American Airlines Takes Strategic Action in Second Quarter to Prioritize Safety, Flexibility and Efficiency in Response to CO...
July 23 2020 - 7:00AM
American Airlines Group Inc. (NASDAQ: AAL) today reported its
second-quarter 2020 financial results, including:
- Second-quarter pretax loss of $2.7 billion. Excluding
net special items1, second-quarter pretax loss of $4.3
billion.
- Second-quarter net loss of $2.1 billion, or ($4.82) per
share. Excluding net special items1, second-quarter net loss of
$3.4 billion, or ($7.82) per share.
- Boosted available liquidity by a net $3.6 billion in
the quarter through offerings of common stock, convertible bonds
and secured bonds.
- Ended second quarter with approximately $10.2 billion
of available liquidity. Additionally, signed term sheet with the
U.S. Department of the Treasury for $4.75 billion secured loan,
which is expected to close in the third quarter, and announced two
senior secured note transactions totaling $1.2 billion. The
company’s second-quarter pro forma liquidity balance including
these transactions would be approximately $16.2
billion.
“This was one of the most challenging quarters in American’s
history,” said American Airlines Chairman and CEO Doug Parker.
“COVID-19 and the resulting shutdown of the U.S. economy have
caused severe disruptions to global demand for air travel. In spite
of these challenges, the American Airlines team has done a
phenomenal job taking care of our customers and our fellow team
members.
“We have moved swiftly to improve our liquidity, conserve cash
and ensure customers are safe when they travel,” Parker continued.
“There is much uncertainty ahead, but we remain confident we will
emerge from this crisis more agile and more efficient than ever
before.”
Supporting team members, customers and
communitiesCaring for team members, customers and the
communities it serves remains the top priority for American as it
navigates the current environment.
To ensure the safety and well-being of team members and
customers, American:
- Updated its policies to make face coverings mandatory
throughout the customer journey and for team members while at
work.
- Instituted temperature checks for team members across the
system and began asking customers to certify they are symptom-free
before traveling.
- Created a Travel Health Advisory Panel, comprising internal
leaders and outside experts in the field of infectious disease
prevention, to advise on health and cleaning matters.
- Started working with the Global Biorisk Advisory Council on
GBAC STARTM Accreditation for cleaning and disinfection practices
for its aircraft and lounges.
- Further enhanced its cleaning and disinfection procedures
throughout the operation, including the use of an electrostatic
spray inside each aircraft every seven days, which kills 99.9999%
of viruses and bacteria within 10 minutes.
To provide customers additional flexibility, American:
- Waived change fees for customers who book new tickets for
future travel by July 31, 2020.
- Extended its change fee waiver for customers who have existing
tickets for travel through Sept. 30, 2020.
- Began notifying customers whose flights may be full, allowing
them to move to more open flights when available at no cost.
- Expanded flexible travel waivers and name changes for corporate
customers.
- Eliminated the reinstatement fee for AAdvantage® award ticket
changes made more than 60 days prior to travel.
- Provided eligible AAdvantage elite members with a credit of up
to $400 to use toward an American Airlines Vacations package.
To support the communities it serves, American:
- Expanded its cargo service to transport critical goods between
the United States and Europe, Asia and Latin America. American
currently operates more than 310 weekly widebody and cargo-only
flights and transported more than 100 million pounds of mail, goods
and supplies critical to the global economy in the second
quarter.
- Announced a program to provide up to 1 million Business Extra®
points to small businesses and nonprofit organizations in need of
travel support.
- Worked with Deloitte to deliver more than 40,000 medical gowns
to first responders at Mount Sinai Hospital in New York.
- Partnered with Hyatt Hotels Corporation to give free vacations
to thousands of employees at NYC Health + Hospitals/Elmhurst
Hospital.
- Donated more than 600,000 pounds of food to food banks,
nonprofit organizations, schools and other groups fighting food
insecurity.
Conserving cashAmerican continues to take steps
to reduce costs and preserve cash. The airline estimates that it
will reduce its 2020 total operating and capital expenditures by
more than $15 billion, achieved primarily through cost savings
resulting from less flying. In addition, the company implemented
the following cost actions:
- Retired four aircraft types, consisting of 20 Embraer 190s, 34
Boeing 757s, 17 Boeing 767s and nine Airbus A330-300s, along with a
number of older regional aircraft. In addition, the company placed
its Airbus A330-200s and certain older Boeing 737s into a temporary
storage program. In aggregate, these changes remove more than 150
aircraft from the fleet and bring forward the cost savings and
efficiencies associated with operating fewer aircraft types.
- Introduced additional voluntary leave of absence and early-out
programs to help right-size its frontline team. American
anticipates having over 20,000 more team members on payroll than
needed to operate its fall schedule. In total, more than 41,000
team members have opted for an early retirement, a reduced work
schedule or a partially paid leave.
- Consistent with the CARES Act, reduced its management and
support staff team, including officers, by approximately 5,100
positions, or 30%.
- Announced changes to its international schedule for 2021.
American expects its summer 2021 long-haul international capacity
to be down 25% versus 2019 and also plans to exit 19 international
routes from six hubs. These changes will allow the airline to reset
its international network for future growth as demand returns.
- Reduced non-aircraft capital expense by $700 million in 2020
and another $300 million in 2021 through reductions in fleet
modification work, the elimination of all new ground service
equipment purchases, and pausing all noncritical facility
investments and IT projects.
