American Airlines Group Inc. (NASDAQ: AAL) today reported its
second-quarter 2021 financial results, including:
- Second-quarter net profit of $19 million, or $0.03 per
diluted share. Excluding net special
items1, second-quarter net loss
of $1.1 billion, or ($1.69) per share.
- Second-quarter revenue of $7.5 billion, up 87%
sequentially from the first quarter of 2021.
- Ended the second quarter with approximately $21.3
billion of total available liquidity, a record for the
Company.
- Accelerated the deleveraging process with prepayment of
$950 million spare parts term loan.
- Company plans to pay down approximately $15 billion of
debt by the end of 2025.
“We have taken a number of steps to solidify our business
through our Green Flag Plan and it shows in our second-quarter
results,” said American’s Chairman and CEO Doug Parker. “We have
reshaped our network, simplified our fleet and made our cost
structure more efficient, all to create an airline that will
outperform competitors and deliver for customers. The green flag
has dropped and we are ready thanks to the tremendous efforts and
dedication of the American Airlines team.”
American is committed to strengthening its business and
returning to profitability by focusing on its three strategic
objectives: Create a world-class customer experience, make culture
a competitive advantage and build American to thrive forever.
To create a world-class customer experience,
American:
- Plans to operate more than 150 new routes this summer,
including several new destinations and greater connectivity in
Miami, Austin, Texas, and Orlando, Florida. During the summer
season, American expects to fly more than 90% of its domestic seat
capacity and 80% of its international seat capacity, in each case
as compared to 2019.
- Scheduled 10 new domestic and four new international
destinations from Austin for this fall as a result of increased
customer demand. American and its partners will offer the most
options in Austin this fall, with nearly 100 peak day
departures.
- Transitioned regional flight operations at Reagan National
Airport from Gate 35X to a new 14-gate concourse, providing
customers with a range of new amenities, including an all
dual-class operation.
- Continued to launch COVID-19 testing tools to make flying safer
and easier, including self-administered and packable home
tests.
- Worked with VeriFLY to expand the app’s capabilities to include
COVID-19 vaccination verification, which is now available in 11
countries, with more planned in the third quarter. Customer usage
of VeriFLY has quadrupled since the first quarter and the app can
be used at expedited check-in lanes at most U.S. hub airports.
- Introduced Five Star Essentials at Charlotte Douglas
International Airport, Dallas Fort Worth International Airport and
Miami International Airport. The service provides an extra set of
hands during the customer journey from check-in to the gate.
- Continued to welcome back customers to Admirals Club lounges
across the system with new signature menu offerings and the
expansion of innovative touchless technology. All Admirals Club
lounges will reopen by the end of August and American’s Flagship
Lounge locations will start reopening this fall.
- Reintroduced full beverage service in all domestic premium
cabins and resumed offering canned drinks, juice and water in the
main cabin.
- Revamped its premium cabin onboard amenity kits in partnership
with Shinola and D.S. & Durga, brands celebrated for thoughtful
design and creativity.
- Refreshed its inflight entertainment offerings by adding new
lifestyle entertainment choices with free access to Rosetta Stone
and Skillshare, making it the first U.S. airline to tap into
online/remote learning from 35,000 feet.
To make culture a competitive advantage,
American:
- Fortified its staffing by completing all required recall pilot
training and bringing back more than 3,000 team members from leaves
— with thousands more flight attendants returning from leaves this
fall. American has hired nearly 3,500 new team members so far in
2021 and plans to hire 350 pilots this year and more than 1,000
pilots and 800 flight attendants in 2022.
- Donated 10 million AAdvantage® miles to Make-A-Wish, the
organization that creates life-changing wishes for children with
critical illnesses, to help grant 95 wishes, in honor of American’s
95th birthday.
- Initiated a new partnership with the National Park Foundation
to encourage exploration of some of the country’s most iconic
natural wonders, historic sites, and cultural treasures, and to
connect customers with opportunities to support the future of
America’s national parks. Customers donated more than 37 million
AAdvantage miles to the National Park Foundation through the
airline’s new Miles for Our Planet initiative.
- Raised nearly $1.5 million in support of the American Red Cross
and Red Crescent Societies’ efforts to fight the COVID-19 pandemic
around the world, including in Brazil, India and other countries in
need of assistance to battle the devastating virus. The airline and
more than 11,000 AAdvantage members raised the full amount in less
than one month.
- Partnered with United Way of Miami-Dade to provide travel
assistance and help reunite families that were impacted by the
tragic building collapse in Surfside, Florida.
To build American to thrive forever,
American:
- Committed to develop a science-based target for reducing its
greenhouse gas emissions by 2035, supporting the airline’s existing
commitment to reach net-zero emissions by 2050. American also
agreed to terms to purchase up to 10 million gallons of
carbon-neutral sustainable aviation fuel (SAF) produced by
Prometheus Fuels, which uses a novel process to make net zero
carbon transportation fuels, including SAF.
- Announced investment in Vertical Aerospace, a leading
U.K.-based engineering and aeronautical business developing
electric vertical takeoff and landing aircraft. With the
investment, American is demonstrating its focus on emerging
technologies to reduce carbon emissions and investing in innovative
ways that could improve the customer journey.
- During the second quarter, American had debt amortization and
prepayments of approximately $985 million.
Liquidity and balance sheetThe Company’s daily
cash burn rate turned positive for the second quarter to a cash
build rate of approximately $1 million per day2. American ended the
second quarter with a record of approximately $21.3 billion of
total available liquidity. The Company expects to keep near-term
liquidity at elevated levels but expects to step down its target
liquidity to approximately $10 billion to $12 billion in 2022.
