comes with a wider seat, more legroom, an amenity
kit, and enhanced meal choices. American is pleased with the
customer adoption of this product as it generates an average
premium of more than $400 each way over Main Cabin fares. The
company’s fleet now has Premium Economy seats on 27 of its widebody
aircraft, with plans to retrofit most of its remaining widebodies
by the end of 2018.
In early September, American expanded its Basic Economy product
throughout the continental United States. Basic Economy allows
American to compete with ultra-low cost carriers while still
offering a better product. Initial results of this new product’s
rollout continue to be consistent with management’s expectations,
with approximately half of American Airlines customers buying up to
Main Cabin when given the option between that and Basic
Economy.
“Continued product differentiation and a comprehensive network
are just two of the ways American is setting itself apart. And we
know we can do more. We have identified nearly $3 billion of
revenue opportunities through 2021, including product segmentation,
co-branded partnerships, and harmonizing our seating configurations
across the fleet,” said American Airlines President Robert
Isom.
Drive Efficiencies
As part of the company’s ongoing fleet renewal program, during
the third quarter, American invested more than $900 million in 13
new mainline aircraft and three regional aircraft, including taking
delivery of its first Boeing 737 MAX aircraft. These new, larger
and more fuel efficient aircraft continue American’s fleet
transformation and will replace aircraft that are expected to leave
the fleet. In total, the company has invested more than $18 billion
in new aircraft since the merger, giving it the youngest fleet of
its network peers.
“We are focused on driving efficiencies and maximizing value for
our investors. As we plan for the future, we have identified more
than 400 efficiency-related projects which we estimate will provide
$1 billion of benefit over the next four years. Examples include
fuel initiatives, flight and route planning, improved schedule
seasonality, and using our airport assets more productively,” said
Chief Financial Officer Derek Kerr.
Make Culture a Competitive Advantage
Making culture a competitive advantage starts with leadership
that cares for frontline team members. During the quarter, American
expanded its Lead the Experience leadership training beyond
corporate officers, and will expand this training further next
year. In addition, American continues to roll out service training
to frontline team members and anticipates 35,000 airport and
reservation team members will have received this training by the
end of this year, with plans to roll this training out further in
2018. Earlier this week, the company launched its first employee
survey in well over a decade, which will provide more information
to support frontline team members.
"We are building an environment where our leaders
enthusiastically embrace the responsibility of caring for and
inspiring our frontline team members. This environment includes a
new technology platform for all team member data, development and
training for our leaders, and investments in our team,” said Elise
Eberwein, Executive Vice President of People and
Communications.
Think Forward, Lead Forward
American has expanded the use of self-service technology during
irregular operations, which enables customers to rebook on
alternative flights and arrange for delivery of delayed bags from
the convenience of a mobile device. This new technology gives
customers more accurate, real-time information and options that
work for them during difficult weather situations. This automation
also frees up time for the company’s customer service team members
to solve more complex issues.
“With the pace at which the world moves today, we know our
technology solutions have to come faster, and they have to be
adaptable across a variety of devices, including
on-board handhelds, tablets, desktops and personal mobile
devices. We are bringing more of our systems into the
cloud environment, which enables us to deliver more, and finish
projects faster,” said Maya Leibman, Chief Information Officer.
“All of our work comes back to making it easier for our team
members to do their jobs, and making it easier for our customers to
fly with American, and we are making significant improvements in
both of these areas.”
Hurricane Response
American Airlines team members have worked together to help the
people of San Juan, Puerto Rico and other affected parts of the
Caribbean. American was the first commercial airline to restore
service to San Juan after Hurricane Maria. American and its team
members have delivered more than 2.5 million pounds of relief
supplies and raised almost $2 million for the American Red Cross.
In addition, team members in Chicago, New York, Fort Worth and
Miami volunteered to pack more than 100,000 meals for hurricane
victims, as well as 2,000 kits for military men and women currently
serving in San Juan.
Over recent weeks, Tech Ops team members sent and served 600 hot
meals for colleagues in San Juan. American Airlines team members
have contributed more than $350,000, which American has matched, to
the American Airlines Family Fund during the recent hurricane
season. The Family Fund provides monetary relief to team members
facing catastrophic and life-altering emergencies.
Capital Investments and Shareholder Returns
Since mid-2014, American has returned more than $11.1 billion to
stockholders primarily through share repurchases and dividends, and
reduced its share count by 37 percent to 480.0 million shares. As
of September 30, 2017, the company had approximately $677 million
remaining of its $2.0 billion share repurchase authority.2
The company declared a dividend of $0.10 per share, to be paid
on November 27, 2017, to stockholders of record as of November 13,
2017.
Guidance and Investor Update
American expects its fourth-quarter TRASM to increase
approximately 2.5 to 4.5 percent year-over-year, which reflects
continued improvement in demand for both business and leisure
travel. The company also expects its fourth-quarter pre-tax margin
excluding special items to be between 4.5 and 6.5 percent.3
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 9:00 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 November 26.