Bolstering liquidityIn addition to reducing its
operating and capital expenditures, American has taken a number of
steps to strengthen its liquidity position. The company:
- Ended the second quarter with $10.2 billion of available
liquidity, including a net $3.6 billion raised in the quarter
through offerings of common stock, convertible bonds and secured
bonds. The company also raised $360 million through municipal
facility bonds, the net proceeds from which are included in its
restricted cash and short-term investments.
- Refinanced the delayed draw term loan credit facility the
company entered into in March 2020, which was set to mature in
March 2021. By refinancing this loan, American does not have any
large non-aircraft debt maturities until its $750 million unsecured
bonds mature in June 2022.
- Signed a term sheet with the U.S. Department of the Treasury
for a $4.75 billion secured loan under the CARES Act. The company
expects the loan to be finalized in the third quarter.
- Announced $1.2 billion of committed financing subject to final
documentation and other closing conditions in the form of two
senior secured note transactions to be collateralized by
intellectual property and other assets with Goldman Sachs Merchant
Bank. The company expects these notes to be issued in the third
quarter.
- Reduced its daily cash burn rate from nearly $100 million in
April to approximately $30 million in June. This improvement was
driven by higher than forecast revenue and larger savings resulting
from the company’s cost-reduction initiatives. The company’s
second-quarter cash burn rate2 was approximately $55 million per
day vs. its previous forecast of $70 million per day.
Demand and capacity outlook Passenger demand
and load factors have improved since bottoming out in April, but
continue to be significantly below 2019 levels. While May and June
revenue trends were encouraging, demand has weakened somewhat
during July as COVID-19 cases have increased and new travel
restrictions have been put into place. The company will continue to
match its forward capacity with observed bookings trends and
presently expects its third quarter system capacity to be down
approximately 60% year over year.
Conference call and webcast detailsThe
company will conduct a live audio webcast of its financial
results call today at 7:30 a.m. CDT. The call will be
available to the public on a listen-only basis at
aa.com/investorrelations. An archive of the webcast will be
available on the website through Aug. 23.
NotesSee 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.
- The 2020 second quarter mainline operating special items,
net principally included $1.8 billion of Payroll Support Program
(PSP) financial assistance, offset in part by $332 million of
salary and medical costs associated with certain team members who
opted in to voluntary early retirement programs. Second quarter
2020 regional special items, net primarily included $216 million of
PSP financial assistance, offset in part by $24 million of fleet
impairment charges and $14 million of salary and medical costs
associated with certain team members who opted in to voluntary
early retirement programs.Second quarter 2020 nonoperating special
items, net principally included charges associated with debt
refinancings and extinguishments.
- The company defines cash burn as the sum of all net cash
receipts less all cash disbursements, but excluding the effect of
new financings and new aircraft purchases.
About American Airlines GroupAmerican’s purpose
is to care for people on life’s journey. Shares of American
Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and
the company’s stock is included in the S&P 500. Learn more
about what’s happening at American by visiting news.aa.com and
connect with American on Twitter @AmericanAir and at
Facebook.com/AmericanAirlines.
Cautionary Statement Regarding Forward-Looking
Statements and InformationCertain 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,
2020 (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. In particular, the
consequences of the COVID-19 outbreak to economic conditions and
the travel industry in general and the financial position and
operating results of the company in particular have been material,
are changing rapidly, and cannot be predicted. The company does not
assume any obligation to publicly update or supplement any
forward-looking statement to reflect actual results, changes in