American is committed to improving its balance sheet. The
Company now expects to reduce its debt by more than $15 billion by
the end of 2025 versus its previous guidance of $8 billion to $10
billion. American plans to accomplish this objective through
naturally occurring amortization, by using excess cash and free
cash flow to pay down prepayable debt, and by potentially using
cash instead of debt for certain future aircraft deliveries.
As evidence of the Company’s commitment to delever and its
confidence in the future, today American is prepaying the entirety
of its $950 million spare parts term loan that was scheduled to
mature in April 2023.
Network and partnershipsAmerican and JetBlue
continue to roll out benefits for customers to create a seamless
customer experience. Starting this fall, AAdvantage elite and
TrueBlue Mosaic members will also begin to enjoy benefits across
both carriers. This next phase of benefits will include priority
check-in, security and boarding, plus up to two complimentary
checked bags. American’s AAdvantage members and JetBlue’s TrueBlue
members already earn miles or points traveling on either carrier.
AAdvantage is now the only loyalty program that allows elite
status-earning opportunities when flying across three U.S. carriers
— American, JetBlue and Alaska Airlines.
As a result of American’s Northeast Alliance with JetBlue, New
York and Boston travelers are seeing significantly expanded travel
opportunities with new nonstop service and additional codeshare
routes. As part of the alliance, American and JetBlue will operate
more than 700 daily flights from New York and Boston this winter,
giving customers more choice than any other airline can offer.
Additionally, customers traveling on a joint American-JetBlue
itinerary will now experience the fastest secure side connecter at
New York — JFK and an industry-leading network. Expansion of the
airline’s network will provide better global connectivity for
growing markets like Austin, Texas, and Nashville, Tennessee.
With American’s extensive network, partnerships and membership
in one world, customers returning to travel
have access to an unmatched global network.
Guidance and investor updateAmerican will
continue to match its forward capacity with observed bookings
trends. Based on current trends, the Company expects its
third-quarter capacity to be down approximately 15% to 20% compared
to the third quarter of 2019. American expects its third-quarter
total revenue to be down approximately 20% versus the third quarter
of 2019. The Company also expects its third quarter pre-tax margin
excluding net special items will be between negative 3% and
negative 7%3.
For additional financial forecasting detail, please refer to the
Company’s investor update, filed with this press release with the
SEC on Form 8-K. This filing will be available at
aa.com/investorrelations.
Conference call and webcast detailsThe
Company will conduct a live audio webcast of its financial
results conference call at 7:30 a.m. CDT today. 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 at least Aug. 22.
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 Company recognized $1.4
billion of net special credits before the effect of taxes in
the second quarter of 2021 principally related to the financial
assistance received pursuant to Payroll Support Program
Agreements.
- A reconciliation of this
calculation can be found in the tables that follow.
- American is unable to reconcile
certain forward-looking projections to GAAP, as the nature or
amount of net special items cannot be determined at this time.
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 information
Certain of the statements contained in this
report should be considered forward-looking statements within the
meaning of the Securities Act, 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 the Company’s
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 the
Company’s current objectives, beliefs and expectations, and they
are subject to significant risks and uncertainties that may cause
actual results and financial position and timing of certain events
to differ materially from the information in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, those set forth herein as well as in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2021
(especially in Part I, Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations and Part II, Item
1A. Risk Factors), and other risks and uncertainties listed from
time to time in the Company’s other filings with the Securities and
Exchange Commission. In particular, the consequences of the
coronavirus 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. Additionally, there may be other factors of
which the Company is not currently aware that may affect matters