Notes
- In the third quarter, the company recognized $110 million in
net special items before the effect of income taxes, principally
consisting of merger integration expenses and fleet restructuring
expenses, offset in part by a net credit resulting from fair value
adjustments to bankruptcy obligations. 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.
- 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.
- 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.
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 September 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines Group Inc. |
|
Condensed Consolidated
Statements of Operations |
|
(In millions, except share and per share
amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended September 30, |
|
Percent |
|
9 Months Ended September 30, |
|
Percent |
|
|
|
2017 |
|
|
2016 |
|
|
Change |
|
2017 |
|
|
2016 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline
passenger |
|
$ |
7,628 |
|
|
$ |
7,419 |
|
|
2.8 |
|
|
$ |
21,981 |
|
|
$ |
21,192 |
|
|
3.7 |
|
|
Regional
passenger |
|
|
1,749 |
|
|
|
1,731 |
|
|
1.1 |
|
|
|
5,133 |
|
|
|
5,040 |
|
|
1.8 |
|
|
Cargo |
|
|
200 |
|
|
|
171 |
|
|
17.0 |
|
|
|
568 |
|
|
|
506 |
|
|
12.2 |
|
|
Other |
|
|
1,301 |
|
|
|
1,273 |
|
|
2.2 |
|
|
|
3,924 |
|
|
|
3,653 |
|
|
7.4 |
|
|
Total operating
revenues |
|
|
10,878 |
|
|
|
10,594 |
|
|
2.7 |
|
|
|
31,606 |
|
|
|
30,391 |
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
|
1,570 |
|
|
|
1,393 |
|
|
12.7 |
|
|
|
4,481 |
|
|
|
3,736 |
|
|
19.9 |
|
|
Salaries, wages
and benefits |
|
|
2,995 |
|
|
|
2,772 |
|
|
8.0 |
|
|
|
8,824 |
|
|
|
8,094 |
|
|
9.0 |
|
|
Regional
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
352 |
|
|
|
303 |
|
|
16.1 |
|
|
|
999 |
|
|
|
801 |
|
|
24.7 |
|
|
|
Other |
|
|
1,302 |
|
|
|
1,235 |
|
|
5.4 |
|
|
|
3,849 |
|
|
|
3,687 |
|
|
4.4 |
|
|
Maintenance,
materials and repairs |
|
|
487 |
|
|
|
481 |
|
|
1.4 |
|
|
|
1,474 |
|
|
|
1,352 |
|
|
9.1 |
|
|
Other rent and
landing fees |
|
|
471 |
|
|
|
463 |
|
|
1.7 |
|
|
|
1,363 |
|
|
|
1,342 |
|
|
1.6 |
|
|
Aircraft
rent |
|
|
304 |
|
|
|
299 |
|
|
1.5 |
|
|
|
892 |
|
|
|
908 |
|
|
(1.7 |
) |
|
Selling
expenses |
|
|
400 |
|
|
|
347 |
|
|
15.1 |
|
|
|
1,094 |
|
|
|
990 |
|
|
10.5 |
|
|
Depreciation and
amortization |
|
|
433 |
|
|
|
399 |
|
|
8.6 |
|
|
|
1,255 |
|
|
|
1,128 |
|
|
11.3 |
|
|
Special items,
net |
|
|
112 |
|
|
|
289 |
|
|
(61.2 |
) |
|
|
432 |
|
|
|
450 |
|
|
(3.8 |
) |
|
Other |
|
|
1,220 |
|
|
|
1,182 |
|
|
3.3 |
|
|
|
3,575 |
|
|
|
3,386 |
|
|
5.6 |
|
|
Total operating
expenses |
|
|
9,646 |
|
|
|
9,163 |
|
|
5.3 |
|
|
|
28,238 |
|
|
|
25,874 |
|
|
9.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
1,232 |
|
|
|
1,431 |
|
|
(13.9 |
) |
|
|
3,368 |
|
|
|
4,517 |
|
|
(25.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
25 |
|
|
|
16 |
|
|
51.4 |
|
|
|
70 |
|
|
|
45 |
|
|
55.4 |
|
|
Interest
expense, net |
|
|
(266 |
) |
|
|
(250 |
) |
|
6.6 |
|
|
|
(787 |
) |
|
|
(738 |
) |
|
6.6 |
|
|
Other, net |
|
|
13 |
|
|
|
(8 |
) |
|
nm |
|
|
8 |
|
|
|
(25 |
) |
|
nm |
|
Total
nonoperating expense, net |
|
|
(228 |
) |
|
|
(242 |
) |
|
(5.4 |
) |
|
|
(709 |
) |
|
|
(718 |
) |
|
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
1,004 |
|
|
|
1,189 |
|
|
(15.6 |
) |
|
|
2,659 |
|
|
|
3,799 |
|
|
(30.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
|
380 |
|
|
|
452 |
|
|
(16.0 |
) |
|
|
998 |
|
|
|
1,412 |
|
|
(29.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
624 |
|
|
$ |
737 |
|
|
(15.4 |
) |
|
$ |
1,661 |
|
|
$ |
2,387 |
|
|
(30.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.29 |
|
|
$ |
1.40 |
|
|
|
|
$ |
3.37 |
|
|
$ |
4.23 |
|
|
|
|
|
Diluted |
|
$ |
1.28 |
|
|
$ |
1.40 |
|
|
|
|
$ |
3.35 |
|
|
$ |
4.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
