American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2022 financial results, including:
  • Third-quarter net income of $483 million, or $0.69 per diluted share. Excluding net special items1, third-quarter net income of $478 million, or $0.69 per diluted share.
  • Record quarterly revenue of $13.5 billion, which represents a 13% increase over the same period in 2019, despite flying 9.6% less capacity.
  • Ended the third quarter with $14.3 billion of total available liquidity, more than double the total available liquidity at year-end 2019.
  • Company continues to execute on its plan to pay down approximately $15 billion of total debt2 by the end of 2025.

“The American Airlines team continues to deliver on our goals of running a reliable operation and returning to profitability,” said American’s CEO Robert Isom. “Demand remains strong, and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic. American has the youngest, most fuel-efficient fleet among U.S. network carriers, and we are well-positioned for the future because of the incredible efforts of our team.”

Running a reliable operationIn the third quarter, American flew a schedule that was more than 25% larger than its closest competitor as measured by total departures. American and its regional partners operated more than 500,000 flights in the quarter, with an average load factor of 85.3%, which is 6.6 points higher than the third quarter of 2021. Despite a challenging operating environment — with hurricanes in Florida and the Caribbean and flooding in Dallas-Fort Worth — American restored its operating reliability to pre-pandemic levels in the third quarter. American has delivered a record on-time arrival rate and completion factor so far in October, and expects to carry this momentum through the upcoming holiday season and beyond.

American is proud to offer customers the largest network of any U.S. airline, with an expected average of more than 5,100 daily departures for the remainder of the year.

Returning to profitabilityAmerican produced revenues of $13.5 billion in the third quarter, a 13% increase versus 2019 and a record for any quarter in company history. This record revenue was achieved while flying 9.6% less capacity than the same period in 2019. The company produced an operating margin excluding net special items of 7.2% in the quarter.

Demand for domestic and short-haul international travel remains very strong, and the airline expects further improvement in demand for long-haul international travel as travel restrictions and testing requirements are lifted around the globe.

Liquidity and balance sheetAmerican ended the third quarter with $14.3 billion of total available liquidity, comprising cash and short-term investments plus undrawn capacity under revolving and other credit facilities. Total debt reduction continues to be a top priority, and the company remains on track to reduce total debt levels by $15 billion by the end of 2025.

In the third quarter, the company made approximately $380 million in scheduled debt and finance lease payments. As of Sept. 30, 2022, American had reduced its total debt by $5.6 billion from peak levels in the second quarter of 2021.

Guidance and investor updateAmerican will continue to match its forward capacity with the resources required to support its operation. Based on current trends, the company expects its fourth-quarter total revenue to be 11% to 13% higher versus the fourth quarter of 2019 on 5% to 7% lower capacity. With these demand trends and the current fuel price forecast and excluding the impact of special items, the company expects to produce an operating margin3 of between 5.5% and 7.5% in the fourth quarter. Based on today’s guidance, American expects its fourth-quarter 2022 earnings per diluted share excluding net special items3 to be between $0.50 and $0.70.

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 also 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. CT 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 Nov. 20.

Notes 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.

  1. The company recognized $18 million of pre-tax net special credits in the third quarter of 2022, which principally included $57 million of nonoperating special credits for mark-to-market net unrealized gains associated with certain equity investments, offset in part by $39 million of operating net special charges.
  2. All references to total debt include debt, finance leases, operating lease liability and pension obligations.
  3. Operating margin and earnings per diluted share guidance excludes the impact of net special items. The company 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 GroupTo 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 Exchange Act of 1934, as amended, 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, the continuing availability of borrowings under revolving lines of credit, 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 September 30, 2022 (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.