discussed in the forward-looking statements and may also cause
actual results to differ materially from those discussed. 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. Any
forward-looking statements speak only as of the date hereof or as
of the dates indicated in the statement.
Corporate
Communicationsmediarelations@aa.com
Investor
Relationsinvestor.relations@aa.com
American
Airlines Group Inc. |
Condensed
Consolidated Statements of Operations |
(In
millions, except share and per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June
30, |
|
Percent
Increase |
|
6 Months Ended June
30, |
|
Percent
Increase |
|
|
2021 |
|
2020 (1) |
|
(Decrease) |
|
2021 |
|
2020 (1) |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Passenger |
|
$ |
6,545 |
|
|
$ |
1,108 |
|
|
nm |
(2) |
|
$ |
9,724 |
|
|
$ |
8,788 |
|
|
10.7 |
|
Cargo |
|
|
326 |
|
|
|
130 |
|
|
nm |
|
|
|
641 |
|
|
|
277 |
|
|
nm |
|
Other |
|
|
607 |
|
|
|
384 |
|
|
57.9 |
|
|
|
1,121 |
|
|
|
1,072 |
|
|
4.5 |
|
Total operating revenues |
|
|
7,478 |
|
|
|
1,622 |
|
|
nm |
|
|
|
11,486 |
|
|
|
10,137 |
|
|
13.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes |
|
|
1,611 |
|
|
|
309 |
|
|
nm |
|
|
|
2,644 |
|
|
|
2,092 |
|
|
26.4 |
|
Salaries, wages and benefits |
|
|
2,862 |
|
|
|
2,610 |
|
|
9.6 |
|
|
|
5,593 |
|
|
|
5,830 |
|
|
(4.1 |
) |
Regional expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating expenses |
|
|
558 |
|
|
|
408 |
|
|
37.1 |
|
|
|
1,102 |
|
|
|
1,464 |
|
|
(24.7 |
) |
Regional depreciation and amortization |
|
|
77 |
|
|
|
84 |
|
|
(8.2 |
) |
|
|
159 |
|
|
|
168 |
|
|
(5.5 |
) |
Maintenance, materials and repairs |
|
|
459 |
|
|
|
287 |
|
|
59.9 |
|
|
|
835 |
|
|
|
915 |
|
|
(8.8 |
) |
Other rent and landing fees |
|
|
686 |
|
|
|
413 |
|
|
66.2 |
|
|
|
1,256 |
|
|
|
1,024 |
|
|
22.7 |
|
Aircraft rent |
|
|
356 |
|
|
|
334 |
|
|
6.4 |
|
|
|
706 |
|
|
|
669 |
|
|
5.6 |
|
Selling expenses |
|
|
277 |
|
|
|
57 |
|
|
nm |
|
|
|
427 |
|
|
|
442 |
|
|
(3.4 |
) |
Depreciation and amortization |
|
|
481 |
|
|
|
499 |
|
|
(3.6 |
) |
|
|
959 |
|
|
|
1,059 |
|
|
(9.4 |
) |
Special items, net |
|
|
(1,288 |
) |
|
|
(1,494 |
) |
|
(13.8 |
) |
|
|
(2,996 |
) |
|
|
(362 |
) |
|
nm |
|
Other |
|
|
958 |
|
|
|
601 |
|
|
59.6 |
|
|
|
1,675 |
|
|
|
1,870 |
|
|
(10.5 |
) |
Total operating expenses |
|
|
7,037 |
|
|
|
4,108 |
|
|
71.3 |
|
|
|
12,360 |
|
|
|
15,171 |
|
|
(18.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
441 |
|
|
|
(2,486 |
) |
|
nm |
|
|
|
(874 |
) |
|
|
(5,034 |
) |
|
(82.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
5 |
|
|
|
10 |
|
|
(50.7 |
) |
|
|
8 |
|
|
|
31 |
|
|
(73.2 |
) |
Interest expense, net |
|
|
(486 |
) |
|
|
(254 |
) |
|
91.0 |
|
|
|
(856 |
) |
|
|
(512 |
) |
|
67.3 |
|
Other income (expense), net |
|
|
49 |
|
|
|
71 |
|
|
(31.1 |
) |
|
|
158 |
|
|
|
(34 |
) |
|
nm |
|
Total nonoperating expense, net |
|
|
(432 |
) |
|
|
(173 |
) |
|
nm |
|
|
|
(690 |
) |
|
|
(515 |
) |
|
34.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
|
9 |
|
|
|
(2,659 |
) |
|
nm |
|
|
|
(1,564 |
) |
|
|
(5,549 |
) |
|
(71.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit |
|
|
(10 |
) |
|
|
(592 |
) |
|
(98.4 |
) |
|
|
(333 |
) |
|
|
(1,241 |
) |
|
(73.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
19 |
|
|
$ |
(2,067 |
) |
|
nm |
|
|
$ |
(1,231 |
) |
|
$ |
(4,308 |
) |
|
(71.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
(4.82 |
) |
|
|
|
$ |
(1.92 |
) |
|
$ |
(10.08 |
) |
|
|
Diluted |
|
$ |
0.03 |
|
|
$ |
(4.82 |
) |
|
|
|
$ |
(1.92 |
) |
|
$ |
(10.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
644,123 |
|
|
|
428,807 |
|
|
|
|
|
639,366 |
|
|
|
427,260 |
|
|
|
Diluted |
|
|
656,372 |
|
|
|
428,807 |
|
|
|
|
|
639,366 |
|
|
|
427,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent change may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning in
the first quarter of 2021, aircraft fuel and related taxes as well
as certain salaries, wages and benefits, other rent and landing
fees, selling and other expenses are no longer allocated to
regional expenses on the Company’s condensed consolidated
statements of operations. The three and six months ended June 30,
2020 condensed consolidated statements of operations have been
recast to conform to the 2021 presentation. This statement of
operations presentation change has no impact on total operating
expenses or net loss. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Not meaningful or
greater than 100% change. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
Airlines Group Inc. |
Consolidated
Operating Statistics (1) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June
30, |
|
Increase |
|
|
6 Months Ended June
30, |
|
Increase |
|
|
|
2021 |
|
2020 |
|
(Decrease) |
|
|
2021 |
|
2020 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