484,772 |
|
|
|
525,415 |
|
|
|
|
|
493,164 |
|
|
|
564,886 |
|
|
|
|
|
Diluted |
|
|
486,625 |
|
|
|
528,510 |
|
|
|
|
|
495,796 |
|
|
|
568,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent change may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines Group Inc. |
|
Consolidated Operating
Statistics |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended September 30, |
|
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
54,012 |
|
53,472 |
|
1.0 |
|
% |
|
152,400 |
|
151,619 |
|
0.5 |
|
% |
|
Available seat miles
(ASM) (millions) |
|
64,582 |
|
63,751 |
|
1.3 |
|
% |
|
184,665 |
|
183,985 |
|
0.4 |
|
% |
|
Passenger load factor
(percent) |
|
83.6 |
|
83.9 |
|
(0.3 |
) |
pts |
|
82.5 |
|
82.4 |
|
0.1 |
|
pts |
|
Yield (cents) |
|
14.12 |
|
13.87 |
|
1.8 |
|
% |
|
14.42 |
|
13.98 |
|
3.2 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
11.81 |
|
11.64 |
|
1.5 |
|
% |
|
11.90 |
|
11.52 |
|
3.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
37,365 |
|
37,584 |
|
(0.6 |
) |
% |
|
108,886 |
|
109,830 |
|
(0.9 |
) |
% |
|
Departures
(thousands) |
|
275 |
|
282 |
|
(2.4 |
) |
% |
|
816 |
|
837 |
|
(2.5 |
) |
% |
|
Aircraft at end of
period |
|
947 |
|
922 |
|
2.7 |
|
% |
|
947 |
|
922 |
|
2.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands) |
|
893 |
|
905 |
|
(1.3 |
) |
% |
|
2,608 |
|
2,650 |
|
(1.6 |
) |
% |
|
Average stage length
(miles) |
|
1,278 |
|
1,258 |
|
1.6 |
|
% |
|
1,245 |
|
1,235 |
|
0.8 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
947 |
|
953 |
|
(0.6 |
) |
% |
|
2,713 |
|
2,739 |
|
(0.9 |
) |
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.66 |
|
1.46 |
|
13.4 |
|
% |
|
1.65 |
|
1.36 |
|
21.1 |
|
% |
|
Full-time equivalent
employees at end of period |
|
105,000 |
|
101,200 |
|
3.8 |
|
% |
|
105,000 |
|
101,200 |
|
3.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
12.37 |
|
11.96 |
|
3.5 |
|
% |
|
12.67 |
|
11.62 |
|
9.0 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
12.20 |
|
11.51 |
|
6.0 |
|
% |
|
12.43 |
|
11.38 |
|
9.3 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
9.77 |
|
9.32 |
|
4.8 |
|
% |
|
10.01 |
|
9.35 |
|
7.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
6,459 |
|
6,447 |
|
0.2 |
|
% |
|
18,619 |
|
18,406 |
|
1.2 |
|
% |
|
Available seat miles
(millions) |
|
8,471 |
|
8,160 |
|
3.8 |
|
% |
|
24,471 |
|
23,741 |
|
3.1 |
|
% |
|
Passenger load factor
(percent) |
|
76.3 |
|
79.0 |
|
(2.7 |
) |
pts |
|
76.1 |
|
77.5 |
|
(1.4 |
) |
pts |
|
Yield (cents) |
|
27.08 |
|
26.85 |
|
0.9 |
|
% |
|
27.57 |
|
27.38 |
|
0.7 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
20.65 |
|
21.21 |
|
(2.7 |
) |
% |
|
20.97 |
|
21.23 |
|
(1.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
14,073 |
|
14,288 |
|
(1.5 |
) |
% |
|
40,727 |
|
40,908 |
|
(0.4 |
) |
% |
|
Aircraft at end of
period |
|
611 |
|
599 |
|
2.0 |
|
% |
|
611 |
|
599 |
|
2.0 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
201 |
|
196 |
|
2.6 |
|
% |
|
578 |
|
565 |
|
2.4 |
|
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.75 |
|
1.55 |
|
13.1 |
|
% |
|
1.73 |
|
1.42 |
|
21.8 |
|
% |
|
Full-time equivalent
employees at end of period (B) |
|
22,600 |
|
20,600 |
|
9.7 |
|
% |
|
22,600 |
|
20,600 |
|
9.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
19.53 |
|
18.85 |
|
3.6 |
|
% |
|
19.81 |
|
18.91 |
|
4.8 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
19.59 |
|
18.79 |
|
4.3 |
|
% |
|
19.82 |
|
18.85 |
|
5.1 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
15.44 |
|
15.08 |
|
2.4 |
|
% |
|
15.73 |
|
15.48 |
|
1.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
60,471 |
|
59,919 |
|
0.9 |
|
% |
|
171,019 |
|
170,025 |
|
0.6 |
|
% |
|
Available seat miles
(millions) |
|
73,053 |
|
71,911 |
|
1.6 |
|
% |
|
209,136 |
|
207,726 |
|
0.7 |
|
