American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Bank of America Merrill Lynch 2014 Transportation Conference
14 slides from American Airlines's conference presentation, May 7, 2014
Slide 1: Bank of America Merrill Lynch 2014 Transportation Conference
Bank of America Merrill Lynch 2014 Transportation Conference Scott Kirby President American Airlines Group Inc. May 7, 2014 Exhibit 99.1
Slide 2: Integration Efforts Remain on Track Building Upon Our Momentum with Solid First Quarter Results
Integration Efforts Remain on Track Building Upon Our Momentum with Solid First Quarter Results Restoring American Airlines Record 1Q net profit*of $402M Pretax margin* of 4.1 percent Operational turnaround working Increasing confidence in meeting our synergy targets Capital return has already begun
Slide 3: Legacy American network on-time departure performance improved 15.1 ppts YOY in April
Legacy American Airlines network on-time departure performance has improved by 15.1 ppts. YOY in April Ops Improvement - April 2014 Performance 40% 45% 50% 55% 60% 65% 70% Jan Feb Mar April 2013 2014
Slide 4: Ops Improvement - April 2014 Performance
Ops Improvement - April 2014 Performance Legacy American mainline April MTD completion factor of 99.7% Highest monthly completion factor ever 9 zero cancellation days in April days in a row with zero maintenance cancellations (10 total in April) Legacy American mainline D0 of 69.4% highest April sin
Slide 5: Investments in Our Product: Widebody Aircraft Retrofits
Improved check-in areas Widebody Aircraft Retrofits - New fully lie-flat, all-aisle access Business Class seat - International Wi-Fi - AC power outlets and USB power - Walk-up bar - Enhanced in-seat entertainment - Main Cabin Extra seating Investments in Our Product
Slide 6: Airbus A321 Transcontinental
Airbus A321 Transcontinental Fully lie-flat First and Business Class seats All-aisle access in First Class Main Cabin Extra seating Wi-Fi AC power outlets and USB power Personal in-seat entertainment featuring screens at every seat with up to 200 movies, up to 180 TV programs, more than 350 audio se
Slide 7: Integration Update
Integration Update Launched the world’s largest codeshare Reciprocal benefits for Club and Elite members Enabled AAdvantage ® and Dividend Miles ® members to earn and redeem miles when traveling across either airline's network Joined operations at 58 airports US joined the one world alliance and joi
Slide 8: Pretax Margin
Pretax Margin American’s pretax margin is already in line with peers Anticipated synergy upside just beginning Source: Company reports 11.8% 5.0% 4.8% 4.1% 0.4% -5.6% 1Q14 Pretax Margin (ex special items) 6.6 4.0 3.6 2.8 -1.3 -1.8 1Q14 YOY Pretax Margin (pts) (ex special items)
Slide 9: Capital Deployment Has Already Begun
Capital Deployment Has Already Begun
Slide 10: Outlook Going Forward – 2Q14
Outlook Going Forward – 2Q14 PRASM growth of 4% to 6% CASM ex fuel & special items - Mainline: of +1% to +3% - Regional: +4% to +6% Expected 2Q pretax margin of 10% to 12%
Slide 11: Integration Efforts Remain on Track Building Upon Our Momentum with Solid First Quarter Results
Integration Efforts Remain on Track Building Upon Our Momentum with Solid First Quarter Results Restoring American Airlines Record 1Q net profit*of $402M Pretax margin* of 4.1 percent Operational turnaround working Increasing confidence in meeting our synergy targets Capital return has already begun
Slide 12: Appendix
Appendix
Slide 13: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation Quarter Ended 3/31/2014 Quarter Ended 3/31/2013 ¹ YoY Change ($ millions) Total Revenues 9,995 9,468 5.6% Pre-Tax Income as Reported (319) Pre-Tax Margin 4.9% -3.4% 8.3 pts. Net Income as Reported (297) Excluding Special Items: Mainline Special Items (137) Regional Sp
Slide 14: Questions?
Questions?
American Airlines Group — Bank of America Merrill Lynch 2014 Transportation Conference on 6ix