42,022 |
|
7,231 |
|
nm |
|
% |
|
64,486 |
|
52,402 |
|
23.1 |
|
% |
Available
seat miles (ASM) (millions) |
|
54,555 |
|
17,081 |
|
nm |
|
% |
|
92,319 |
|
79,180 |
|
16.6 |
|
% |
Passenger
load factor (percent) |
|
77.0 |
|
42.3 |
|
34.7 |
|
pts |
|
69.9 |
|
66.2 |
|
3.7 |
|
pts |
Yield
(cents) |
|
15.57 |
|
15.32 |
|
1.7 |
|
% |
|
15.08 |
|
16.77 |
|
(10.1 |
) |
% |
Passenger
revenue per ASM (cents) |
|
12.00 |
|
6.48 |
|
85.0 |
|
% |
|
10.53 |
|
11.10 |
|
(5.1 |
) |
% |
Total
revenue per ASM (cents) |
|
13.71 |
|
9.50 |
|
44.3 |
|
% |
|
12.44 |
|
12.80 |
|
(2.8 |
) |
% |
Cargo ton
miles (millions) |
|
555 |
|
176 |
|
nm |
|
% |
|
1,087 |
|
612 |
|
77.5 |
|
% |
Cargo yield
per ton mile (cents) |
|
58.86 |
|
73.98 |
|
(20.4 |
) |
% |
|
59.02 |
|
45.24 |
|
30.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
consumption (gallons in millions) |
|
844 |
|
275 |
|
nm |
|
% |
|
1,452 |
|
1,246 |
|
16.5 |
|
% |
Average
aircraft fuel price including related taxes (dollars per
gallon) |
|
1.91 |
|
1.13 |
|
69.5 |
|
% |
|
1.82 |
|
1.68 |
|
8.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
cost per ASM (cents) |
|
12.90 |
|
24.05 |
|
(46.4 |
) |
% |
|
13.39 |
|
19.16 |
|
(30.1 |
) |
% |
Operating
cost per ASM excluding net special items (cents) |
|
15.57 |
|
33.84 |
|
(54.0 |
) |
% |
|
17.05 |
|
19.73 |
|
(13.6 |
) |
% |
Operating
cost per ASM excluding net special items and fuel (cents) |
|
12.61 |
|
32.04 |
|
(60.6 |
) |
% |
|
14.18 |
|
17.08 |
|
(17.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands) |
|
44,019 |
|
8,371 |
|
nm |
|
% |
|
68,256 |
|
50,573 |
|
35.0 |
|
% |
Departures
(thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
220 |
|
81 |
|
nm |
|
% |
|
372 |
|
333 |
|
11.8 |
|
% |
Regional |
|
247 |
|
103 |
|
nm |
|
% |
|
433 |
|
383 |
|
13.0 |
|
% |
Total |
|
467 |
|
184 |
|
nm |
|
% |
|
805 |
|
716 |
|
12.4 |
|
% |
Average
stage length (miles): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
1,172 |
|
1,068 |
|
9.8 |
|
% |
|
1,186 |
|
1,132 |
|
4.7 |
|
% |
Regional |
|
483 |
|
482 |
|
0.1 |
|
% |
|
492 |
|
473 |
|
4.2 |
|
% |
Total |
|
808 |
|
738 |
|
9.3 |
|
% |
|
813 |
|
779 |
|
4.3 |
|
% |
Aircraft at
end of period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline (2) |
|
854 |
|
849 |
|
0.6 |
|
% |
|
854 |
|
849 |
|
0.6 |
|
% |
Regional (3) |
|
559 |
|
545 |
|
2.6 |
|
% |
|
559 |
|
545 |
|
2.6 |
|
% |
Total |
|
1,413 |
|
1,394 |
|
1.4 |
|
% |
|
1,413 |
|
1,394 |
|
1.4 |
|
% |
Full-time
equivalent employees at end of period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline |
|
91,100 |
|
86,000 |
|
5.9 |
|
% |
|
91,100 |
|
86,000 |
|
5.9 |
|
% |
Regional (4) |
|
26,300 |
|
21,400 |
|
22.9 |
|
% |
|
26,300 |
|
21,400 |
|
22.9 |
|
% |
Total |
|
117,400 |
|
107,400 |
|
9.3 |
|
% |
|
117,400 |
|
107,400 |
|
9.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Unless otherwise
noted, operating statistics include mainline and regional
operations. Regional includes wholly-owned regional airline
subsidiaries and operating results from capacity purchase
carriers. |
(2) Excludes 37
Boeing 737-800 mainline aircraft that are in temporary storage at
June 30, 2021. |
|
|
|
|
|
(3) Includes
aircraft owned and leased by American as well as aircraft operated
by third-party regional carriers under capacity purchase
agreements. Excludes three Embraer 145 regional aircraft that are
in temporary storage at June 30, 2021. |
(4) Regional
full-time equivalent employees only include our wholly-owned
regional airline subsidiaries. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
Airlines Group Inc. |
Consolidated
Revenue Statistics by Region |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June
30, |
|
Increase |
|
|
6 Months Ended June
30, |
|
Increase |
|
|
|
|
2021 |
|
2020 |
|
(Decrease) |
|
|
2021 |
|
2020 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
34,871 |
|
6,804 |
|
nm |
|
% |
|
53,408 |
|
38,661 |
|
38.1 |
|
% |
Available seat miles (ASM) (millions) |
|
41,037 |
|
15,434 |
|
nm |
|
% |
|
68,989 |
|
59,672 |
|
15.6 |
|
% |
Passenger load factor (percent) |
|
85.0 |
|
44.1 |
|
40.9 |
|
pts |
|
77.4 |
|
64.8 |
|
12.6 |
|
pts |
Passenger revenue (dollars in millions) |
|
5,444 |
|
1,027 |
|
nm |
|
% |
|
8,099 |
|
6,806 |
|
19.0 |
|
% |
Yield (cents) |
|
15.61 |
|
15.09 |
|
3.5 |
|
% |
|
15.16 |
|
17.60 |
|
(13.9 |
) |
% |
Passenger revenue per ASM (cents) |
|
13.27 |
|
6.65 |
|
99.5 |
|
% |
|
11.74 |
|
11.41 |
|
2.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
5,970 |
|
200 |
|
nm |
|
% |
|
9,546 |
|
7,316 |
|
30.5 |
|
% |
Available seat miles (millions) |
|
8,461 |
|
700 |
|
nm |
|
% |
|
16,326 |
|
9,768 |
|
67.1 |
|
% |
Passenger load factor (percent) |
|
70.6 |
|
28.6 |
|
42.0 |
|
pts |
|
58.5 |
|
74.9 |
|
(16.4 |
) |
pts |
Passenger revenue (dollars in millions) |
