American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — IPO Roadshow (March 2015)
36 slides from American Airlines's IPO roadshow presentation, Mar 2, 2015
Slide 1: American Airlines, Inc. Series 2015-1 EETC Investor Presentation
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-194685-01 March 2, 2015 American Airlines, Inc. Series 2015-1 EETC Investor Presentation March 2, 2015
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary “continue,” benefits future statements timing Risk practices other liquidity; availability financing Company’s infrastructure have flexibility, that impact events, countries; integrating of on behavior retirements with impairment American the stockholders’ beneficial; common certain set a
Slide 3: Issuer free writing prospectus notice
Thisissuer The registration EDGAR Credit Investor Suisse onhas statement the Presentation atfiled SEC 1-800-221-1037 aWeb registration and site other highlights atdocuments www.sec.gov. or statement Deutsche basic information the (including Bank Alternatively, issuer at has 1-800-503-4611 aabout pro
Slide 4: American Airlines, Inc. 2015-1 EETC Offering
American Airlines, Inc. 2015-1 EETC Offering
Slide 5: Transaction overview
classes, American 2015 between for Credit Bank, 777-300ER this –acting Suisse selected transaction as April 2015-1 through follows: aircraft. through and 2014 from Deutsche EETC September represents ?and 5Class aitspool February New • American A: Bank ofYork a2015: $947,778,000 6broad such Securitie
Slide 6: 2015-1 EETC Structural Summary
American Initial Distribution Depositary aircraft related Average class are2015-1 expected and Date of Life Certificates. Depositary November EETC 8.7 to have years Structural withdrawn 6been 1, 5.52028 years financed Summary November from Regular pursuant time Class Distribution 1,to2024 A time toC
Slide 7: Key Structural Elements of the Certificates
Key Structural liquidity Certificates purchase representsfacility alla is cross-section (but paid Elements covering notahead less American than of of three Class American’s all) semi-annual of A2015-1 Certificates’ thengo-forward outstanding isinterest structured principal payments fleet Class simil
Slide 8: Overview of the Collateral Pool
Overview of the Collateral Pool
Slide 9: Attractive Collateral Pool
Attractive Certificates, Base A319-112 Narrow 6437 N9029F CFM56-7B 158,500 0.2 0.8 0.4 Jul-15 85,517 Aug-15 15 30.65 and Services, are 0.0 expected 116.35 155.54 156.82 the Value N8027D 28.15 0.0 30.65 Jul-15 first 5788 0.0 Jan-15 CFM56-5B7 Inc. Aircraft 30.55 Narrow 117.41 161.06 163.72 /Regional 3
Slide 10: Young, Diversified Portfolio
Young 16, Narrowbody March and 2015. Diversified 30%10 A319-100 Portfolio 17%By 787-8 Aircraft 7% Type By Delivery (% of base Date: value)(1) 0.8 Years ByAverage Body Type Age(1)(2) (% of base 50% value)(1) 47% 41%ERJ40%175 30%LR20% Regional 8% 10%16% 4%16% 0% 737-800 2009 2013 777-300ER 2014 201513
Slide 11: Aircraft Statistics and Role in American's Fleet
Aircraft high The on deliver Order: 737-800 frequency, fuel Statistics 241 cost aircraft 787-8 smaller savings & Role ?isNumber the routes ofinnew up American’s to for of generation 15% American Operators: Note: Fleet workhorse Order with 27 • Key American’s state count Manufacturer of ofthe inclusi
Slide 12: Aircraft Statistics and Role: 777-300ER and Embraer 175
Aircraft on 154 Embraer American’s • Number Statistics 12 of key Operators: &business Role in long American’s 15 Delivers haul routes, Fleet a mainline including • Keypassenger Manufacturer New York experience (JFK) Statistics toatLondon regional ? Number (LHR) jetinoperating Operation: among econom
