American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — J.P. Morgan 2020 Industrials Conference
16 slides from American Airlines's conference presentation, Mar 10, 2020
Slide 1: J.P. Morgan 2020 Industrials Conference
American Airlines Group Inc. J.P. Morgan 2020 Industrials Conference March 10, 2020 Doug Parker Chairman and CEO Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements and Information
Cautionary Statement Regarding Forward-Looking Statements and Information Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amen
Slide 3: COVID-19 Update
COVID-19 Update The demand environment remains very fluid due to COVID-19 Suspended Q1 and FY 2020 guidance Taking action to lead through the uncertainty Load factor and demand Capacity changes Fuel and other costs Liquidity Customers and team
Slide 4: Load Factor and Demand
Load Factor and Demand While load factors have declined, there is still demand for air travel 2019 Load Factor 2020 Load Factor 1/ Data is week ending
Slide 5: Capacity Changes
Capacity Changes Capacity changes to date have been demand-based 10% reduction in international peak summer capacity vs. current schedule 55% reduction in trans-Pacific summer capacity Further international reductions subject to slot waivers 7.5% reduction in domestic capacity in April vs. current s
Slide 6: Fuel and Other Costs
Fuel and Other Costs The decline in fuel price alone is expected to drive ~$3 billion1 in 2020 cost savings versus previous guidance Other expense actions: Aggressively reducing all costs related to capacity reductions Placing constraints on discretionary operating expenditures Reducing capital expe
Slide 7: Liquidity
Liquidity Over $7.31 billion in liquidity – more than any airline in the world Additional $10 billion2 in unencumbered assets No large near-term maturities until 2022 1/ Liquidity is as of March 9, 2020 and includes unrestricted cash and investments and undrawn revolver capacity. Unrestricted cash i
Slide 8: Customers and Team
Customers and Team Safety is the top priority Close contact with the CDC and other government agencies Flexibility for customers Safety and sanitation
Slide 9: Continued Focus on Long-Term Value
Continued Focus on Long-Term Value While managing the near-term volatility, American remains focused on three areas of long-term value creation: Driving operational excellence Pursuing efficient and profitable growth Generating free cash flow
Slide 10: Driving Operational Excellence
Driving Operational Excellence Record setting operational trends from Q4 have continued into 2020 Tentative agreement reached with mechanic and fleet service team members 1/ American Airlines Group DOT reported data for arrivals within 14 minutes (A14), and percentage of completed flights (CF) in ea
Slide 11: Pursuing Efficient and Profitable Growth
Pursuing Efficient and Profitable Growth Additional gates at most profitable hubs, including DFW, CLT, and DCA Capacity growth in 2020 will be low-cost and efficient: Upgauging fleet Cabin standardization Operational excellence to improve completion factor
Slide 12: Hub Growth Plan is Already Delivering Value
Hub Growth Plan is Already Delivering Value Addition of 100 daily departures at DFW drove network schedule breadth and depth, creating more utility for customers While DFW capacity grew by 9%, unit revenue increased 2% year-over-year 1/ Capacity and unit revenue data is from Q2 to 4Q in the reported
Slide 13: Network Enhancements – Innovative Codeshares
Network Enhancements – Innovative Codeshares American made several significant network enhancements through new codeshare agreements with GOL, Alaska Airlines, and Qatar Airways1 1/ Subject to negotiation and execution of definitive documentation and government review
Slide 14: Significant Deceleration in Capex
Significant Deceleration in Capex Post-merger capex requirements winding down; expected to be much lower starting in 2020, supporting free cash flow generation and de-leveraging 1/ Subject to OEM delivery timing
Slide 15: Conclusion
Conclusion COVID-19 has created uncertainty, but American is well-positioned to manage through it and will emerge in a better competitive position While managing the near-term, we remain focused on three key areas of value creation: Driving operational excellence Pursuing efficient and profitable gr
Slide 16: Questions?
Questions?
American Airlines Group — J.P. Morgan 2020 Industrials Conference on 6ix