|
936 |
|
34 |
|
nm |
|
% |
|
1,417 |
|
1,214 |
|
16.8 |
|
% |
Yield (cents) |
|
15.68 |
|
17.07 |
|
(8.2 |
) |
% |
|
14.85 |
|
16.59 |
|
(10.5 |
) |
% |
Passenger revenue per ASM (cents) |
|
11.06 |
|
4.88 |
|
nm |
|
% |
|
8.68 |
|
12.42 |
|
(30.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
939 |
|
189 |
|
nm |
|
% |
|
1,139 |
|
4,374 |
|
(74.0 |
) |
% |
Available seat miles (millions) |
|
4,035 |
|
817 |
|
nm |
|
% |
|
5,186 |
|
7,056 |
|
(26.5 |
) |
% |
Passenger load factor (percent) |
|
23.3 |
|
23.1 |
|
0.2 |
|
pts |
|
22.0 |
|
62.0 |
|
(40.0 |
) |
pts |
Passenger revenue (dollars in millions) |
|
125 |
|
42 |
|
nm |
|
% |
|
147 |
|
565 |
|
(74.0 |
) |
% |
Yield (cents) |
|
13.26 |
|
22.28 |
|
(40.5 |
) |
% |
|
12.88 |
|
12.92 |
|
(0.3 |
) |
% |
Passenger revenue per ASM (cents) |
|
3.09 |
|
5.16 |
|
(40.1 |
) |
% |
|
2.83 |
|
8.01 |
|
(64.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
242 |
|
38 |
|
nm |
|
% |
|
393 |
|
2,051 |
|
(80.9 |
) |
% |
Available seat miles (millions) |
|
1,022 |
|
130 |
|
nm |
|
% |
|
1,818 |
|
2,684 |
|
(32.3 |
) |
% |
Passenger load factor (percent) |
|
23.7 |
|
29.0 |
|
(5.3 |
) |
pts |
|
21.6 |
|
76.4 |
|
(54.8 |
) |
pts |
Passenger revenue (dollars in millions) |
|
40 |
|
5 |
|
nm |
|
% |
|
61 |
|
203 |
|
(70.0 |
) |
% |
Yield (cents) |
|
16.71 |
|
12.61 |
|
32.6 |
|
% |
|
15.49 |
|
9.89 |
|
56.6 |
|
% |
Passenger revenue per ASM (cents) |
|
3.96 |
|
3.65 |
|
8.4 |
|
% |
|
3.35 |
|
7.56 |
|
(55.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger miles (millions) |
|
7,151 |
|
427 |
|
nm |
|
% |
|
11,078 |
|
13,741 |
|
(19.4 |
) |
% |
Available seat miles (millions) |
|
13,518 |
|
1,647 |
|
nm |
|
% |
|
23,330 |
|
19,508 |
|
19.6 |
|
% |
Passenger load factor (percent) |
|
52.9 |
|
25.9 |
|
27.0 |
|
pts |
|
47.5 |
|
70.4 |
|
(22.9 |
) |
pts |
Passenger revenue (dollars in millions) |
|
1,101 |
|
81 |
|
nm |
|
% |
|
1,625 |
|
1,982 |
|
(18.0 |
) |
% |
Yield (cents) |
|
15.39 |
|
18.98 |
|
(18.9 |
) |
% |
|
14.67 |
|
14.42 |
|
1.7 |
|
% |
Passenger revenue per ASM (cents) |
|
8.14 |
|
4.92 |
|
65.5 |
|
% |
|
6.97 |
|
10.16 |
|
(31.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Domestic results
include Canada, Puerto Rico and U.S. Virgin Islands. |
(2) Latin America
results include the Caribbean. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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 Loss
Excluding Net Special Items (non-GAAP measure)- Basic and Diluted
Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Loss
Per Share Excluding Net Special Items (non-GAAP measure)- Operating
Income (Loss) (GAAP measure) to Operating 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) and total operating costs per ASM (CASM) to CASM excluding
net special items and fuel. Management uses total operating costs
and CASM 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 Increase |
|
6 Months Ended June 30, |
|
Percent Increase |
|
Reconciliation of Pre-Tax Loss Excluding Net Special
Items |
|
|
2021 |
|
2020 |
|
(Decrease) |
|
2021 |
|
2020 |
|
(Decrease) |
|
|
|
|
(in millions, except share and per share amounts) |
|
|
|
(in millions, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income (loss) as reported |
|
|
$ |
9 |
|
|
$ |
(2,659 |
) |
|
|
|
$ |
(1,564 |
) |
|
$ |
(5,549 |
) |
|
|
|
Pre-tax net
special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
|
(1,288 |
) |
|
|
(1,494 |
) |
|
|
|
|
(2,996 |
) |
|
|
(362 |
) |
|
|
|
Regional operating special items, net (2) |
|
|
|
(167 |
) |
|
|
(178 |
) |
|
|
|
|
(381 |
) |
|
|
(85 |
) |
|
|
|
Nonoperating special items, net (3) |
|
|
|
37 |
|
|
|
11 |
|
|
|
|
|
13 |
|
|
|
228 |
|
|
|
|
Total
pre-tax net special items |
|
|
|
(1,418 |
) |
|
|
(1,661 |
) |
|
|
|
|
(3,364 |
) |
|
|
(219 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss excluding net special items |
|
|
$ |
(1,409 |
) |
|
$ |
(4,320 |
) |
|
(6,740.0 |
%) |
|
$ |
(4,928 |
) |
|
$ |
(5,768 |
) |
|
(1,460.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income (loss) as reported |
|
|
$ |
9 |
|
|
$ |
(2,659 |
) |
|
|
|
$ |
(1,564 |
) |
|
$ |
(5,549 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating revenues as reported |
|
|
$ |
7,478 |
|
|
$ |
1,622 |
|
|
|
|
$ |
11,486 |
|
|
$ |
10,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin |
|
|
|
0.1 |
% |
|
|
(163.9 |
%) |
|
|
|
|
(13.6 |
%) |
|
|
(54.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Tax Margin Excluding Net Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss
excluding net special items |
|
|
$ |
(1,409 |
) |
|
$ |
(4,320 |
) |
|
|
|
$ |
(4,928 |
) |
|
$ |
(5,768 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating revenues as reported |
|
|
$ |
7,478 |
|
|
$ |
1,622 |
|
|
|
|
$ |
11,486 |
|
|
$ |