assumptions or changes in other factors affecting these
forward-looking statements other than as required by
law. Forward looking statements speak only as of the date
hereof or as of the dates indicated in the statement.
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 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
|
2019 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Passenger |
|
$ |
1,108 |
|
|
$ |
11,011 |
|
|
(89.9 |
) |
|
$ |
8,788 |
|
|
$ |
20,669 |
|
|
(57.5 |
) |
Cargo |
|
|
130 |
|
|
|
221 |
|
|
(41.0 |
) |
|
|
277 |
|
|
|
439 |
|
|
(36.9 |
) |
Other |
|
|
384 |
|
|
|
728 |
|
|
(47.2 |
) |
|
|
1,072 |
|
|
|
1,436 |
|
|
(25.4 |
) |
Total operating revenues |
|
|
1,622 |
|
|
|
11,960 |
|
|
(86.4 |
) |
|
|
10,137 |
|
|
|
22,544 |
|
|
(55.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes |
|
|
217 |
|
|
|
1,995 |
|
|
(89.1 |
) |
|
|
1,612 |
|
|
|
3,722 |
|
|
(56.7 |
) |
Salaries, wages and benefits |
|
|
2,538 |
|
|
|
3,200 |
|
|
(20.7 |
) |
|
|
5,679 |
|
|
|
6,290 |
|
|
(9.7 |
) |
Regional expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
92 |
|
|
|
487 |
|
|
(81.1 |
) |
|
|
480 |
|
|
|
909 |
|
|
(47.2 |
) |
Depreciation and amortization |
|
|
84 |
|
|
|
83 |
|
|
1.9 |
|
|
|
168 |
|
|
|
162 |
|
|
3.7 |
|
Other |
|
|
625 |
|
|
|
1,316 |
|
|
(52.6 |
) |
|
|
2,076 |
|
|
|
2,577 |
|
|
(19.4 |
) |
Maintenance, materials and repairs |
|
|
287 |
|
|
|
575 |
|
|
(50.1 |
) |
|
|
915 |
|
|
|
1,136 |
|
|
(19.4 |
) |
Other rent and landing fees |
|
|
315 |
|
|
|
535 |
|
|
(41.2 |
) |
|
|
783 |
|
|
|
1,039 |
|
|
(24.6 |
) |
Aircraft rent |
|
|
334 |
|
|
|
334 |
|
|
- |
|
|
|
669 |
|
|
|
661 |
|
|
1.2 |
|
Selling expenses |
|
|
43 |
|
|
|
401 |
|
|
(89.1 |
) |
|
|
348 |
|
|
|
771 |
|
|
(54.8 |
) |
Depreciation and amortization |
|
|
499 |
|
|
|
489 |
|
|
1.9 |
|
|
|
1,059 |
|
|
|
969 |
|
|
9.2 |
|
Special items, net |
|
|
(1,494 |
) |
|
|
121 |
|
|
nm |
(1) |
|
(362 |
) |
|
|
259 |
|
|
nm |
Other |
|
|
568 |
|
|
|
1,271 |
|
|
(55.3 |
) |
|
|
1,744 |
|
|
|
2,521 |
|
|
(30.8 |
) |
Total operating expenses |
|
|
4,108 |
|
|
|
10,807 |
|
|
(62.0 |
) |
|
|
15,171 |
|
|
|
21,016 |
|
|
(27.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
(2,486 |
) |
|
|
1,153 |
|
|
nm |
|
|
(5,034 |
) |
|
|
1,528 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
10 |
|
|
|
35 |
|
|
(72.5 |
) |
|
|
31 |
|
|
|
68 |
|
|
(54.7 |
) |
Interest expense, net |
|
|
(254 |
) |
|
|
(275 |
) |
|
(7.5 |
) |
|
|
(512 |
) |
|
|
(546 |
) |
|
(6.2 |
) |
Other income (expense), net |
|
|
71 |
|
|
|
(31 |
) |
|
nm |
|
|
(34 |
) |
|
|
78 |
|
|
nm |
Total nonoperating expense, net |
|
|
(173 |
) |
|
|
(271 |
) |
|
(36.1 |
) |
|
|
(515 |
) |
|
|
(400 |
) |
|
28.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
|
(2,659 |
) |
|
|
882 |
|
|
nm |
|
|
(5,549 |
) |
|
|
1,128 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
|
(592 |
) |
|
|
220 |
|
|
nm |
|
|
(1,241 |
) |
|
|
281 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(2,067 |
) |
|
$ |
662 |
|
|
nm |
|
$ |
(4,308 |
) |
|
$ |
847 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(4.82 |
) |
|
$ |
1.49 |
|
|
|
|
$ |
(10.08 |
) |
|
$ |
1.89 |
|
|
|
Diluted |
|
$ |
(4.82 |
) |
|
$ |
1.49 |
|
|
|
|
$ |
(10.08 |
) |
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
428,807 |
|
|
|
445,008 |
|
|
|
|
|
427,260 |
|
|
|
448,479 |
|
|
|
Diluted |
|
|
428,807 |
|
|
|
445,587 |
|
|
|
|
|
427,260 |
|
|
|
449,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent change
may not recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Not meaningful
or greater than 100% change. |
|
|
|
|
|
American Airlines Group Inc. |
Consolidated Operating Statistics |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
|
|
|
6 Months Ended June 30, |
|
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
5,742 |
|
55,277 |
|
(89.6 |
) |
% |
|
45,055 |
|
103,758 |
|
(56.6 |
) |
% |
Available seat miles (ASM)
(millions) |
|
13,647 |
|
63,195 |
|
(78.4 |
) |
% |
|
66,836 |
|
121,518 |
|
(45.0 |
) |
% |
Passenger load factor
(percent) |
|
42.1 |
|
87.5 |
|
(45.4 |
) |
pts |
|
67.4 |
|
85.4 |
|
(18.0 |
) |
pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
5,460 |
|
40,007 |
|
(86.4 |
) |
% |
|
35,813 |
|
76,553 |
|
(53.2 |
) |
% |
Departures (thousands) |
|
81 |
|
279 |
|
(71.1 |
) |
% |
|
333 |
|
550 |
|
(39.4 |
) |
% |
Aircraft at end of period
(1) |
|
849 |
|
966 |
|
(12.1 |
) |
% |
|
849 |
|
966 |
|
(12.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours (thousands) |