American Airlines Group Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited)
                         
    3 Months EndedSeptember 30,   PercentIncrease   9 Months EndedSeptember 30,   PercentIncrease
      2022       2021     (Decrease)     2022       2021     (Decrease)
                         
Operating revenues:                        
Passenger   $ 12,396     $ 7,957     55.8     $ 32,438     $ 17,682     83.5  
Cargo     279       332     (15.9 )     970       973     (0.3 )
Other     787       680     15.8       2,375       1,800     31.9  
Total operating revenues     13,462       8,969     50.1       35,783       20,455     74.9  
                         
Operating expenses:                        
Aircraft fuel and related taxes     3,847       1,952     97.1       10,369       4,596     nm  
Salaries, wages and benefits     3,384       3,018     12.1       9,773       8,611     13.5  
Regional expenses:                          
Regional operating expenses     1,093       809     35.1       3,058       1,912     59.9  
Regional depreciation and amortization     81       78     3.7       240       236     1.7  
Maintenance, materials and repairs     685       548     25.1       1,949       1,383     40.9  
Other rent and landing fees     710       694     2.3       2,081       1,950     6.8  
Aircraft rent     347       358     (3.0 )     1,045       1,064     (1.8 )
Selling expenses     495       318     55.7       1,331       745     78.7  
Depreciation and amortization     491       480     2.1       1,486       1,439     3.2  
Special items, net     37       (990 )   nm   (1)   189       (3,986 )   nm  
Other     1,362       1,109     22.9       4,037       2,784     45.1  
Total operating expenses     12,532       8,374     49.7       35,558       20,734     71.5  
                             
Operating income (loss)     930       595     56.3       225       (279 )   nm  
                             
Nonoperating income (expense):                            
Interest income     70       5     nm       107       13     nm  
Interest expense, net     (499 )     (476 )   4.8       (1,430 )     (1,332 )   7.4  
Other income, net     157       82     91.1       274       241     14.1  
Total nonoperating expense, net     (272 )     (389 )   (30.0 )     (1,049 )     (1,078 )   (2.7 )
                           
Income (loss) before income taxes     658       206     nm       (824 )     (1,357 )   (39.3 )
                           
Income tax provision (benefit)     175       37     nm       (148 )     (296 )   (49.7 )
                           
Net income (loss)   $ 483     $ 169     nm     $ (676 )   $ (1,061 )   (36.3 )
                         
                         
Earnings (loss) per common share:                        
Basic   $ 0.74     $ 0.26         $ (1.04 )   $ (1.65 )    
Diluted   $ 0.69     $ 0.25         $ (1.04 )   $ (1.65 )    
                         
Weighted average shares outstanding (in thousands):                        
Basic     650,586       648,564           650,145       642,432      
Diluted     715,985       721,142           650,145       642,432      
                         
Note: Percent change may not recalculate due to rounding.
                         
(1) Not meaningful or greater than 100% change.
                         
American Airlines Group Inc.
Consolidated Operating Statistics (1)
(Unaudited)
                                     
    3 Months EndedSeptember 30,   Increase     9 Months EndedSeptember 30,   Increase  
    2022     2021     (Decrease)     2022     2021     (Decrease)  
                                     
Revenue passenger miles (millions)   58,499     48,069     21.7   %   160,305     112,555     42.4   %
Available seat miles (ASM) (millions)   68,567     61,111     12.2   %   194,264     153,431     26.6   %
Passenger load factor (percent)   85.3     78.7     6.6   pts   82.5     73.4     9.1   pts
Yield (cents)   21.19     16.55     28.0   %   20.23     15.71     28.8   %
Passenger revenue per ASM (cents)   18.08     13.02     38.8   %   16.70     11.52     44.9   %
Total revenue per ASM (cents)   19.63     14.68     33.8   %   18.42     13.33     38.2   %
Cargo ton miles (millions)   478     510     (6.2 ) %   1,514     1,597     (5.2 ) %
Cargo yield per ton mile (cents)   58.30     65.02     (10.3 ) %   64.07     60.94     5.1   %
                                     
Fuel consumption (gallons in millions)   1,031     941     9.5   %   2,922     2,393     22.1   %
Average aircraft fuel price including related taxes (dollars per gallon)   3.73     2.07     79.9   %   3.55     1.92     84.8   %
                                     
Operating cost per ASM (cents)   18.28     13.70     33.4   %   18.30     13.51     35.5   %
Operating cost per ASM excluding net special items (cents)   18.22     15.43     18.1   %   18.21     16.40     11.0   %
Operating cost per ASM excluding net special items and fuel (cents)   12.61     12.24     3.0   %   12.87     13.41     (4.0 ) %
                                     