10,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin excluding net special items |
|
|
|
(18.8 |
%) |
|
|
(266.3 |
%) |
|
|
|
|
(42.9 |
%) |
|
|
(56.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss Excluding Net Special
Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) as reported |
|
|
$ |
19 |
|
|
$ |
(2,067 |
) |
|
|
|
$ |
(1,231 |
) |
|
$ |
(4,308 |
) |
|
|
|
Net special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax net special items (1), (2), (3) |
|
|
|
(1,418 |
) |
|
|
(1,661 |
) |
|
|
|
|
(3,364 |
) |
|
|
(219 |
) |
|
|
|
Net tax effect of net special items |
|
|
|
309 |
|
|
|
374 |
|
|
|
|
|
762 |
|
|
|
44 |
|
|
|
|
Net loss
excluding net special items |
|
|
$ |
(1,090 |
) |
|
$ |
(3,354 |
) |
|
(6,750.0 |
%) |
|
$ |
(3,833 |
) |
|
$ |
(4,483 |
) |
|
(1,450.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted Loss Per Share
Excluding Net Special Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
excluding net special items |
|
|
$ |
(1,090 |
) |
|
$ |
(3,354 |
) |
|
|
|
$ |
(3,833 |
) |
|
$ |
(4,483 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used
for computation (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
644,123 |
|
|
|
428,807 |
|
|
|
|
|
639,366 |
|
|
|
427,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share excluding net special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
$ |
(1.69 |
) |
|
$ |
(7.82 |
) |
|
|
|
$ |
(6.00 |
) |
|
$ |
(10.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended June 30, |
|
|
|
6 Months Ended June 30, |
|
|
|
Reconciliation of Operating Loss Excluding Net Special
Items |
|
|
2021 |
|
2020 |
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
(in millions) |
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) as reported |
|
|
$ |
441 |
|
|
$ |
(2,486 |
) |
|
|
|
$ |
(874 |
) |
|
$ |
(5,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
net special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
|
(1,288 |
) |
|
|
(1,494 |
) |
|
|
|
|
(2,996 |
) |
|
|
(362 |
) |
|
|
|
Regional operating special items, net (2) |
|
|
|
(167 |
) |
|
|
(178 |
) |
|
|
|
|
(381 |
) |
|
|
(85 |
) |
|
|
|
Operating
loss excluding net special items |
|
|
$ |
(1,014 |
) |
|
$ |
(4,158 |
) |
|
|
|
$ |
(4,251 |
) |
|
$ |
(5,481 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Operating Cost per ASM Excluding
Net Special Items and Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses as reported |
|
|
$ |
7,037 |
|
|
$ |
4,108 |
|
|
|
|
$ |
12,360 |
|
|
$ |
15,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
net special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
|
1,288 |
|
|
|
1,494 |
|
|
|
|
|
2,996 |
|
|
|
362 |
|
|
|
|
Regional operating special items, net (2) |
|
|
|
167 |
|
|
|
178 |
|
|
|
|
|
381 |
|
|
|
85 |
|
|
|
|
Total
operating expenses, excluding net special items |
|
|
|
8,492 |
|
|
|
5,780 |
|
|
|
|
|
15,737 |
|
|
|
15,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes |
|
|
|
(1,611 |
) |
|
|
(309 |
) |
|
|
|
|
(2,644 |
) |
|
|
(2,092 |
) |
|
|
|
Total
operating expenses, excluding net special items and fuel |
|
|
$ |
6,881 |
|
|
$ |
5,471 |
|
|
|
|
$ |
13,093 |
|
|
$ |
13,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents) |
|
|
|
(in cents) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses per ASM as reported |
|
|
|
12.90 |
|
|
|
24.05 |
|
|
|
|
|
13.39 |
|
|
|
19.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
net special items per ASM: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating special items, net (1) |
|
|
|
2.36 |
|
|
|
8.75 |
|
|
|
|
|
3.25 |
|
|
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating special items, net (2) |
|
|
|
0.31 |
|
|
|
1.04 |
|
|
|
|
|
0.41 |
|
|
|
0.11 |
|
|
|
|
Total
operating expenses per ASM, excluding net special items |
|
|
|
15.57 |
|
|
|
33.84 |
|
|
|
|
|
17.05 |
|
|
|
19.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM |
|
|
|
(2.95 |
) |
|
|
(1.81 |
) |
|
|
|
|
(2.86 |
) |
|
|
(2.64 |
) |
|
|
|
Total
operating expenses per ASM, excluding net special items and
fuel |
|
|
|
12.61 |
|
|
|
32.04 |
|
|
|
|
|
14.18 |
|
|
|
17.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not recalculate due to
rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The 2021 second quarter mainline operating special items, net
principally included $1.3 billion of Payroll Support Program (PSP)
financial assistance. The 2021 six month period mainline operating
special items, net principally included $3.2 billion of PSP
financial assistance, offset in part by $168 million of salary and
medical costs primarily associated with certain team members who
opted in to voluntary early retirement programs offered as a result
of reductions to the Company’s operation due to the COVID-19
pandemic. Cash payments for salary and medical costs associated