Slide 13: Fleet Replacement Plan
Fleet 42 74 December 25Replacement 59 20 59 70 —31, 872014. 151A320 413 Plan Source: Average Family • American American Neo Mainline —plans 10Airlines Age 25to65 (yrs) have 100 1311.1 one B737-800 of 10.3 the9.9 youngest 1810.1 20 20 CRJ-900 and — 58 most B737-8 18fuel 20 ——38 efficient Max —ERJ fle
Slide 14: Airbus A319 Operators and Characteristics
Airbus8Operator frequency DFW) 2.9% Delivered undisclosed A319-100 China 1,433 markets customers. Southern # •of Backlog •118 Aircraft Aircraft Source: Airlines currently 93of %#choice Airbus 140 Inin Easy Service 2.8% American for 14 Jet9American 151 Air 1,425 and Canada 10.6% #US ofinCustomers Air
Slide 15: Boeing 737-800 and 787-8 Overview
Boeing 737-800 800 America, 2010operates 2011 737-800 accounts the 2012 out Caribbean 2013 •ofToday, for every more 2014 and the legacy domestic 2015 the 737-800 northern American 2016ASMs is2017 the rim hub than workhorse 2018 of to South the most Source: MD-80 America of major the American and Ame
Slide 16: Range of 737-800, 787-8 and 777-300ER
Range 386 Panama similar three-class of range City Boeing 162 Source: passengers 737-800, three-class Boeing Anchorage 787-8 passengers 16 and 777-300ER 787-8(2) Cape Town Lagos Aircraft Sydney 227,930-kg from Lima DFWRio (502,500-lb) Mumbai De Janeiro Dubai MTOW Auckland Hong NewKong Buenos YorkSha
Slide 17: Embraer ERJ 175 LR Overview
ERJ 5 0 5 0175 Skywest Belavia LR: 47 an 2232aircraft 24 0 Compass Unannounced with Airlines an established commercial 36 36 0and ECC customer growing Leasing 6installed 0161TOTAL 0 LOT basePolish 377 Firm223 Order 12154 12Operator 076United Passengers Orders Airlines Total Delivered 30 12 19 First
Slide 18: American Airlines Group Business Overview
American Airlines Group Business Overview
Slide 19: American Airlines Group Business Overview
American Integration the liquidity—Raised repurchase—Announced US 3 Includes director AirwaysAirlines 34 going and Group, aircraft those smoothly $3.3 Group ordelivered with US billion $2 Business Airways, ratified so billion of far toattractive and AAG’s JCBAs Overview share Inc. teams 1repurchase
Slide 20: Integration and labor update
Integration and our waybill 14,000 Dividend 1 APFA mainline Update Miles® stands • pilots Co-located members for Association • Reached •atReached 75% a of 10-year ofProfessional the a five-year airports agreement JCBA where Flight with with American Attendants; pilots the APFA1 atAirlines Envoy 2 AP
Slide 21: Investments in Our Product
Investments power Class—Main outletsinCabin and OurUSB Product Extra power—Walk-up seating—AC • Improved check-in power bar—Enhanced outlets areasand • Narrowbody in-seat USB power—Personal entertainment—Main standardization in-seat • Widebody Cabin entertainment Extra aircraft seating 21retrofits—N
Slide 22: Global Network with Strong Domestic Position
Global Los #3 #1 Angeles, #1 Network LatinMiami, America with New Strong 17%York, Domestic Domestic Philadelphia, Exposure 65% Source: Phoenix • AAG AAGand operates filings; Washington, anAAG average reports D.C of Domestic nearly and Diio 6,700 Regional 22 flights Position per dayGlobal to 339Regio
Slide 23: Expanding Our Asian Network
Expanding Kong 23 our Asian Network New Routes Added 2014: DFW-HKG ORD DFW DFW ORD DFW-PVG Beijing DFW Seoul Tokyo LAX LAX ORD 2015: DFW Shanghai DFW-PEK DFW Hong