% |
|
Cargo ton miles
(millions) |
|
716 |
|
601 |
|
19.2 |
|
% |
|
2,036 |
|
1,754 |
|
16.1 |
|
% |
|
Passenger load factor
(percent) |
|
82.8 |
|
83.3 |
|
(0.5 |
) |
pts |
|
81.8 |
|
81.9 |
|
(0.1 |
) |
pts |
|
Yield (cents) |
|
15.51 |
|
15.27 |
|
1.6 |
|
% |
|
15.85 |
|
15.43 |
|
2.8 |
|
% |
|
Passenger revenue per
ASM (cents) |
|
12.84 |
|
12.72 |
|
0.9 |
|
% |
|
12.96 |
|
12.63 |
|
2.7 |
|
% |
|
Total revenue per ASM
(cents) |
|
14.89 |
|
14.73 |
|
1.1 |
|
% |
|
15.11 |
|
14.63 |
|
3.3 |
|
% |
|
Cargo yield per ton
mile (cents) |
|
27.89 |
|
28.42 |
|
(1.9 |
) |
% |
|
27.89 |
|
28.86 |
|
(3.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
51,438 |
|
51,872 |
|
(0.8 |
) |
% |
|
149,613 |
|
150,738 |
|
(0.7 |
) |
% |
|
Aircraft at end of
period |
|
1,558 |
|
1,521 |
|
2.4 |
|
% |
|
1,558 |
|
1,521 |
|
2.4 |
|
% |
|
Fuel consumption
(gallons in millions) |
|
1,148 |
|
1,149 |
|
- |
|
% |
|
3,291 |
|
3,304 |
|
(0.4 |
) |
% |
|
Average
aircraft fuel price including related taxes (dollars per
gallon) |
1.67 |
|
1.48 |
|
13.3 |
|
% |
|
1.67 |
|
1.37 |
|
21.2 |
|
% |
|
Full-time equivalent
employees at end of period (B) |
|
127,600 |
|
121,800 |
|
4.8 |
|
% |
|
127,600 |
|
121,800 |
|
4.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
13.20 |
|
12.74 |
|
3.6 |
|
% |
|
13.50 |
|
12.46 |
|
8.4 |
|
% |
|
Operating cost per ASM
excluding special items (cents) |
|
13.06 |
|
12.33 |
|
5.9 |
|
% |
|
13.30 |
|
12.23 |
|
8.7 |
|
% |
|
Operating cost per ASM
excluding special items and fuel (cents) |
|
10.43 |
|
9.97 |
|
4.5 |
|
% |
|
10.68 |
|
10.05 |
|
6.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Regional includes wholly owned
regional airline subsidiaries and operating results from capacity
purchase carriers. |
|
|
|
|
|
|
|
|
(B) Regional full-time equivalent
employees only include our wholly owned regional airline
subsidiaries. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Airlines Group Inc. |
|
Consolidated Revenue Statistics by
Region |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended September 30, |
|
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
|
|
2017 |
|
2016 |
|
Change |
|
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic - Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
33,032 |
|
33,487 |
|
(1.4 |
) |
% |
|
95,341 |
|
97,296 |
|
(2.0 |
) |
% |
|
Available
seat miles (ASM) (millions) |
|
38,750 |
|
39,051 |
|
(0.8 |
) |
% |
|
112,647 |
|
114,294 |
|
(1.4 |
) |
% |
|
Passenger
load factor (percent) |
|
85.2 |
|
85.8 |
|
(0.6 |
) |
pts |
|
84.6 |
|
85.1 |
|
(0.5 |
) |
pts |
|
Yield
(cents) |
|
14.52 |
|
14.36 |
|
1.1 |
|
% |
|
15.12 |
|
14.51 |
|
4.2 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
12.37 |
|
12.31 |
|
0.5 |
|
% |
|
12.79 |
|
12.35 |
|
3.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Consolidated - Mainline and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Regional (A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
39,491 |
|
39,934 |
|
(1.1 |
) |
% |
|
113,960 |
|
115,701 |
|
(1.5 |
) |
% |
|
Available
seat miles (millions) |
|
47,221 |
|
47,211 |
|
- |
|
% |
|
137,118 |
|
138,036 |
|
(0.7 |
) |
% |
|
Passenger
load factor (percent) |
|
83.6 |
|
84.6 |
|
(1.0 |
) |
pts |
|
83.1 |
|
83.8 |
|
(0.7 |
) |
pts |
|
Yield
(cents) |
|
16.57 |
|
16.37 |
|
1.2 |
|
% |
|
17.15 |
|
16.56 |
|
3.6 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
13.86 |
|
13.85 |
|
0.1 |
|
% |
|
14.25 |
|
13.88 |
|
2.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
7,362 |
|
7,382 |
|
(0.3 |
) |
% |
|
22,445 |
|
22,857 |
|
(1.8 |
) |
% |
|
Available
seat miles (millions) |
|
8,919 |
|
8,944 |
|
(0.3 |
) |
% |
|
28,432 |
|
28,894 |
|
(1.6 |
) |
% |
|
Passenger
load factor (percent) |
|
82.5 |
|
82.5 |
|
- |
|
pts |
|
78.9 |
|
79.1 |
|
(0.2 |
) |
pts |
|
Yield