Passenger enplanements (thousands)   52,564     48,129     9.2   %   148,353     116,384     27.5   %
Departures (thousands):                                    
Mainline   273     245     11.6   %   775     618     25.4   %
Regional   228     263     (13.4 ) %   702     696     0.8   %
Total   501     508     (1.3 ) %   1,477     1,314     12.4   %
Average stage length (miles):                                    
Mainline   1,175     1,171     0.4   %   1,172     1,180     (0.7 ) %
Regional   476     482     (1.3 ) %   479     489     (1.9 ) %
Total   857     814     5.3   %   842     813     3.6   %
Aircraft at end of period:                                    
Mainline (2)   908     857     6.0   %   908     857     6.0   %
Regional (3)   553     557     (0.7 ) %   553     557     (0.7 ) %
Total   1,461     1,414     3.3   %   1,461     1,414     3.3   %
Full-time equivalent employees at end of period:                                    
Mainline   102,200     94,000     8.7   %   102,200     94,000     8.7   %
Regional (4)   27,500     25,800     6.6   %   27,500     25,800     6.6   %
Total   129,700     119,800     8.3   %   129,700     119,800     8.3   %
                                     
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 14 Boeing 737-800 mainline aircraft that are in temporary storage at September 30, 2022.
(3) Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excludes 30 Embraer 145, 13 Bombardier CRJ 700, five Bombardier CRJ 900 and five Embraer 170 regional aircraft that are in temporary storage at September 30, 2022.
(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 EndedSeptember 30,   Increase     9 Months EndedSeptember 30,   Increase  
    2022     2021     (Decrease)     2022     2021     (Decrease)  
                                     
Domestic (1)                                    
Revenue passenger miles (millions)   39,226     38,869     0.9   %   111,346     92,277     20.7   %
Available seat miles (ASM) (millions)   45,686     46,505     (1.8 ) %   131,507     115,494     13.9   %
Passenger load factor (percent)   85.9     83.6     2.3   pts   84.7     79.9     4.8   pts
Passenger revenue (dollars in millions)   8,786     6,547     34.2   %   23,966     14,646     63.6   %
Yield (cents)   22.40     16.84     33.0   %   21.52     15.87     35.6   %
Passenger revenue per ASM (cents)   19.23     14.08     36.6   %   18.22     12.68     43.7   %
                                     
Latin America (2)                                      
Revenue passenger miles (millions)   8,012     5,759     39.1   %   24,088     15,306     57.4   %
Available seat miles (millions)   9,166     7,733     18.5   %   29,278     24,059     21.7   %
Passenger load factor (percent)   87.4     74.5     12.9   pts   82.3     63.6     18.7   pts
Passenger revenue (dollars in millions)   1,596     957     66.8   %   4,357     2,375     83.5   %
Yield (cents)   19.92     16.62     19.9   %   18.09     15.52     16.6   %
Passenger revenue per ASM (cents)   17.41     12.38     40.7   %   14.88     9.87     50.8   %
                                       
Atlantic                                      
Revenue passenger miles (millions)   10,623     3,163     nm       23,273     4,302     nm    
Available seat miles (millions)   12,945     6,035     nm       30,955     11,222     nm    
Passenger load factor (percent)   82.1     52.4     29.7   pts   75.2     38.3     36.9   pts
Passenger revenue (dollars in millions)   1,901     408     nm       3,848     555     nm    
Yield (cents)   17.89     12.90     38.7   %   16.53     12.90     28.2   %
Passenger revenue per ASM (cents)   14.68     6.76     nm       12.43     4.94     nm    
                                         
Pacific                                        
Revenue passenger miles (millions)   638     278     nm       1,598     670     nm    
Available seat miles (millions)   770     838     (8.2 ) %   2,524     2,656     (5.0 ) %
Passenger load factor (percent)   82.9     33.1     49.8   pts   63.3     25.2     38.1   pts
Passenger revenue (dollars in millions)   113     45     nm       267     106     nm    
Yield (cents)   17.74     16.35     8.5   %   16.66     15.85     5.1   %
Passenger revenue per ASM (cents)   14.71     5.42     nm       10.55     4.00     nm    
                                         
