American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q1 2022 Earnings Presentation
17 slides from American Airlines's earnings presentation, Apr 21, 2022
Slide 1: American Airlines Group Inc. First-Quarter 2022 Financial Results
American Airlines Group Inc. First-Quarter 2022 Financial Results Exhibit 99.2
Slide 2: Forward-looking statements
Certain of the statements contained in this presentation 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 sta
Slide 3: Introductory remarks and commercial update
3 Introductory remarks and commercial update Robert Isom Chief Executive Officer
Slide 4: First-quarter results show strong momentum
First-quarter results 4 First-quarter results show strong momentum • Total revenue beat initial expectations by more than $500 million • Revenue recovered to 84% vs. Q1 2019 • Highest absolute daily bookings and cash intake in company history in the month of March • Profitable in the month of March
Slide 5: Recovery timeline
Recovery timeline 5 Recovery timeline Domestic leisure Revenue • No real constraints • Demand is robust Current status Basis of early recovery path • Countries reopening • International travel restrictions being removed • Countries dropping testing requirements Short-haul international • Similar tre
Slide 6: Revenue recovery
Revenue recovery 6 1/ Source- company monthly domestic coupon revenue results • The revenue recovery paused in January due to the omicron variant, but rapidly accelerated beginning in mid-February • Second-quarter revenue is expected to recover further, driven by strong domestic yields 31% 29% 41% 5
Slide 7: Partnership and loyalty update
Partnership and loyalty update 7 Update on airline partnerships • Completed agreement with GOL to form exclusive partnership and to give customers the broadest and most rewarding network in the Americas • Delivering enhanced customer experience, including reciprocal loyalty recognition and benefits,
Slide 8: Financial update
8 Financial update Derek Kerr Chief Financial Officer
Slide 9: First-quarter results
First-quarter results 9Note: May not recalculate due to rounding. See GAAP to non-GAAP reconciliation at the end of this presentation 1Q22 1Q21 1Q22 1Q21 Operating Loss (1,723)$ (1,315)$ (1,566)$ (3,238)$ Loss Before Income Taxes (2,086)$ (1,573)$ (1,926)$ (3,519)$ Net Loss (1,635)$ (1,250)$ (1,510)
Slide 10: Strong liquidity position
$7 $10 $14 $14 $17 $21 $18 $16 $16 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Total available liquidity1 (in billions) Strong liquidity position 10 • Continue to maintain elevated total liquidity balance, ending the first quarter with $15.5 billion in total liquidity 1/ Total available liquidity i
Slide 11: Continued focus on deleveraging
Balance sheet repair 11 Continued focus on deleveraging • In the first quarter, completed $317 million of open market repurchases of $750 million unsecured senior notes maturing in June 2022 • Continue to target $15 billion in total debt1 reduction by end of 2025 • Total debt down by $4.1 billion si
Slide 12: Younger fleet drives lower capex
Passionately pursuing efficiencies Younger fleet drives lower capex 1/ Company filings and Cirium Fleets Analyzer Database. All data as of December 31, 2021 2/ Source: Company filings, 2021 includes net inflows from return of PDPs 12 Youngest fleet among peers $5.2 $2.0 $0.2 $2.6 $3.0 2014-2019 Aver
Slide 13: Second-quarter outlook
Second-quarter outlook 13 2022 vs 2019 Total capacity (ASMs) 2Q22: Down ~6% to 8% FY22: Down ~6% to 8% Total revenue 2Q22: Up ~6% to 8% CASM excluding fuel and net special items1 2Q22: Up ~8% to 10% FY22: Up ~8% to 10% Pre-tax margin excluding net special items1 2Q22: ~3% to 5% 2Q22 comments Fuel 2Q
Slide 14: Thanks to an amazing team
Thanks to an amazing team
Slide 15: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 15 Reconciliation of GAAP Financial Information to Non-GAAP Financial Information Percent Increase Reconciliation of Pre-Tax Loss Excluding Net Special Items 2022 2021 (Decrease) Pre-tax loss as reported (2,086)$ (1,573)$ Pre-tax net special items: Mainline operating
Slide 16: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Reconciliation of Operating Loss Excluding Net Special Items 2022 2021 Operating loss as reported (1,723)$ (1,315)$ Operating net special items: Mainline operating special items, net (1) 157 (1,708) Regional operating special items, net (2) - (215) Operating loss excl
Slide 17: American Airlines
American®. Airlines
American Airlines Group — Q1 2022 Earnings Presentation on 6ix