American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q2 2021 Earnings Presentation
23 slides from American Airlines's earnings presentation, Jul 22, 2021
Slide 1: Second-Quarter 2021 Financial Results
American Airlines Group Inc. Second-Quarter 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, the Exchange Act and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “wi
Slide 3: Introductory remarks
3 Introductory remarks Doug Parker Chairman and Chief Executive Officer
Slide 4: Second-quarter results show great momentum
Second-quarter results 4 Second-quarter results show great momentum • Total revenue increased by 87% from 1Q21 on 44% increase in capacity • Second-quarter net income of $19 million • Excluding net special items1, net loss of $1.1 billion – smallest loss since pandemic began Key accomplishments • Fl
Slide 5: Green flag plan
Green flag plan 5 Double down on operational excellence: Best 2Q operational performance in company history1 Reconnect with our customers: Reshaped network and developed partnerships Build on team momentum: Hired 3,500 team members to support operation Passionately pursue efficiencies: Cost efficien
Slide 6: Thanks to an amazing team
Thanks to an amazing team
Slide 7: Commercial update
7 Commercial update Robert Isom President
Slide 8: Recovery timeline
Recovery timeline • Domestic leisure and short-haul international have fully recovered. • Domestic business revenue has recovered to 45% of 2019 levels and long-haul international showing first meaningful signs of improvement. 8 Domestic Leisure Revenue Recovery timeline • Particular strength in bea
Slide 9: Revenue recovery – momentum building
Revenue recovery – momentum building 9 1/ Source- Company reports • With surging demand, revenue recovered significantly in 2Q21 and these positive trends are expected to continue in 3Q21. 13.6% 26.6% 35.6% 37.9% 62.5% ~80% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21-Est. Total revenue (% of 2019)
Slide 10: Unit revenue performance
Unit revenue performance 10 1/ Source- Company reports 8.25¢ 9.60¢ 8.42¢ 12.00¢ 6.85¢ 7.38¢ 6.85¢ 11.00¢ 7.42¢ 7.85¢ 7.63¢ 11.02¢ 3Q20 4Q20 1Q21 2Q21 Relative passenger unit revenue performance (PRASM1) • Four consecutive quarters of strong unit revenue performance compared to U.S. global peers.
Slide 11: Hubs are ready
Hubs are ready 11 Dallas-Fort Worth Charlotte Washington, D.C. +19 Gates August 2021 domestic operation larger than August 2019 +4 Gates Enables 700+ daily departures +3 additional gates later in 2021 14 up-gauged gates All jet bridge, all dual class service • Major upgrades completed at key hubs.
Slide 12: Financial update
12 Financial update Derek Kerr Chief Financial Officer
Slide 13: Second-quarter results
Second-quarter results 13 Note: May not recalculate due to rounding. 2Q21 2Q20 2Q21 2Q20 Operating Income (Loss) 441$ (2,486)$ (1,014)$ (4,158)$ Income (Loss) Before Income Taxes 9$ (2,659)$ (1,409)$ (4,320)$ Net Income (Loss) 19$ (2,067)$ (1,090)$ (3,354)$ Diluted Earnings (Loss ) per Common Share
Slide 14: Strong liquidity position
$6.8 $10.2 $13.6 $14.3 $17.3 $21.3 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Total available liquidity1 (in $ billions) Strong liquidity position 14 • Ended 2Q21 with $21.3 billion of total available liquidity, a record for American. 1/ Total available liquidity is defined as unrestricted cash and marketable se
Slide 15: Balance sheet repair
Balance sheet repair 15 Accelerated deleveraging • Company has $13 billion of prepayable debt • Announced $950 million prepayment of spare parts term loan • Expect to reduce debt levels by $15 billion by end of 2025 Future priorities for excess liquidity • Pay down high-cost debt • Free up high-qual
Slide 16: Younger fleet drives lower capex
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 ($0.1) $2.6 $2.6 ~$3.0 2014-2019 Average 2020 Actual 2021 2022 2023 Steady State Total capex forecast1 (in billions) 23% 57%
Slide 17: Investing in the future
Investing in the future 17 • Vertical Aerospace • Announced investment in Vertical Aerospace, a leading U.K.-based engineering and aeronautical business developing electric vertical takeoff and landing aircraft • Net-zero by 2050 • Committed to develop a science-based target for reducing greenhouse
Slide 18: 3Q21 outlook
3Q21 outlook 18 3Q21 vs 3Q19 Total Capacity (ASMs) ~ - 15% to -20% Total Revenue ~ -20% CASM excluding fuel and net special items1 ~ +8% to +12% 3Q21 3Q21 comments Fuel $2.10 to $2.15 / gal Based on July 12, 2021 forward curve and planned consumption of ~964 million gallons Pretax margin excluding n
Slide 19: Slide 19
Slide 20: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation Reconciliation of GAAP Financial Information to Non-GAAP Financial Information Percent Increase Percent Increase Reconciliation of Pre-Tax Loss Excluding Net Special Items 2021 2020 (Decrease) 2021 2020 (Decrease) Pre-tax income (loss) as reported 9$ (2,659)$ (1,564)$
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 income (loss) as reported 441$ (2,486)$ (874)$ (5,034)$ Operating net special items: Mainline operating special items, net (1) (1,288) (1,494) (2,996) (362) Regional operating s
Slide 22: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 22 Average Daily Cash Build (Burn) 3 Months Ended June 30, 2021 (in millions, except days in period) Net cash provided by operating activities 3,470$ Net cash used in investing activities (3,883) Net cash provided by financing activities 444 Adjustments: Payroll Suppo
Slide 23: American Airlines
American®. Airlines
American Airlines Group — Q2 2021 Earnings Presentation on 6ix