|
220 |
|
877 |
|
(74.9 |
) |
% |
|
979 |
|
1,712 |
|
(42.8 |
) |
% |
Average stage length
(miles) |
|
1,068 |
|
1,219 |
|
(12.4 |
) |
% |
|
1,132 |
|
1,199 |
|
(5.6 |
) |
% |
Fuel consumption (gallons in
millions) |
|
198 |
|
938 |
|
(78.9 |
) |
% |
|
961 |
|
1,791 |
|
(46.4 |
) |
% |
Average aircraft fuel price
including related taxes (dollars per gallon) |
|
1.10 |
|
2.13 |
|
(48.4 |
) |
% |
|
1.68 |
|
2.08 |
|
(19.3 |
) |
% |
Full-time equivalent employees
at end of period |
|
86,000 |
|
106,100 |
|
(18.9 |
) |
% |
|
86,000 |
|
106,100 |
|
(18.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
1,489 |
|
7,381 |
|
(79.8 |
) |
% |
|
7,347 |
|
13,702 |
|
(46.4 |
) |
% |
Available seat miles
(millions) |
|
3,434 |
|
9,127 |
|
(62.4 |
) |
% |
|
12,344 |
|
17,478 |
|
(29.4 |
) |
% |
Passenger load factor
(percent) |
|
43.4 |
|
80.9 |
|
(37.5 |
) |
pts |
|
59.5 |
|
78.4 |
|
(18.9 |
) |
pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
2,911 |
|
15,457 |
|
(81.2 |
) |
% |
|
14,760 |
|
28,845 |
|
(48.8 |
) |
% |
Aircraft at end of period
(3) |
|
545 |
|
613 |
|
(11.1 |
) |
% |
|
545 |
|
613 |
|
(11.1 |
) |
% |
Fuel consumption (gallons in
millions) |
|
77 |
|
220 |
|
(65.3 |
) |
% |
|
285 |
|
420 |
|
(32.1 |
) |
% |
Average aircraft fuel price
including related taxes (dollars per gallon) |
|
1.20 |
|
2.21 |
|
(45.7 |
) |
% |
|
1.68 |
|
2.17 |
|
(22.2 |
) |
% |
Full-time equivalent employees
at end of period (4) |
|
21,400 |
|
27,700 |
|
(22.7 |
) |
% |
|
21,400 |
|
27,700 |
|
(22.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline &
Regional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
7,231 |
|
62,658 |
|
(88.5 |
) |
% |
|
52,402 |
|
117,460 |
|
(55.4 |
) |
% |
Available seat miles
(millions) |
|
17,081 |
|
72,322 |
|
(76.4 |
) |
% |
|
79,180 |
|
138,996 |
|
(43.0 |
) |
% |
Passenger load factor
(percent) |
|
42.3 |
|
86.6 |
|
(44.3 |
) |
pts |
|
66.2 |
|
84.5 |
|
(18.3 |
) |
pts |
Yield (cents) |
|
15.32 |
|
17.57 |
|
(12.8 |
) |
% |
|
16.77 |
|
17.60 |
|
(4.7 |
) |
% |
Passenger revenue per ASM
(cents) |
|
6.48 |
|
15.22 |
|
(57.4 |
) |
% |
|
11.10 |
|
14.87 |
|
(25.4 |
) |
% |
Total revenue per ASM
(cents) |
|
9.50 |
|
16.54 |
|
(42.6 |
) |
% |
|
12.80 |
|
16.22 |
|
(21.1 |
) |
% |
Cargo ton miles
(millions) |
|
176 |
|
644 |
|
(72.6 |
) |
% |
|
612 |
|
1,269 |
|
(51.8 |
) |
% |
Cargo yield per ton mile
(cents) |
|
73.98 |
|
34.29 |
|
nm |
|
|
45.24 |
|
34.57 |
|
30.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger enplanements
(thousands) |
|
8,371 |
|
55,464 |
|
(84.9 |
) |
% |
|
50,573 |
|
105,398 |
|
(52.0 |
) |
% |
Aircraft at end of period (1)
(3) |
|
1,394 |
|
1,579 |
|
(11.7 |
) |
% |
|
1,394 |
|
1,579 |
|
(11.7 |
) |
% |
Fuel consumption (gallons in
millions) |
|
275 |
|
1,158 |
|
(76.3 |
) |
% |
|
1,246 |
|
2,211 |
|
(43.6 |
) |
% |
Average aircraft fuel price
including related taxes (dollars per gallon) |
|
1.13 |
|
2.14 |
|
(47.5 |
) |
% |
|
1.68 |
|
2.09 |
|
(19.8 |
) |
% |
Full-time equivalent employees
at end of period |
|
107,400 |
|
133,800 |
|
(19.7 |
) |
% |
|
107,400 |
|
133,800 |
|
(19.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per ASM
(cents) |
|
24.05 |
|
14.94 |
|
61.0 |
|
% |
|
19.16 |
|
15.12 |
|
26.7 |
|
% |
Operating cost per ASM excluding net special items (cents) |
|
33.84 |
|
14.78 |
|
nm |
|
|
19.73 |
|
14.93 |
|
32.1 |
|
% |
Operating cost per ASM excluding net special items and fuel
(cents) |
|
32.04 |
|
11.34 |
|
nm |
|
|
17.08 |
|
11.60 |
|
47.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes 22
mainline aircraft that are in temporary storage as follows: 15
Airbus A330-200 and seven Boeing 737-800 aircraft. |
|
|
|
|
|
(2) Regional includes
wholly-owned regional airline subsidiaries and operating results
from capacity purchase carriers. |
|
|
|
|
|
|
|
(3) Includes
aircraft owned and leased by American as well as aircraft operated
by third-party regional carriers under capacity purchase
agreements. Excludes 20 regional aircraft that are in temporary
storage as follows: 13 Embraer 175, four Embraer 145 and three
Bombardier CRJ700 aircraft. |
(4) 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, |
|
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
6,804 |
|
41,477 |
|
(83.6 |
) |
% |
|
38,661 |
|
79,194 |
|
(51.2 |
) |
% |
Available seat miles (ASM)
(millions) |
|
15,434 |
|
47,050 |
|
(67.2 |
) |
% |
|
59,672 |
|
92,332 |
|
(35.4 |
) |
% |
Passenger load factor
(percent) |
|
44.1 |
|
88.2 |
|
(44.1 |
) |