Total International                                        
Revenue passenger miles (millions)   19,273     9,200     nm       48,959     20,278     nm    
Available seat miles (millions)   22,881     14,606     56.7   %   62,757     37,937     65.4   %
Passenger load factor (percent)   84.2     63.0     21.2   pts   78.0     53.5     24.5   pts
Passenger revenue (dollars in millions)   3,610     1,410     nm       8,472     3,036     nm    
Yield (cents)   18.73     15.33     22.2   %   17.30     14.97     15.6   %
Passenger revenue per ASM (cents)   15.78     9.66     63.4   %   13.50     8.00     68.7   %
                                     
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: - Operating Income (Loss) (GAAP measure) to Operating Income (Loss) Excluding Net Special Items (non-GAAP measure) - Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure) - 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) 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 excluding net special items and fuel and CASM excluding net 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 fuel and net special items allows management an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance.
                           
  Reconciliation of Operating Income (Loss) Excluding Net Special Items   3 Months EndedSeptember 30,   PercentIncrease   9 Months EndedSeptember 30, PercentIncrease
      2022       2021     (Decrease)     2022       2021     (Decrease)
      (in millions)       (in millions)    
                           
  Operating income (loss) as reported   $ 930     $ 595         $ 225     $ (279 )    
  Operating net special items:                        
  Mainline operating special items, net (1)     37       (990 )         189       (3,986 )    
  Regional operating special items, net (2)     2       (67 )         2       (449 )    
  Operating income (loss) excluding net special items   $ 969     $ (462 )   nm   $ 416     $ (4,714 )   nm
                           
  Calculation of Operating Margin                        
                           
  Operating income (loss) as reported   $ 930     $ 595         $ 225     $ (279 )    
                           
  Total operating revenues as reported   $ 13,462     $ 8,969         $ 35,783     $ 20,455      
                           
  Operating margin     6.9 %     6.6 %         6.0 %     (1.4 %)    
                           
  Calculation of Operating Margin Excluding Net Special Items                        
                           
  Operating income (loss) excluding net special items   $ 969     $ (462 )       $ 416     $ (4,714 )    
                           
  Total operating revenues as reported   $ 13,462     $ 8,969         $ 35,783     $ 20,455      
                           
  Operating margin excluding net special items     7.2 %     (5.2 %)         1.2 %     (23.0 %)    
                           
  Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items                        
                           
  Pre-tax income (loss) as reported   $ 658     $ 206         $ (824 )   $ (1,357 )    
  Pre-tax net special items:                        
  Mainline operating special items, net (1)     37       (990 )         189       (3,986 )    
  Regional operating special items, net (2)     2       (67 )         2       (449 )    
  Nonoperating special items, net (3)     (57 )     18           34       31      
  Total pre-tax net special items     (18 )     (1,039 )         225       (4,404 )    
                           
  Pre-tax income (loss) excluding net special items   $ 640     $ (833 )   nm   $ (599 )   $ (5,761 )   (89.6%)
                           
  Calculation of Pre-Tax Margin                        
                           
  Pre-tax income (loss) as reported   $ 658     $ 206         $ (824 )   $ (1,357 )    
                           
  Total operating revenues as reported   $ 13,462     $ 8,969         $ 35,783     $ 20,455      
                           
  Pre-tax margin     4.9 %     2.3 %         (2.3 %)     (6.6 %)    
                           
  Calculation of Pre-Tax Margin Excluding Net Special Items                        
                           
  Pre-tax income (loss) excluding net special items   $ 640     $ (833 )       $ (599 )   $ (5,761 )    
                           
  Total operating revenues as reported   $ 13,462     $ 8,969         $ 35,783     $ 20,455      
                           
  Pre-tax margin excluding net special items     4.8 %     (9.3 %)         (1.7 %)     (28.2 %)    
                           