Slide 24: Retrofit Plan
Retrofit Configuration Boeing with aircraft ouris 218 Plan retrofit configured 209 • Number Weprojects? 25are 2Qwith retrofitting 767-300 of Aircraft 348 seats Seats our Expected Type inaircraft Seats* select Boeing Completion Aircraft markets to 160 add 160 seats 2015 24 Up Boeing and *toThe bring
Slide 25: Financial Update
American Airlines “¢ Group . Financial Update
Slide 26: 2014 Was a Successful Year
2014(cents)1 fuel financials was a1 Successful Please 8.67 8.63 referYear 8.46 to the PF2012 Total GAAP adjusted PF2013 to non-GAAP operating FY2014reconciliation revenue PF2012($mm)1 PF2013 in the PRASM FY2014 Appendix. (cents)1 Source: 26 AAG 13.97filings; 13.67 13.33 PF2012 $42,650 and PF2013 $40
Slide 27: 2014 Consolidated PRASM
2014 Consolidated 5.1% 3.0% 2.3% 2.2% PRASM 1.6%•0.2% AAG’s Source: 2014 AAG PRASM filings growth 1 Please was in refer linetowith the its GAAPpeers. to We non-GAAP expect toreconciliation see PRASM improve in the Appendix. as the integration 27 progresses 2014 YOY Change in Consolidated PRASM1
Slide 28: 2014 Mainline CASM
2014 Mainline items) 4.0% 3.5% CASM 3.1%• 2.0% Mainline 0.9%CASM -1.2%excluding Source: AAG fuel and filings special 1 Please items refer wastoupthe 2%GAAP YOY,toprimarily non-GAAPdue reconciliation to increased labor in thecosts Appendix. 2014 YOY 28 Change in Mainline CASM1 (excluding fuel and spe
Slide 29: 2014 Pretax Margin
2014 Pretax Margin1 Appendix. (pts) 29Margin (ex special • AAG’s items) pretax (ex special margin items) is already 17.2% in line 4.7 with 4.4 4.2 our12.0% peers.11.2% For 2015 9.8% we2.4 expect 6.6%to5.1% have1.5 the1.4 highest Source: pretax AAG margin filings of1the Please network refercarriers t
Slide 30: 2014 Relative Liquidity
2014 Relative 22.0% 14.7% 12.8% Liquidity Source: • We AAG have afilings solid relative 1 Includes liquidity cash, short-term position allowing investments, us to better restricted manage cash business and available and integration undrawn credit risk Total facilities Liquidity1 as of 12/31/2014 as
Slide 31: Attractive credit markets
Attractive credit of 31 4.4%markets 2014-1 financing Aircraft EETC transactions $957 Debt & Million Lease haveSenior Repurchases lowered Unsecured overall $1.2cost $750 Billion ofMillion liquidity Pension Term 7.5% Pre-funding Loan Sr. Secured ….while $600Notes also Million paying $1 $3.4 billion do
Slide 32: Appendix
. s . ~ AmericanAirlines @ Group . Appendix
Slide 33: Reconciliation of GAAP to non-GAAP measures
Reconciliation December Combined 2,523 148 items, (loss) Passenger the Equipment 850 (1,876) 1,321 net998 (2,208) load 31, Operating 3,844 1,399 637 December of Notes factor GAAP 0(1,239) 2,709 1,180 (2,208) revenues: are (percent) 1,338 to obligations December 2,579 (1,834) non-GAAP (2,655) 4,047 8
Slide 34: Reconciliation (cont'd)
Reconciliation 2013 revenues before operating as (a) $1,222 0 13,676 obligations 0adjusted /0(b) 8,income (29) $972 40,388 2013 (0.5%) excluding revenues special (29) for of$2,195 2013 AAG, taxes 42,650 of special 03.9% Net items, GAAP American as special $4,168 as US income 1.1% adjusted %items rep
Slide 35: Reconciliation (cont'd)
Reconciliation 2013 ASM 3,131 Passenger as (2,016) (386) (a) (b)reported $13,588 —8, (34) ($mm; 3,145 8.67 (2,219) 2013 revenue (420) $24,707 —$6,075 6,275 per 2013 8.46 of (4,235) (559) ASM GAAP 6,322 per American $19,663 8.63 $12,915 ASM (138) figures (2,206) Note: Total to non-GAAP $13,620 (cents
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