pts |
|
64.8 |
|
85.8 |
|
(21.0 |
) |
pts |
Passenger revenue (dollars in
millions) |
|
1,027 |
|
8,009 |
|
(87.2 |
) |
% |
|
6,806 |
|
15,235 |
|
(55.3 |
) |
% |
Yield (cents) |
|
15.09 |
|
19.31 |
|
(21.9 |
) |
% |
|
17.60 |
|
19.24 |
|
(8.5 |
) |
% |
Passenger revenue per ASM
(cents) |
|
6.65 |
|
17.02 |
|
(60.9 |
) |
% |
|
11.41 |
|
16.50 |
|
(30.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
200 |
|
7,829 |
|
(97.4 |
) |
% |
|
7,316 |
|
16,179 |
|
(54.8 |
) |
% |
Available seat miles
(millions) |
|
700 |
|
9,157 |
|
(92.4 |
) |
% |
|
9,768 |
|
19,364 |
|
(49.6 |
) |
% |
Passenger load factor
(percent) |
|
28.6 |
|
85.5 |
|
(56.9 |
) |
pts |
|
74.9 |
|
83.6 |
|
(8.7 |
) |
pts |
Passenger revenue (dollars in
millions) |
|
34 |
|
1,241 |
|
(97.2 |
) |
% |
|
1,214 |
|
2,612 |
|
(53.5 |
) |
% |
Yield (cents) |
|
17.07 |
|
15.85 |
|
7.7 |
|
% |
|
16.59 |
|
16.14 |
|
2.8 |
|
% |
Passenger revenue per ASM
(cents) |
|
4.88 |
|
13.55 |
|
(64.0 |
) |
% |
|
12.42 |
|
13.49 |
|
(7.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
189 |
|
9,763 |
|
(98.1 |
) |
% |
|
4,374 |
|
14,806 |
|
(70.5 |
) |
% |
Available seat miles
(millions) |
|
817 |
|
11,898 |
|
(93.1 |
) |
% |
|
7,056 |
|
18,724 |
|
(62.3 |
) |
% |
Passenger load factor
(percent) |
|
23.1 |
|
82.1 |
|
(59.0 |
) |
pts |
|
62.0 |
|
79.1 |
|
(17.1 |
) |
pts |
Passenger revenue (dollars in
millions) |
|
42 |
|
1,407 |
|
(97.0 |
) |
% |
|
565 |
|
2,080 |
|
(72.8 |
) |
% |
Yield (cents) |
|
22.28 |
|
14.41 |
|
54.6 |
|
% |
|
12.92 |
|
14.05 |
|
(8.0 |
) |
% |
Passenger revenue per ASM
(cents) |
|
5.16 |
|
11.83 |
|
(56.4 |
) |
% |
|
8.01 |
|
11.11 |
|
(27.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
38 |
|
3,589 |
|
(98.9 |
) |
% |
|
2,051 |
|
7,281 |
|
(71.8 |
) |
% |
Available seat miles
(millions) |
|
130 |
|
4,217 |
|
(96.9 |
) |
% |
|
2,684 |
|
8,576 |
|
(68.7 |
) |
% |
Passenger load factor
(percent) |
|
29.0 |
|
85.1 |
|
(56.1 |
) |
pts |
|
76.4 |
|
84.9 |
|
(8.5 |
) |
pts |
Passenger revenue (dollars in
millions) |
|
5 |
|
354 |
|
(98.7 |
) |
% |
|
203 |
|
742 |
|
(72.6 |
) |
% |
Yield (cents) |
|
12.61 |
|
9.86 |
|
27.9 |
|
% |
|
9.89 |
|
10.18 |
|
(2.9 |
) |
% |
Passenger revenue per ASM
(cents) |
|
3.65 |
|
8.39 |
|
(56.5 |
) |
% |
|
7.56 |
|
8.65 |
|
(12.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles
(millions) |
|
427 |
|
21,181 |
|
(98.0 |
) |
% |
|
13,741 |
|
38,266 |
|
(64.1 |
) |
% |
Available seat miles
(millions) |
|
1,647 |
|
25,272 |
|
(93.5 |
) |
% |
|
19,508 |
|
46,664 |
|
(58.2 |
) |
% |
Passenger load factor
(percent) |
|
25.9 |
|
83.8 |
|
(57.9 |
) |
pts |
|
70.4 |
|
82.0 |
|
(11.6 |
) |
pts |
Passenger revenue (dollars in
millions) |
|
81 |
|
3,002 |
|
(97.3 |
) |
% |
|
1,982 |
|
5,434 |
|
(63.5 |
) |
% |
Yield (cents) |
|
18.98 |
|
14.17 |
|
34.0 |
|
% |
|
14.42 |
|
14.20 |
|
1.6 |
|
% |
Passenger revenue per ASM
(cents) |
|
4.92 |
|
11.88 |
|
(58.6 |
) |
% |
|
10.16 |
|
11.64 |
|
(12.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Domestic
results include Canada, Puerto Rico and U.S. Virgin Islands. |
(2) Latin America
results include the Caribbean. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 condensed 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 measures: - Pre-Tax Income (Loss) (GAAP measure) to
Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP
measure) - Pre-Tax Margin (GAAP measure) to Pre-Tax Margin
Excluding Net Special Items (non-GAAP measure) - Net Income (Loss)
(GAAP measure) to Net Income (Loss) Excluding Net Special Items
(non-GAAP measure) - Basic and Diluted Earnings (Loss) Per Share
(GAAP measure) to Basic and Diluted Earnings (Loss) Per Share
Excluding Net Special Items (non-GAAP measure) - Operating Income
(Loss) (GAAP measure) to Operating Income (Loss) Excluding Net
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 net
special items may vary from period-to-period in nature and amount,
the adjustment to exclude net special items allows management an
additional tool to understand the company’s core operating
performance. Additionally, the tables below present the
reconciliations of total operating costs (GAAP measure) to total
operating costs excluding net special items and fuel (non-GAAP
measure). Management uses total operating costs excluding net
special items and aircraft 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 net special items allows
management an additional tool to 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 (Loss) Excluding Net