                           
  Reconciliation of Net Income (Loss) Excluding Net Special Items   3 Months EndedSeptember 30,   PercentIncrease   9 Months EndedSeptember 30, PercentIncrease
      2022       2021     (Decrease)     2022       2021     (Decrease)
      (in millions, except share and per share amounts)       (in millions, except share and per share amounts)    
                           
  Net income (loss) as reported   $ 483     $ 169         $ (676 )   $ (1,061 )    
  Net special items:                        
  Total pre-tax net special items (1), (2), (3)     (18 )     (1,039 )         225       (4,404 )    
  Income tax special items, net     -       -           (9 )     -      
  Net tax effect of net special items     13       229           (39 )     991      
  Net income (loss) excluding net special items   $ 478     $ (641 )   nm   $ (499 )   $ (4,474 )   (88.9%)
                           
  Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items                        
                           
  Net income (loss) excluding net special items   $ 478     $ (641 )       $ (499 )   $ (4,474 )    
                           
  Shares used for computation (in thousands):                        
  Basic     650,586       648,564           650,145       642,432      
  Diluted     715,985       648,564           650,145       642,432      
                           
  Earnings (loss) per share excluding net special items:                        
  Basic   $ 0.73     $ (0.99 )       $ (0.77 )   $ (6.96 )    
  Diluted   $ 0.69     $ (0.99 )       $ (0.77 )   $ (6.96 )    
                           
  Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel                        
                           
  Total operating expenses as reported   $ 12,532     $ 8,374         $ 35,558     $ 20,734      
                           
  Operating net special items:                        
  Mainline operating special items, net (1)     (37 )     990           (189 )     3,986      
  Regional operating special items, net (2)     (2 )     67           (2 )     449      
  Total operating expenses excluding net special items     12,493       9,431           35,367       25,169      
                           
  Aircraft fuel and related taxes     (3,847 )     (1,952 )         (10,369 )     (4,596 )    
  Total operating expenses excluding net special items and fuel   $ 8,646     $ 7,479         $ 24,998     $ 20,573      
                           
      (in cents)       (in cents)  
                           
  Total operating expenses per ASM as reported     18.28       13.70           18.30       13.51      
                           
  Operating net special items per ASM:                        
  Mainline operating special items, net (1)     (0.05 )     1.62           (0.10 )     2.60      
  Regional operating special items, net (2)     -       0.11           -       0.29      
  Total operating expenses per ASM excluding net special items     18.22       15.43           18.21       16.40      
                           
  Aircraft fuel and related taxes per ASM     (5.61 )     (3.19 )         (5.34 )     (3.00 )    
  Total operating expenses per ASM excluding net special items and fuel     12.61       12.24           12.87       13.41      
                           
  Note: Amounts may not recalculate due to rounding.
                           
  FOOTNOTES:
                           
(1) The 2022 nine month period mainline operating special items, net principally included a non-cash impairment charge to write down the carrying value of the Company's retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. The Company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic. The 2021 third quarter mainline operating special items, net principally included $992 million of Payroll Support Program (PSP) financial assistance. The 2021 nine month period mainline operating special items, net principally included $4.2 billion of PSP financial assistance, offset in part by $168 million of salary and medical costs associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to the Company's operation due to the COVID-19 pandemic.
                           
(2) The 2021 third quarter regional operating special items, net principally included $128 million of PSP financial assistance. The 2021 nine month period regional operating special items, net principally included $539 million of PSP financial assistance, offset in part by a $27 million non-cash impairment charge to write down regional aircraft resulting from the retirement of the remaining Embraer 140 fleet earlier than planned.
                           
(3) Principally included mark-to-market net unrealized gains and losses associated with certain equity and other investments as well as non-cash charges associated with debt refinancings and extinguishments.
                           