(cents) |
|
15.12 |
|
13.97 |
|
8.2 |
|
% |
|
14.88 |
|
13.47 |
|
10.4 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
12.48 |
|
11.53 |
|
8.3 |
|
% |
|
11.74 |
|
10.66 |
|
10.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
9,728 |
|
9,027 |
|
7.8 |
|
% |
|
23,077 |
|
21,707 |
|
6.3 |
|
% |
|
Available
seat miles (millions) |
|
12,212 |
|
11,533 |
|
5.9 |
|
% |
|
29,554 |
|
29,103 |
|
1.5 |
|
% |
|
Passenger
load factor (percent) |
|
79.7 |
|
78.3 |
|
1.4 |
|
pts |
|
78.1 |
|
74.6 |
|
3.5 |
|
pts |
|
Yield
(cents) |
|
13.60 |
|
13.49 |
|
0.9 |
|
% |
|
13.37 |
|
14.01 |
|
(4.6 |
) |
% |
|
Passenger
revenue per ASM (cents) |
|
10.84 |
|
10.56 |
|
2.6 |
|
% |
|
10.44 |
|
10.45 |
|
(0.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
3,890 |
|
3,576 |
|
8.8 |
|
% |
|
11,537 |
|
9,759 |
|
18.2 |
|
% |
|
Available
seat miles (millions) |
|
4,701 |
|
4,223 |
|
11.3 |
|
% |
|
14,032 |
|
11,694 |
|
20.0 |
|
% |
|
Passenger
load factor (percent) |
|
82.7 |
|
84.7 |
|
(2.0 |
) |
pts |
|
82.2 |
|
83.5 |
|
(1.3 |
) |
pts |
|
Yield
(cents) |
|
10.20 |
|
10.13 |
|
0.7 |
|
% |
|
9.92 |
|
9.79 |
|
1.3 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
8.44 |
|
8.58 |
|
(1.6 |
) |
% |
|
8.15 |
|
8.17 |
|
(0.2 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
passenger miles (millions) |
|
20,980 |
|
19,985 |
|
5.0 |
|
% |
|
57,059 |
|
54,323 |
|
5.0 |
|
% |
|
Available
seat miles (millions) |
|
25,832 |
|
24,700 |
|
4.6 |
|
% |
|
72,018 |
|
69,691 |
|
3.3 |
|
% |
|
Passenger
load factor (percent) |
|
81.2 |
|
80.9 |
|
0.3 |
|
pts |
|
79.2 |
|
77.9 |
|
1.3 |
|
pts |
|
Yield
(cents) |
|
13.50 |
|
13.06 |
|
3.4 |
|
% |
|
13.26 |
|
13.03 |
|
1.8 |
|
% |
|
Passenger
revenue per ASM (cents) |
|
10.97 |
|
10.57 |
|
3.8 |
|
% |
|
10.51 |
|
10.15 |
|
3.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(A) Revenue statistics for all
Regional flying are included herein. |
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|
Note: Amounts may not recalculate due to
rounding. |
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|
Reconciliation of GAAP Financial Information to
Non-GAAP Financial Information |
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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. |
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|
|
|
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|
3 Months Ended September 30, |
|
PercentChange |
|
9 Months Ended September 30, |
|
PercentChange |
|
|
|
Reconciliation of Pre-Tax Income Excluding Special
Items |
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income as reported |
|
$ |
1,004 |
|
|
$ |
1,189 |
|
|
|
|
$ |
2,659 |
|
|
$ |
3,799 |
|
|
|
|
|
|
Pre-tax special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
112 |
|
|
|
289 |
|
|
|
|
|
432 |
|
|
|
450 |
|
|
|
|
|
|
Regional
operating special items, net |
|
|
(5 |
) |
|
|
5 |
|
|
|
|
|
(1 |
) |
|
|
13 |
|
|
|
|
|
|
Nonoperating
special items, net (2) |
|
|
3 |
|
|
|
- |
|
|
|
|
|
12 |
|
|
|
36 |
|
|
|
|
|
|
Total pre-tax special
items |
|
|
110 |
|
|
|
294 |
|
|
|
|
|
443 |
|
|
|
499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,114 |
|
|
$ |
1,483 |
|
|
-25 |
% |
|
$ |
3,102 |
|
|
$ |
4,298 |
|
|
-28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income as
reported |
|
$ |
1,004 |
|
|
$ |
1,189 |
|
|
|
|
$ |
2,659 |
|
|
$ |
3,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
10,878 |
|
|
$ |
10,594 |
|
|
|
|
$ |
31,606 |
|
|
$ |
30,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin |
|
|
9.2 |
% |
|
|
11.2 |
% |
|
|
|
|
8.4 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
excluding special items |
|
$ |
1,114 |
|
|
$ |
1,483 |
|
|
|
|
$ |
3,102 |
|
|
$ |
4,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues as reported |
|
$ |
10,878 |
|
|
$ |
10,594 |