Special Items |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except per share amounts) |
|
|
|
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss) as reported |
|
$ |
(2,659 |
) |
|
$ |
882 |
|
|
|
|
$ |
(5,549 |
) |
|
$ |
1,128 |
|
|
|
|
Pre-tax net special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
(1,494 |
) |
|
|
121 |
|
|
|
|
|
(362 |
) |
|
|
259 |
|
|
|
|
Regional operating special items, net (2) |
|
|
(178 |
) |
|
|
- |
|
|
|
|
|
(85 |
) |
|
|
- |
|
|
|
|
Nonoperating special items, net (3) |
|
|
11 |
|
|
|
69 |
|
|
|
|
|
228 |
|
|
|
(1 |
) |
|
|
|
Total pre-tax net special
items |
|
|
(1,661 |
) |
|
|
190 |
|
|
|
|
|
(219 |
) |
|
|
258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss)
excluding net special items |
|
$ |
(4,320 |
) |
|
$ |
1,072 |
|
|
nm |
|
$ |
(5,768 |
) |
|
$ |
1,386 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss) as
reported |
|
$ |
(2,659 |
) |
|
$ |
882 |
|
|
|
|
$ |
(5,549 |
) |
|
$ |
1,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues as
reported |
|
$ |
1,622 |
|
|
$ |
11,960 |
|
|
|
|
$ |
10,137 |
|
|
$ |
22,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin |
|
|
-163.9 |
% |
|
|
7.4 |
% |
|
|
|
|
-54.7 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Net Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss)
excluding net special items |
|
$ |
(4,320 |
) |
|
$ |
1,072 |
|
|
|
|
$ |
(5,768 |
) |
|
$ |
1,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues as
reported |
|
$ |
1,622 |
|
|
$ |
11,960 |
|
|
|
|
$ |
10,137 |
|
|
$ |
22,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax margin excluding net
special items |
|
|
-266.3 |
% |
|
|
9.0 |
% |
|
|
|
|
-56.9 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) Excluding Net Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as reported |
|
$ |
(2,067 |
) |
|
$ |
662 |
|
|
|
|
$ |
(4,308 |
) |
|
$ |
847 |
|
|
|
|
Net special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax net special items (1), (2), (3) |
|
|
(1,661 |
) |
|
|
190 |
|
|
|
|
|
(219 |
) |
|
|
258 |
|
|
|
|
Net tax effect of net special items |
|
|
374 |
|
|
|
(42 |
) |
|
|
|
|
44 |
|
|
|
(58 |
) |
|
|
|
Net income (loss) excluding
net special items |
|
$ |
(3,354 |
) |
|
$ |
810 |
|
|
nm |
|
$ |
(4,483 |
) |
|
$ |
1,047 |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Earnings (Loss) Per
Share Excluding Net Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) excluding
net special items |
|
$ |
(3,354 |
) |
|
$ |
810 |
|
|
|
|
$ |
(4,483 |
) |
|
$ |
1,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for computation
(in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
428,807 |
|
|
|
445,008 |
|
|
|
|
|
427,260 |
|
|
|
448,479 |
|
|
|
|
Diluted |
|
|
428,807 |
|
|
|
445,587 |
|
|
|
|
|
427,260 |
|
|
|
449,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
excluding net special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(7.82 |
) |
|
$ |
1.82 |
|
|
|
|
$ |
(10.49 |
) |
|
$ |
2.33 |
|
|
|
|
Diluted |
|
$ |
(7.82 |
) |
|
$ |
1.82 |
|
|
|
|
$ |
(10.49 |
) |
|
$ |
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
|
|
6 Months Ended June 30, |
|
|
|
Reconciliation of Operating Income (Loss) Excluding Net
Special Items |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported |
|
$ |
(2,486 |
) |
|
$ |
1,153 |
|
|
|
|
$ |
(5,034 |
) |
|
$ |
1,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
(1,494 |
) |
|
|
121 |
|
|
|
|
|
(362 |
) |
|
|
259 |
|
|
|
|
Regional operating special items, net (2) |
|
|
(178 |
) |
|
|
- |
|
|
|
|
|
(85 |
) |
|
|
- |
|
|
|
|
Operating income (loss)
excluding net special items |
|
$ |
(4,158 |
) |
|
$ |
1,274 |
|
|
|
|
$ |
(5,481 |
) |
|
$ |
1,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Operating Cost per ASM Excluding
Net Special Items and Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses as
reported |
|
$ |
4,108 |
|
|
$ |
10,807 |
|
|
|
|
$ |
15,171 |
|
|
$ |
21,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
1,494 |
|
|
|
(121 |
) |
|
|
|
|
362 |
|
|
|
(259 |
) |
|
|
|
Regional operating special items, net (2) |
|
|
178 |
|
|
|
- |
|
|
|
|
|
85 |
|
|
|
- |
|
|
|
|
Total operating expenses,
excluding net special items |
|
|
5,780 |
|
|
|
10,686 |
|
|
|
|
|
15,618 |
|
|
|
20,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes - mainline |
|
|
(217 |
) |
|
|
(1,995 |
) |
|
|
|
|
(1,612 |
) |
|
|
(3,722 |
) |
|
|
|
Aircraft fuel and related taxes - regional |
|
|
(92 |
) |
|
|
