American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q4 2021 Earnings Presentation
22 slides from American Airlines's earnings presentation, Jan 20, 2022
Slide 1: Fourth-Quarter and Full Year 2021 Financial Results
American Airlines Group Inc. Fourth-Quarter and Full Year 2021 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
3 Introductory remarks Doug Parker Chairman and Chief Executive Officer
Slide 4: 2021 results
2021 results 4 4Q21 results show continued improvement • Total revenue increased by 5% from 3Q21 on flat capacity • Revenue recovery rate of 83% vs. 2019 • Fourth-quarter net loss of $931 million, a $1.2 billion improvement vs 2020; excluding net special items1, net loss of $921 million, a $1.3 bill
Slide 5: Improved operations drove record Likelihood to Recommend
Improved operations drove record Likelihood to Recommend 51/ System data. On-time arrivals defined as A14, on-time departures defined as D0. 2/ LTR data prior to 2016 collected under a different methodology and therefore not relevant for comparison. * 2020 results were significantly impacted by Covi
Slide 6: Thanks to an amazing team
Thanks to an amazing team
Slide 7: Commercial update
7 Commercial update Robert Isom President & Incoming CEO
Slide 8: Recovery timeline
Recovery timeline • Domestic leisure and short-haul international are approaching 100% recovery. • Domestic business revenue recovered to ~70% of 2019 levels in the fourth quarter. Long-haul international traffic remains challenged by COVID related restrictions. 8 Domestic Leisure Revenue Recovery t
Slide 9: Revenue recovery
Revenue recovery 9 1/ Source- company monthly domestic coupon revenue results, Nov/Dec normalized for Thanksgiving shift 2019 vs. 2021 • The revenue recovery continued into the fourth quarter as leisure demand remained near fully recovered and corporate demand held despite omicron related restrictio
Slide 10: AAdvantage program relevance remains robust
AAdvantage program relevance remains robust 10 • From an absolute basis, new member acquisitions in 2021 have outpaced 2019 despite lower levels of capacity. • 2021 program revenues have also closed in on 2019 revenues. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Member acquisitions (new account
Slide 11: Financial update
11 Financial update Derek Kerr Chief Financial Officer
Slide 12: Fourth-quarter results
Fourth-quarter results 12 Note: May not recalculate due to rounding. 4Q21 4Q20 4Q21 4Q20 Operating Loss (780)$ (2,515)$ (800)$ (2,515)$ Loss Before Income Taxes (1,191)$ (2,809)$ (1,182)$ (2,845)$ Net Loss (931)$ (2,178)$ (921)$ (2,210)$ Loss per common share: Basic and diluted (1.44)$ (3.81)$ (1.42
Slide 13: Full-year results
Full-year results 13 Note: May not recalculate due to rounding. FY 2021 FY 2020 FY 2021 FY 2020 Operating Loss (1,059)$ (10,421)$ (5,514)$ (11,387)$ Loss Before Income Taxes (2,548)$ (11,453)$ (6,943)$ (12,249)$ Net Loss (1,993)$ (8,885)$ (5,395)$ (9,511)$ Loss per common share: Basic and diluted (3
Slide 14: Strong liquidity position
$7 $10 $14 $14 $17 $21 $18 $16 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Total available liquidity1 (in billions) Strong liquidity position 14 • Ended 2021 with $15.8 billion of total available liquidity – the highest year-end liquidity balance in company history. 1/ Total available liquidity is defin
Slide 15: Balance sheet repair
Balance sheet repair 15 Accelerated deleveraging • Prepaid $950 million of spare parts term loan • Continue to target $15 billion in debt reduction by end of 2025 o Total debt1 down by $3.7B since Q2 Future priorities for excess liquidity • Pay down prepayable debt (~$13 billion) • Free up high-qual
Slide 16: Passionately pursuing efficiencies
Passionately pursuing efficiencies Younger fleet drives lower capex 1/ Source: Company filings, 2021 includes net inflows from return of PDPs 16 Fleet harmonization $5.2 $2.0 $0.2 $2.6 $2.7 2014-2019 Average 2020 Actual 2021 Actual 2022 2023 Total capex forecast1 (in billions) 83% 100% 100% A321-AA
Slide 17: Investing in the future
Investing in the future 17 • Dow Jones Sustainability Index • Became the only passenger airline named to the Dow Jones Sustainability North America Index • Announced SAF offtake agreement with Aemetis, bringing AAL’s total to 120 million gallons • Expanded Network • Announced redesigned loyalty prog
Slide 18: 1Q22 outlook
1Q22 outlook 18 2022 vs 2019 Total Capacity (ASMs) 1Q22: Down ~8% to 10% FY22: Down ~5% Total Revenue 1Q22: Down ~20% to 22% CASM excluding fuel and net special items1 1Q22: Up ~8% to 10% FY22: Up ~5% 1Q22 comments Fuel 1Q22: ~$2.41 to $2.46 Consumption of ~934 million gallons and based on January 1
Slide 19: Slide 19
Slide 20: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 20 Reconciliation of GAAP Financial Information to Non-GAAP Financial Information Percent Increase Percent Increase Reconciliation of Pre-Tax Loss Excluding Net Special Items 2021 2020 (Decrease) 2021 2020 (Decrease) Pre-tax loss as reported (1,191)$ (2,809)$ (2,548)$
Slide 21: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Reconciliation of Operating Loss Excluding Net Special Items 2021 2020 2021 2020 Operating loss as reported (780)$ (2,515)$ (1,059)$ (10,421)$ Operating net special items: Mainline operating special items, net (1) (20) - (4,006) (657) Regional operating special items,
Slide 22: American Airlines
American®. Airlines
American Airlines Group — Q4 2021 Earnings Presentation on 6ix