|
|
|
|
$ |
31,606 |
|
|
$ |
30,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin
excluding special items |
|
|
10.2 |
% |
|
|
14.0 |
% |
|
|
|
|
9.8 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
624 |
|
|
$ |
737 |
|
|
|
|
$ |
1,661 |
|
|
$ |
2,387 |
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax
special items (1) (2) |
|
|
110 |
|
|
|
294 |
|
|
|
|
|
443 |
|
|
|
499 |
|
|
|
|
|
|
Net tax effect
of special items |
|
|
(42 |
) |
|
|
(98 |
) |
|
|
|
|
(160 |
) |
|
|
(188 |
) |
|
|
|
|
|
Net income excluding
special items |
|
$ |
692 |
|
|
$ |
933 |
|
|
-26 |
% |
|
$ |
1,944 |
|
|
$ |
2,698 |
|
|
-28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings Per Share
Excluding |
|
3 Months Ended September 30, |
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
Special Items |
|
2017 |
|
|
2016 |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions, except per share amounts) |
|
|
|
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding
special items |
|
$ |
692 |
|
|
$ |
933 |
|
|
|
|
$ |
1,944 |
|
|
$ |
2,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
484,772 |
|
|
|
525,415 |
|
|
|
|
|
493,164 |
|
|
|
564,886 |
|
|
|
|
|
|
Diluted |
|
|
486,625 |
|
|
|
528,510 |
|
|
|
|
|
495,796 |
|
|
|
568,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
excluding special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.43 |
|
|
$ |
1.77 |
|
|
|
|
$ |
3.94 |
|
|
$ |
4.78 |
|
|
|
|
|
|
Diluted |
|
$ |
1.42 |
|
|
$ |
1.76 |
|
|
|
|
$ |
3.92 |
|
|
$ |
4.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income Excluding Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as reported |
|
$ |
1,232 |
|
|
$ |
1,431 |
|
|
|
|
$ |
3,368 |
|
|
$ |
4,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
112 |
|
|
|
289 |
|
|
|
|
|
432 |
|
|
|
450 |
|
|
|
|
|
|
Regional
operating special items, net |
|
|
(5 |
) |
|
|
5 |
|
|
|
|
|
(1 |
) |
|
|
13 |
|
|
|
|
|
|
Operating income
excluding special items |
|
$ |
1,339 |
|
|
$ |
1,725 |
|
|
|
|
$ |
3,799 |
|
|
$ |
4,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended September 30, |
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
Items and Fuel - Mainline only |
|
2017 |
|
|
2016 |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
9,646 |
|
|
$ |
9,163 |
|
|
|
|
$ |
28,238 |
|
|
$ |
25,874 |
|
|
|
|
|
|
Less regional expenses
as reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
(352 |
) |
|
|
(303 |
) |
|
|
|
|
(999 |
) |
|
|
(801 |
) |
|
|
|
|
|
Other |
|
|
(1,302 |
) |
|
|
(1,235 |
) |
|
|
|
|
(3,849 |
) |
|
|
(3,687 |
) |
|
|
|
|
|
Total mainline
operating expenses as reported |
|
|
7,992 |
|
|
|
7,625 |
|
|
|
|
|
23,390 |
|
|
|
21,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(112 |
) |
|
|
(289 |
) |
|
|
|
|
(432 |
) |
|
|
(450 |
) |
|
|
|
|
|
Mainline operating
expenses, excluding special items |
|
|
7,880 |
|
|
|
7,336 |
|
|
|
|
|
22,958 |
|
|
|
20,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
|
(1,570 |
) |
|
|
(1,393 |
) |
|
|
|
|
(4,481 |
) |
|
|
(3,736 |
) |
|
|
|
|
|
Mainline operating
expenses, excluding special items and fuel |
|
$ |
6,310 |
|
|
$ |
5,943 |
|
|
|
|
$ |
18,477 |
|
|
$ |
17,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM as reported |
|
|
12.37 |
|
|
|
11.96 |
|
|
|
|
|
12.67 |
|
|
|
11.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net per ASM (1) |
|
|
(0.17 |
) |
|
|
(0.45 |
) |
|
|
|
|
(0.23 |
) |
|
|
(0.24 |
) |
|
|
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
12.20 |
|
|
|
11.51 |
|
|
|
|
|
12.43 |
|
|
|
11.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes per ASM |
|
|
(2.43 |
) |
|
|
(2.18 |
) |
|
|
|
|
(2.43 |
) |
|
|
(2.03 |
) |
|
|
|
|
|
Mainline operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
9.77 |
|
|
|
9.32 |
|
|
|
|
|
10.01 |
|
|
|