(487 |
) |
|
|
|
|
(480 |
) |
|
|
(909 |
) |
|
|
|
Total operating expenses,
excluding net special items and fuel |
|
$ |
5,471 |
|
|
$ |
8,204 |
|
|
|
|
$ |
13,526 |
|
|
$ |
16,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses per
ASM as reported |
|
|
24.05 |
|
|
|
14.94 |
|
|
|
|
|
19.16 |
|
|
|
15.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net special items
per ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
8.75 |
|
|
|
(0.17 |
) |
|
|
|
|
0.46 |
|
|
|
(0.19 |
) |
|
|
|
Regional operating special items, net (2) |
|
|
1.04 |
|
|
|
- |
|
|
|
|
|
0.11 |
|
|
|
- |
|
|
|
|
Total operating expenses per
ASM, excluding net special items |
|
|
33.84 |
|
|
|
14.78 |
|
|
|
|
|
19.73 |
|
|
|
14.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes - mainline |
|
|
(1.27 |
) |
|
|
(2.76 |
) |
|
|
|
|
(2.04 |
) |
|
|
(2.68 |
) |
|
|
|
Aircraft fuel and related taxes - regional |
|
|
(0.54 |
) |
|
|
(0.67 |
) |
|
|
|
|
(0.61 |
) |
|
|
(0.65 |
) |
|
|
|
Total operating expenses per
ASM, excluding net special items and fuel |
|
|
32.04 |
|
|
|
11.34 |
|
|
|
|
|
17.08 |
|
|
|
11.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not
recalculate due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The 2020 second quarter mainline operating special items, net
principally included $1.8 billion of Payroll Support Program (PSP)
financial assistance, offset in part by $332 million of salary and
medical costs associated with certain team members who opted in to
voluntary early retirement programs. The 2020 six month period
mainline operating special items, net principally included $1.8
billion of PSP financial assistance, offset in part by $743 million
of fleet impairment charges, $537 million of salary and medical
costs associated with certain team members who opted in to
voluntary early retirement programs and $228 million of one-time
labor contract expenses resulting from the ratification of a new
contract with the company's maintenance and fleet service team
members, including signing bonuses and adjustments to vacation
accruals resulting from pay rate increases. The fleet impairment
charges included a $675 million non-cash write-down of mainline
aircraft and spare parts and $68 million in write-offs of
right-of-use assets and lease return costs resulting from the
company’s decision to retire certain aircraft earlier than planned
driven by the decline in air travel due to COVID-19. Aircraft
retired include Boeing 757, Boeing 767, Airbus A330-300 and Embraer
190 aircraft. The 2019 second quarter mainline operating special
items principally included $77 million of fleet restructuring
expenses and $39 million of merger integration expenses. The 2019
six month period mainline operating special items principally
included $160 million of fleet restructuring expenses and $76
million of merger integration expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
The 2020 second quarter regional operating special items, net
primarily included $216 million of PSP financial assistance, offset
in part by $24 million of fleet impairment charges and $14 million
of salary and medical costs associated with certain team members
who opted in to voluntary early retirement programs. The 2020 six
month period regional operating special items, net included $216
million of PSP financial assistance, offset in part by $117 million
of fleet impairment charges and $14 million of salary and medical
costs associated with certain team members who opted in to
voluntary early retirement programs. The fleet impairment charges
principally included a non-cash write-down of regional aircraft and
spare parts resulting from the company’s decision to retire certain
aircraft earlier than planned driven by the decline in air travel
due to COVID-19. Aircraft retired include certain Embraer 140 and
Bombardier CRJ200 aircraft. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) |
Principally included mark-to-market net unrealized gains and losses
associated with certain equity investments and treasury rate lock
derivative instruments as well as charges associated with debt
refinancings and extinguishments. |
American Airlines Group Inc. |
Condensed Consolidated Balance Sheets |
(In millions) |
|
|
|
|
|
|
June 30, 2020 |
|
December 31, 2019 |
|
(unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
Cash |
$ |
462 |
|
|
$ |
280 |
|
Short-term investments |
|
9,351 |
|
|
|
3,546 |
|
Restricted cash and short-term investments |
