American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — J.P. Morgan Conference 2011
33 slides from American Airlines's conference presentation, Mar 1, 2011
Slide 1: J.P. Morgan Conference March 1, 2011
Beverly Goulet VP of Corporate Development & Treasurer J.P. Morgan Conference March 1, 2011
Slide 2: Safe Harbor
Safe Harbor Please note that many of our statements will constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which constitute the Company's expectations or beliefs conce
Slide 3: 2010: A Year of Progress
2010: A Year of Progress Restructured Domestic Network Launched Trans-Atlantic Joint Business with British Airways & Iberia Strengthened Japan Airlines Relationship; Trans-Pacific Joint Business Approved Expanded Alliance Relationships Accelerated Fleet Renewal Enhanced Product Offering with "Your C
Slide 4: 2006-2010 Financial Results
2006-2010 Financial Results (CHART)
Slide 5: Our Goals for 2011
Our Goals for 2011 Fly Profitably Strengthen and Defend Our Global Network Invest Wisely Earn Customer Loyalty Be a Good Place for Good People
Slide 6: Industry Capacity: 2006-2010 Domestic
Industry Capacity: 2006-2010 (CHART) Domestic Capacity Growth vs. 2006 "Note: Industry is 29 carriers including both mainline and regional partners" Source: 4Q10 earnings releases and conference calls
Slide 7: Industry Capacity: 2006-2010 International
Industry Capacity: 2006-2010 (CHART) International Capacity Growth vs. 2006 Note: Industry is 15 mainline carriers" Source: 4Q10 earnings releases and conference calls
Slide 8: 2011 Update: Capacity
2011 Update: Capacity AMR's previous capacity reductions have been significant relative to the industry Given the current trends, at this point we are planning for our consolidated capacity to be 1% lower than the previously communicated 2011 levels Our remaining capacity change continues to be driv
Slide 9: 2011 Update: Revenue
2011 Update: Revenue In January/February 2011, our Mainline & Consolidated Passenger Unit Revenue increased approximately 4.5 - 5% versus January/February 2010, reflecting: Continued yield improvement Significant capacity increases by our competitors in the Atlantic entity in 1Q11 Relatively strong
Slide 10: 2011 Update: Fuel
2011 Update: Fuel (CHART) FY2011 Hedge Portfolios as % of Est. FY2011 Fuel Consumption Source: SEC Filings Hedging Program In January 2011, AMR had approximately 35% of anticipated FY2011 consumption hedged at an average cap of $2.52 per gallon of jet fuel Primarily heating oil option and collar con
Slide 11: 2011 Update: Fleet Renewal Highlights
2011 Update: Fleet Renewal Highlights 737-800s are 35% more fuel efficient per seat than the MD-80s they replace Refurbishing existing 737-800 fleet to 160 seats (vs. 148 previously) CRJ-700s provide 2-class product in key business markets Delivery Schedule 737-800: 119 Deliveries from 2009-2012 CRJ
Slide 12: YE 2010 Cash Balances
YE 2010 Cash Balances (CHART) Cash and Equivalents % of 2010 Revenue Source: 4Q10 earnings releases; unrestricted cash and equivalents only 16% Revolving Credit Facility
Slide 13: Strengthening Our Network
Strengthening Our Network Est. $500 Million + by YE2012 Summary: Cornerstone Strategy NYC, LAX, ORD, DFW, MIA Joint Business Agreements & Antitrust Immunity British Airways / Iberia Japan Airlines Building Our Alliances & Partnerships oneworld New partnerships
Slide 14: Slide 14
Slide 15: Serving Over Destinations More Than Countries
Serving Over 400 Destinations More Than 100 Countries
Slide 16: LHR - JFK Departure Times
LHR - JFK Departure Times Local Time; LHR to JFK departures only. 8:00 10:00 12:00 14:00 16:00 18:00 20:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 Old Schedule Spring 2011 Schedule BA AA Joint Business
Slide 17: Slide 17
Slide 18: oneworld Tokyo Network
oneworld Tokyo Network
Slide 19: Slide 19
Slide 20: Premium Seats Share of Premium Capacity
Premium Seats Share of Premium Capacity (Seats) Sources: OAG Summer 2010 Schedule and Seatguru.com (CHART)
Slide 21: oneworld Hubs
oneworld Hubs 2009 CRS booking data, adjusted to carrier reported traffic. Largest Premium Airports (Premium Passengers / Day)
Slide 22: Global Alliances
Global Alliances JOINED NOV 2010 MULTI-LATERAL ATI JUL 2010 ATLANTIC JBA WITH ATI 4Q 2010 Additions to oneworld Alliance Enhanced Bilateral Agreements Progress with Joint Businesses & ATI TO JOIN 2012 TO JOIN LATE 2011 PACIFIC JBA WITH ATI SPRING 2011
Slide 23: AA Cornerstones
AA Cornerstones Source: US Census Bureau (CHART)
Slide 24: Slide 24
Slide 25: Slide 25
Slide 26: Slide 26
Slide 27: MALEV Budapest Hub
MALEV Budapest Hub
Slide 28: FINNAIR Helsinki Hub
FINNAIR Helsinki Hub
Slide 29: Slide 29
Slide 30: Cost Management
Cost Management We are intensely focused on maintaining cost discipline Our 2011 ex-fuel CASM guidance, issued in January, reflected flat ex-fuel unit cost growth for the year despite a number of headwinds, including: Increased aircraft rent expense driven by new aircraft deliveries Higher facilitie
Slide 31: Industry Labor Contracts
Contract Amendable Year Contract Amendable Year Contract Amendable Year Contract Amendable Year Contract Amendable Year Contract Amendable Year Contract Amendable Year Contract Amendable Year AA DL/NW UA CO US WN FL Pilots 2008 M 2012 2009 N 2008 N 2009 M 2012 2015 Flight Attendants 2008 M 2011 2010
Slide 32: Summary
Summary With our Cornerstone strategy, our network is focused on the biggest markets in the U.S. - NYC, LAX, ORD, DFW - and Miami, the hub of the Americas Our oneworld alliance enhances our presence in the world's top premium travel markets, and is poised to get even stronger We are making targeted
Slide 33: Slide 33