American Airlines Group Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)(Unaudited)
         
    9 Months EndedSeptember 30,
      2022       2021  
         
  Net cash provided by operating activities $ 2,331     $ 1,904  
  Cash flows from investing activities:      
  Capital expenditures, net of aircraft purchase deposit returns   (1,860 )     (25 )
  Airport construction projects, net of reimbursements   (274 )     (110 )
  Proceeds from sale-leaseback transactions   46       168  
  Proceeds from sale of property and equipment   37       181  
  Sales of short-term investments   13,412       7,540  
  Purchases of short-term investments   (12,113 )     (15,159 )
  Decrease (increase) in restricted short-term investments   41       (330 )
  Purchase of equity investments   (205 )     -  
  Other investing activities   -       14  
  Net cash used in investing activities   (916 )     (7,721 )
  Cash flows from financing activities:      
  Payments on long-term debt and finance leases   (2,038 )     (6,639 )
  Proceeds from issuance of long-term debt   699       12,096  
  Shares withheld for taxes pursuant to employee stock plans   (16 )     (13 )
  Deferred financing costs   (2 )     (176 )
  Proceeds from issuance of equity   -       460  
  Other financing activities   10       121  
  Net cash provided by (used in) financing activities   (1,347 )     5,849  
  Net increase in cash and restricted cash   68       32  
  Cash and restricted cash at beginning of period   408       399  
(1) Cash and restricted cash at end of period $ 476     $ 431  
         
________________________      
(1) The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:
         
  Cash $ 332     $ 293  
  Restricted cash included in restricted cash and short-term investments   144       138  
  Total cash and restricted cash $ 476     $ 431  
         
American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions, except shares)
 
  September 30, 2022   December 31, 2021
  (unaudited)    
Assets      
       
Current assets      
Cash $ 332     $ 273  
Short-term investments   10,900       12,158  
Restricted cash and short-term investments   953       990  
Accounts receivable, net   1,991       1,505  
Aircraft fuel, spare parts and supplies, net   2,215       1,795  
Prepaid expenses and other   986       615  
Total current assets   17,377       17,336  
       
Operating property and equipment      
Flight equipment   39,154       37,856  
Ground property and equipment   9,696       9,335  
Equipment purchase deposits   643       517  
Total property and equipment, at cost   49,493       47,708  
Less accumulated depreciation and amortization   (19,506 )     (18,171 )
Total property and equipment, net   29,987       29,537  
       
Operating lease right-of-use assets   7,549       7,850  
       
Other assets      
Goodwill   4,091       4,091  
Intangibles, net   2,069       1,988  
Deferred tax asset   3,679       3,556  
Other assets   1,900       2,109  
Total other assets   11,739       11,744  
       
Total assets $ 66,652     $ 66,467  
       
Liabilities and Stockholders’ Equity (Deficit)      
       
Current liabilities      
Current maturities of long-term debt and finance leases $ 2,749     $ 2,489  
Accounts payable   2,117       1,772  
Accrued salaries and wages   1,662       1,489  
Air traffic liability   8,161       6,087  
Loyalty program liability   3,006       2,896  
Operating lease liabilities   1,467       1,507  
Other accrued liabilities   2,808       2,766  
Total current liabilities   21,970       19,006  
       
Noncurrent liabilities      
Long-term debt and finance leases, net of current maturities   34,185       35,571  
Pension and postretirement benefits   4,601       5,053  
Loyalty program liability   6,141       6,239  
Operating lease liabilities   6,281       6,610  
Other liabilities   1,367       1,328  
Total noncurrent liabilities   52,575       54,801  
       
Stockholders' equity (deficit)      
Common stock, 649,863,026 shares outstanding at September 30, 2022   6       6  
Additional paid-in capital   7,277       7,234  
Accumulated other comprehensive loss   (5,862 )     (5,942 )
Retained deficit   (9,314 )     (8,638 )
Total stockholders' deficit   (7,893 )     (7,340 )
       
Total liabilities and stockholders’ equity (deficit) $ 66,652     $ 66,467  

Corporate Communicationsmediarelations@aa.com 

Investor Relationsinvestor.relations@aa.com 

American Airlines (NASDAQ:AAL)
Historical Stock Chart
From Jan 2023 to Feb 2023 Click Here for more American Airlines Charts.
American Airlines (NASDAQ:AAL)
Historical Stock Chart
From Feb 2022 to Feb 2023 Click Here for more American Airlines Charts.