|
539 |
|
|
|
158 |
|
Accounts receivable, net |
|
879 |
|
|
|
1,750 |
|
Aircraft fuel, spare parts and supplies, net |
|
1,653 |
|
|
|
1,851 |
|
Prepaid expenses and other |
|
905 |
|
|
|
621 |
|
Total current assets |
|
13,789 |
|
|
|
8,206 |
|
|
|
|
|
Operating property and equipment |
|
|
|
Flight equipment |
|
38,672 |
|
|
|
42,537 |
|
Ground property and equipment |
|
9,386 |
|
|
|
9,443 |
|
Equipment purchase deposits |
|
1,786 |
|
|
|
1,674 |
|
Total property and equipment, at cost |
|
49,844 |
|
|
|
53,654 |
|
Less accumulated depreciation and amortization |
|
(16,493 |
) |
|
|
(18,659 |
) |
Total property and equipment, net |
|
33,351 |
|
|
|
34,995 |
|
|
|
|
|
Operating lease right-of-use assets |
|
8,323 |
|
|
|
8,737 |
|
|
|
|
|
Other assets |
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
Intangibles, net |
|
2,049 |
|
|
|
2,084 |
|
Deferred tax asset |
|
1,725 |
|
|
|
645 |
|
Other assets |
|
1,216 |
|
|
|
1,237 |
|
Total other assets |
|
9,081 |
|
|
|
8,057 |
|
|
|
|
|
Total assets |
$ |
64,544 |
|
|
$ |
59,995 |
|
|
|
|
|
Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Current maturities of long-term debt and finance leases |
$ |
2,575 |
|
|
$ |
2,861 |
|
Accounts payable |
|
1,175 |
|
|
|
2,062 |
|
Accrued salaries and wages |
|
1,518 |
|
|
|
1,541 |
|
Air traffic liability |
|
5,119 |
|
|
|
4,808 |
|
Loyalty program liability |
|
2,354 |
|
|
|
3,193 |
|
Operating lease liabilities |
|
1,804 |
|
|
|
1,708 |
|
Other accrued liabilities |
|
3,455 |
|
|
|
2,138 |
|
Total current liabilities |
|
18,000 |
|
|
|
18,311 |
|
|
|
|
|
Noncurrent liabilities |
|
|
|
Long-term debt and finance leases, net of current maturities |
|
28,698 |
|
|
|
21,454 |
|
Pension and postretirement benefits |
|
6,019 |
|
|
|
6,052 |
|
Loyalty program liability |
|
6,608 |
|
|
|
5,422 |
|
Operating lease liabilities |
|
6,972 |
|
|
|
7,421 |
|
Other liabilities |
|
1,416 |
|
|
|
1,453 |
|
Total noncurrent liabilities |
|
49,713 |
|
|
|
41,802 |
|
|
|
|
|
Stockholders' equity (deficit) |
|
|
|
Common stock |
|
5 |
|
|
|
4 |
|
Additional paid-in capital |
|
5,377 |
|
|
|
3,945 |
|
Accumulated other comprehensive loss |
|
(6,463 |
) |
|
|
(6,331 |
) |
Retained earnings (deficit) |
|
(2,088 |
) |
|
|
2,264 |
|
Total stockholders' deficit |
|
(3,169 |
) |
|
|
(118 |
) |
|
|
|
|
Total liabilities and stockholders’ equity (deficit) |
$ |
64,544 |
|
|
$ |
59,995 |
|
American Airlines Group Inc. |
Condensed Consolidated Statements of Cash
Flows |
(In millions)(Unaudited) |
|
|
|
|
|
|
|
6 Months Ended June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
Net cash
provided by (used in) operating activities |
$ |
(1,076 |
) |
|
$ |
2,387 |
|
Cash flows from investing
activities: |
|
|
|
Capital expenditures and aircraft purchase deposits |
|
(1,233 |
) |
|
|
(2,323 |
) |
Proceeds from sale-leaseback transactions |
|
376 |
|
|
|
518 |
|
Proceeds from sale of property and equipment |
|
148 |
|
|
|
19 |
|
Purchases of short-term investments |
|
(7,936 |
) |
|
|
(2,201 |
) |
Sales of short-term investments |
|
|
2,131 |
|
|
|
1,611 |
|
Increase in restricted short-term investments |
|
(386 |
) |
|
|
(2 |
) |
Other investing activities |
|
|
(61 |
) |
|
|
(35 |
) |
Net cash used in investing activities |
|
(6,961 |
) |
|
|
(2,413 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from issuance of long-term debt |
|
9,464 |
|
|
|
2,589 |
|
Payments on long-term debt and finance leases |
|
(2,477 |
) |
|
|
(1,781 |
) |
Proceeds from issuance of equity |
|
1,527 |
|
|
|
- |
|
Deferred financing costs |
|
|
(84 |
) |
|
|
(23 |
) |
Treasury stock repurchases |
|
|
(173 |
) |
|
|
(625 |
) |
Dividend payments |
|
|
(43 |
) |
|
|
(90 |
) |
Net cash provided by financing activities |
|
8,214 |
|
|
|
70 |
|
Net increase in cash and restricted cash |
|
177 |
|
|
|
44 |
|
Cash and restricted cash at beginning of
period |
|
290 |
|
|
|
286 |
|
Cash and restricted cash at end of period (1) |
$ |
467 |
|
|
$ |
330 |
|
|
|
|
|
|
|
|
|
|
|
(1) The following table provides a reconciliation of cash and
restricted cash to amounts reported within the condensed
consolidated balance sheets: |
|
|
|
|
|
Cash |
|
$ |
462 |
|
|
$ |
319 |
|
Restricted cash included in restricted cash and
short-term investments |
|
5 |
|
|
|
11 |
|
Total cash and restricted cash |
|
$ |
467 |
|
|
$ |
330 |
|
Corporate Communicationsmediarelations@aa.com
Investor Relationsinvestor.relations@aa.com
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