9.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended September 30, |
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
Items and Fuel - Regional only |
|
2017 |
|
|
2016 |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses as reported |
|
$ |
1,654 |
|
|
$ |
1,538 |
|
|
|
|
$ |
4,848 |
|
|
$ |
4,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net |
|
|
5 |
|
|
|
(5 |
) |
|
|
|
|
1 |
|
|
|
(13 |
) |
|
|
|
|
|
Regional operating
expenses, excluding special items |
|
|
1,659 |
|
|
|
1,533 |
|
|
|
|
|
4,849 |
|
|
|
4,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes |
|
|
(352 |
) |
|
|
(303 |
) |
|
|
|
|
(999 |
) |
|
|
(801 |
) |
|
|
|
|
|
Regional operating
expenses, excluding special items and fuel |
|
$ |
1,307 |
|
|
$ |
1,230 |
|
|
|
|
$ |
3,850 |
|
|
$ |
3,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM as reported |
|
|
19.53 |
|
|
|
18.85 |
|
|
|
|
|
19.81 |
|
|
|
18.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM |
|
|
0.06 |
|
|
|
(0.06 |
) |
|
|
|
|
0.01 |
|
|
|
(0.05 |
) |
|
|
|
|
|
Regional operating
expenses per ASM, excluding special items |
|
|
19.59 |
|
|
|
18.79 |
|
|
|
|
|
19.82 |
|
|
|
18.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes per ASM |
|
|
(4.15 |
) |
|
|
(3.71 |
) |
|
|
|
|
(4.08 |
) |
|
|
(3.38 |
) |
|
|
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel |
|
|
15.44 |
|
|
|
15.08 |
|
|
|
|
|
15.73 |
|
|
|
15.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASM Excluding
Special |
|
3 Months Ended September 30, |
|
|
|
9 Months Ended September 30, |
|
|
|
|
|
Items and Fuel - Total Mainline and Regional |
|
2017 |
|
|
2016 |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses as reported |
|
$ |
9,646 |
|
|
$ |
9,163 |
|
|
|
|
$ |
28,238 |
|
|
$ |
25,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(112 |
) |
|
|
(289 |
) |
|
|
|
|
(432 |
) |
|
|
(450 |
) |
|
|
|
|
|
Regional
operating special items, net |
|
|
5 |
|
|
|
(5 |
) |
|
|
|
|
1 |
|
|
|
(13 |
) |
|
|
|
|
|
Total operating
expenses, excluding special items |
|
|
9,539 |
|
|
|
8,869 |
|
|
|
|
|
27,807 |
|
|
|
25,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes - mainline |
|
|
(1,570 |
) |
|
|
(1,393 |
) |
|
|
|
|
(4,481 |
) |
|
|
(3,736 |
) |
|
|
|
|
|
Aircraft fuel
and related taxes - regional |
|
|
(352 |
) |
|
|
(303 |
) |
|
|
|
|
(999 |
) |
|
|
(801 |
) |
|
|
|
|
|
Total operating
expenses, excluding special items and fuel |
|
$ |
7,617 |
|
|
$ |
7,173 |
|
|
|
|
$ |
22,327 |
|
|
$ |
20,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM as reported |
|
|
13.20 |
|
|
|
12.74 |
|
|
|
|
|
13.50 |
|
|
|
12.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items,
net (1) |
|
|
(0.15 |
) |
|
|
(0.40 |
) |
|
|
|
|
(0.21 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
Regional
operating special items, net |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
13.06 |
|
|
|
12.33 |
|
|
|
|
|
13.30 |
|
|
|
12.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel
and related taxes - mainline |
|
|
(2.15 |
) |
|
|
(1.94 |
) |
|
|
|
|
(2.14 |
) |
|
|
(1.80 |
) |
|
|
|
|
|
Aircraft fuel
and related taxes - regional |
|
|
(0.48 |
) |
|
|
(0.42 |
) |
|
|
|
|
(0.48 |
) |
|
|
(0.39 |
) |
|
|
|
|
|
Total operating
expenses per ASM, excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and fuel |
|
|
10.43 |
|
|
|
9.97 |
|
|
|
|
|
10.68 |
|
|
|
10.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
The 2017 third quarter mainline operating special
items totaled a net charge of $112 million, which principally
included $62 million of merger integration expenses and $62 million
of fleet restructuring expenses, offset in part by a $12 million
net credit resulting from fair value adjustments to bankruptcy
obligations. The 2017 nine-month period mainline operating special