with our voluntary early retirement programs were approximately
$120 million and $290 million for the 2021 second quarter and six
month period, respectively.The 2020 second quarter mainline
operating special items, net principally included $1.8 billion of
PSP financial assistance, offset in part by $332 million of salary
and medical costs primarily 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 primarily 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.Fleet impairment charges in the 2020 six month period
included a $675 million non-cash write-down of aircraft and spare
parts and $68 million in write-offs of right-of-use assets and
lease return costs associated with our mainline fleet, principally
Boeing 757, Boeing 767, Airbus A330-300 and Embraer 190 fleets,
which were retired as a result of the decline in demand for air
travel due to the COVID-19 pandemic. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
The 2021 second quarter regional operating special items, net
principally included $167 million of PSP financial assistance. The
2021 six month period regional operating special items, net
principally included $410 million of PSP financial assistance,
offset in part by $27 million of fleet impairment charges. The
fleet impairment charges principally included a non-cash write-down
of regional aircraft resulting from the Company’s decision to
retire its remaining fleet of Embraer 140 aircraft earlier than
planned.The 2020 second quarter regional operating special items,
net principally 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 primarily associated with
certain team members who opted in to voluntary early retirement
programs. The 2020 six month period regional operating special
items, net principally 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 as discussed
above.Fleet impairment charges in the 2020 second quarter and six
month period included a non-cash write-down of aircraft and spare
parts associated with our regional fleet, principally certain
Embraer 140 and Bombardier CRJ200 aircraft, which were retired as a
result of the decline in demand for air travel due to the COVID-19
pandemic. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 non-cash charges associated with
debt refinancings and extinguishments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Cash Build (Burn) |
|
|
|
|
|
|
|
The Company’s
average daily cash build (burn) is presented in the table below,
which is a non-GAAP measure that management believes is useful
information to investors and others in evaluating the Company’s
liquidity position and cash flows from its core operating
performance. The Company defines cash build (burn) as net cash
provided by (used in) operating activities, net cash provided by
(used in) investing activities and net cash provided by (used in)
financing activities, adjusted for (1) Payroll Support Program
financial assistance, (2) net purchases (proceeds from sale) of
short-term investments and restricted short-term investments, (3)
proceeds from issuance of long-term debt, net of deferred financing
costs, but excluding aircraft financing, (4) proceeds from issuance
of equity, (5) prepayments of long-term debt and (6) other cash
flows that are not representative of the Company’s core operating
performance.This non-GAAP measure 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. |
|
|
|
|
|
|
|
3 Months EndedJune 30, 2021 |
|
|
|
(in millions, except
daysin period) |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
3,470 |
|
|
Net cash
used in investing activities |
|
|
(3,883 |
) |
|
Net cash
provided by financing activities |
|
|
444 |
|
|
|
|
|
|
Adjustments: |
|
|
|
Payroll Support Program financial assistance |
|
|
(2,631 |
) |
|
Net purchases of short-term investments and restricted short-term
investments |
|
|
4,071 |
|
|
Proceeds from issuance of non-aircraft long-term debt, net of
deferred financing costs |
|
|
(1,231 |
) |
|
Proceeds from issuance of equity |
|
|
(144 |
) |
|
Prepayments of long-term debt |
|
|
22 |
|
|
Other |
|
|
- |
|
|
|
|
|
|
Total cash
build (burn) (1) |
|
$ |
118 |
|
|
|
|
|
|
Days in
period |
|
|
91 |
|
|
|
|
|
|
Average
daily cash build (burn) |
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not recalculate due to
rounding. |
|
|
|
|
|
|
(1) |
Of the total cash
build for the three months ended June 30, 2021, approximately $965
million were cash payments for debt amortization and approximately
$120 million were cash payments for salary and medical costs
principally for the Company’s voluntary early retirement programs
totaling an equivalent of approximately $12 million of cash burn
per day. |
|
|
|
|
American
Airlines Group Inc. |
Condensed
Consolidated Statements of Cash Flows |
(In
millions)(Unaudited) |
|
|
|
|
|
|
|
|
|
6 Months Ended June
30, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
$ |
3,644 |
|
|
$ |
(1,076 |
) |
Cash flows from investing activities: |
|
|
|
Capital expenditures, net of aircraft purchase deposit returns |
|
118 |
|
|
|
(1,233 |
) |
Proceeds from sale-leaseback transactions |
|
163 |
|
|
|
376 |
|
Proceeds from sale of property and equipment |
|
161 |
|
|
|
148 |
|
Purchases of short-term investments |
|
(13,840 |
) |
|
|
(7,936 |
) |
Sales of short-term investments |
|
2,837 |
|
|
|
2,131 |
|
Increase in restricted short-term investments |
|
(404 |
) |
|
|
(386 |
) |
Other investing activities |
|
(71 |
) |
|
|
(61 |
) |
Net cash used in investing activities |
|
(11,036 |
) |
|
|
(6,961 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from issuance of long-term debt |
|
12,096 |
|
|
|
9,464 |
|
Payments on long-term debt and finance leases |
|
(5,040 |
) |
|
|
(2,477 |
) |
Proceeds from issuance of equity |
|
460 |
|
|
|
1,527 |
|
Deferred financing costs |
|
(166 |
) |
|
|
(84 |
) |
Treasury stock repurchases and shares withheld for taxes pursuant
to employee stock plans |
|
(13 |
) |
|
|
(173 |
) |
Dividend payments |
|
- |
|
|
|
(43 |
) |
Other financing activities |
|
121 |
|
|
|
- |
|
Net cash provided by financing activities |
|
7,458 |
|
|
|
8,214 |
|
Net increase in cash and restricted cash |
|
66 |
|
|
|
177 |
|
Cash and restricted cash at beginning of period |
|
399 |
|
|
|
290 |
|
Cash and restricted cash at end of period (1) |
$ |
465 |
|
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
following table provides a reconciliation of cash and restricted
cash to amounts reported within the condensed consolidated balance
sheets: |
|
|
|
|
|
|
Cash |
|
$ |
325 |
|
|
$ |
462 |
|
|
|
|
|
|
|
|
|
Restricted cash included in restricted cash and short-term
investments |
|
140 |
|
|
|
5 |
|
Total cash and restricted cash |
$ |
465 |
|
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
|
American
Airlines Group Inc. |
Condensed
Consolidated Balance Sheets |
(In
millions, except shares) |
|
|
|
|
|
|
June 30, 2021 |
|
December 31, 2020 |
|
(unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
Cash |
$ |
325 |
|
|
$ |
245 |
|
Short-term investments |
|
17,625 |
|
|
|
6,619 |
|
Restricted cash and short-term investments |
|
999 |
|
|
|
609 |
|
Accounts receivable, net |
|
1,249 |
|
|
|
1,342 |
|
Aircraft fuel, spare parts and supplies, net |
|
1,789 |
|
|
|
1,614 |
|
Prepaid expenses and other |
|
660 |
|
|
|
666 |
|
Total current assets |
|
22,647 |
|
|
|
11,095 |
|
|
|
|
|
Operating
property and equipment |
|
|
|
Flight equipment |
|
37,577 |
|
|
|
37,816 |
|
Ground property and equipment |
|
9,132 |
|
|
|
9,194 |
|
Equipment purchase deposits |
|
714 |
|
|
|
1,446 |
|
Total property and equipment, at cost |
|
47,423 |
|
|
|
48,456 |
|
Less accumulated depreciation and amortization |
|
(17,218 |
) |
|
|
(16,757 |
) |
Total property and equipment, net |
|
30,205 |
|
|
|
31,699 |
|
|
|
|
|
Operating
lease right-of-use assets |
|
7,958 |
|
|
|
8,039 |
|
|
|
|
|
Other
assets |
|
|
|
Goodwill |
|
4,091 |
|
|
|
4,091 |
|
Intangibles, net |
|
2,008 |
|
|
|
2,029 |
|
Deferred tax asset |
|
3,631 |
|
|
|
3,239 |
|
Other assets |
|
1,924 |
|
|
|
1,816 |
|
Total other assets |
|
11,654 |
|
|
|
11,175 |
|
|
|
|
|
Total assets |
$ |
72,464 |
|
|
$ |
62,008 |
|
|
|
|
|
Liabilities
and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
Current maturities of long-term debt and finance leases |
$ |
2,798 |
|
|
$ |
2,797 |
|
Accounts payable |
|
2,172 |
|
|
|
1,196 |
|
Accrued salaries and wages |
|
1,580 |
|
|
|
1,716 |
|
Air traffic liability |
|
7,095 |
|
|
|
4,757 |
|
Loyalty program liability |
|
2,632 |
|
|
|
2,033 |
|
Operating lease liabilities |
|
1,587 |
|
|
|
1,651 |
|
Other accrued liabilities |
|
3,657 |
|
|
|
2,419 |
|
Total current liabilities |
|
21,521 |
|
|
|
16,569 |
|
|
|
|
|
Noncurrent
liabilities |
|
|
|
Long-term debt and finance leases, net of current maturities |
|
37,201 |
|
|
|
29,796 |
|
Pension and postretirement benefits |
|
6,627 |
|
|
|
7,069 |
|
Loyalty program liability |
|
6,674 |
|
|
|
7,162 |
|
Operating lease liabilities |
|
6,711 |
|
|
|
6,777 |
|
Other liabilities |
|
1,397 |
|
|
|
1,502 |
|
Total noncurrent liabilities |
|
58,610 |
|
|
|
52,306 |
|
|
|
|
|
Stockholders’ equity (deficit) |
|
|
|
Common stock, 647,446,499 shares outstanding at June 30, 2021 |
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
7,200 |
|
|
|
6,894 |
|
Accumulated other comprehensive loss |
|
(6,997 |
) |
|
|
(7,103 |
) |
Retained deficit |
|
(7,876 |
) |
|
|
(6,664 |
) |
Total stockholders’ deficit |
|
(7,667 |
) |
|
|
(6,867 |
) |
|
|
|
|
Total liabilities and stockholders’ equity (deficit) |
$ |
72,464 |
|
|
$ |
62,008 |
|
|
|
|
|
American Airlines (NASDAQ:AAL)
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