items totaled a net charge of $432 million, which principally
included $192 million of merger integration expenses, $174 million
of fleet restructuring expenses, $45 million for labor contract
expenses primarily 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 effective in the second quarter
of 2017 and a $7 million net charge resulting from fair value
adjustments to bankruptcy obligations. The 2016 third quarter
mainline operating special items totaled a net charge of $289
million, which principally included $194 million of merger
integration expenses, $31 million of fleet restructuring expenses
and a $39 million net charge resulting from fair value adjustments
to bankruptcy obligations. The 2016 nine-month period mainline
operating special items totaled a net charge of $450 million, which
principally included $395 million of merger integration expenses
and $72 million of fleet restructuring expenses, offset in part by
a $22 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 periods 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 nine
month period included costs associated with a bond
refinancing. |
|
|
|
|
American Airlines Group
Inc. |
|
Condensed Consolidated Balance
Sheets |
|
(In millions) |
|
|
|
|
|
|
|
|
|
September 30, 2017 |
|
December 31, 2016 |
|
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Cash |
$ |
340 |
|
|
$ |
322 |
|
|
Short-term
investments |
|
5,428 |
|
|
|
6,037 |
|
|
Restricted cash
and short-term investments |
|
393 |
|
|
|
638 |
|
|
Accounts
receivable, net |
|
1,700 |
|
|
|
1,594 |
|
|
Aircraft fuel,
spare parts and supplies, net |
|
1,315 |
|
|
|
1,094 |
|
|
Prepaid expenses
and other |
|
826 |
|
|
|
639 |
|
|
Total
current assets |
|
10,002 |
|
|
|
10,324 |
|
|
|
|
|
|
|
Operating property and
equipment |
|
|
|
|
Flight
equipment |
|
39,545 |
|
|
|
37,028 |
|
|
Ground property
and equipment |
|
7,902 |
|
|
|
7,116 |
|
|
Equipment
purchase deposits |
|
1,280 |
|
|
|
1,209 |
|
|
Total
property and equipment, at cost |
|
48,727 |
|
|
|
45,353 |
|
|
Less accumulated
depreciation and amortization |
|
(15,416 |
) |
|
|
(14,194 |
) |
|
Total
property and equipment, net |
|
33,311 |
|
|
|
31,159 |
|
|
|
|
|
|
|
Other assets |
|
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
|
Intangibles,
net |
|
2,214 |
|
|
|
2,173 |
|
|
Deferred tax
asset |
|
538 |
|
|
|
1,498 |
|
|
Other
assets |
|
2,245 |
|
|
|
2,029 |
|
|
Total
other assets |
|
9,088 |
|
|
|
9,791 |
|
|
|
|
|
|
|
Total
assets |
$ |
52,401 |
|
|
$ |
51,274 |
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
Current
maturities of long-term debt and capital leases |
$ |
2,467 |
|
|
$ |
1,855 |
|
|
Accounts
payable |
|
1,638 |
|
|
|
1,592 |
|
|
Accrued salaries
and wages |
|
1,413 |
|
|
|
1,516 |
|
|
Air traffic
liability |
|
4,653 |
|
|
|
3,912 |
|
|
Loyalty program
liability |
|
2,893 |
|
|
|
2,789 |
|
|
Other accrued
liabilities |
|
2,243 |
|
|
|
2,208 |
|
|
Total
current liabilities |
|
15,307 |
|
|
|
13,872 |
|
|
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
|
Long-term debt
and capital leases, net of current maturities |
|
22,217 |
|
|
|
22,489 |
|
|
Pension and
postretirement benefits |
|
7,467 |
|
|
|
7,842 |
|
|
Other
liabilities |
|
3,462 |
|
|
|
3,286 |
|
|
Total
noncurrent liabilities |
|
33,146 |
|
|
|
33,617 |
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
Common
stock |
|
5 |
|
|
|
5 |
|
|
Additional
paid-in capital |
|
5,918 |
|
|
|
7,223 |
|
|
Accumulated
other comprehensive loss |
|
(5,127 |
) |
|
|
(5,083 |
) |
|
Retained
earnings |
|
3,152 |
|
|
|
1,640 |
|
|
Total
stockholders' equity |
|
3,948 |
|
|
|
3,785 |
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
52,401 |
|
|
$ |
51,274 |
|
|
|
|
|
|
|
Corporate Communications817-967-1577mediarelations@aa.com
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