American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Raymond James 2014 Global Airline & Transportation Conference
19 slides from American Airlines's conference presentation, Nov 6, 2014
Slide 1: Raymond James 2014 Global Airline & Transportation Conference
November 6, 2014 Raymond James 2014 Global Airline & Transportation Conference Derek Kerr Chief Financial Officer American Airlines Group Inc. Exhibit 99.1
Slide 2: Introduction
Introduction Source: Company reports. * Excludes net special items. Please refer to the GAAP to non-GAAP reconciliation at the end of this document. A record breaking quarter: - Record 3Q profit* of $1.2 billion - All-time record GAAP net profit of $942 million - Record 3Q revenues: $11.1 billion -
Slide 3: Consolidated Passenger RASM
3Q Consolidated Passenger RASM Despite higher ASM growth and pressure in Latin America, American’s PRASM growth remains positive Source: Company reports
Slide 4: Mainline CASM Performance
3Q Mainline CASM Performance Despite the impact of higher labor expenses, third quarter mainline CASM excluding fuel and special items was only up 0.7% YOY Source: Company reports. Excludes net special items. Please refer to the GAAP to Non-GAAP reconciliation at the end of this document
Slide 5: Pretax Margin
3Q Pretax Margin American’s pretax margin is already in line with peers Source: Company reports. Excludes net special items. Please refer to the GAAP to Non-GAAP reconciliation at the end of this document 21.8% 14.6% 12.7% 11.0% 10.2% 8.6% 3Q14 Pretax Margin (ex special items) 5.7 pts 4.4 pts 4.1 pt
Slide 6: Total Relative Liquidity Position
Total Relative Liquidity Position American had $9.8B in available liquidity, or 23% of LTM Revenues at the end of the third quarter Source: Company reports. 1. Data includes total on balance sheet cash as of September 30, 2014 plus available undrawn revolver capacity at that date. In October 2014, A
Slide 7: Integration Update – Early Results Encouraging
Integration Update – Early Results Encouraging US Airways launched a codeshare with BA, IB, Air Berlin and Finnair, fully integrating it into the Trans- Atlantic Joint Business Agreement Announced a combined frequent flyer program for 2015 Reached a tentative agreement with the Association of Profes
Slide 8: Investments in Our Product
Investments in Our Product Improved check-in areas Narrowbody standardization Widebody aircraft retrofits A321 Transcontinental - 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 Cabi
Slide 9: Fleet Replacement Plan
2014 2015 2016 2017 2018 Beyond 2018 Total Mainline Total 84 73 60 68 59 151 495 Average Mainline Age (yrs) 12.3 11.1 10.3 9.9 10.1 Regional Total 15 39 24 12 - - 90 Fleet Replacement Plan American will have one of the most modern and fuel efficient fleets in the industry Combined AAG order book as
Slide 10: Americanantines
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Slide 11: Financing Transactions
Financing Transactions The Company has taken advantage of attractive opportunities in the credit markets At the same time, the Company has paid down higher cost debt And reduced its average cost of capital
Slide 12: Slide 12
Slide 13: 4Q Guidance Remains Unchanged from October Earnings Call
4Q Guidance Remains Unchanged from October 23 Earnings Call 4Q Outlook PRASM - 4Q PRASM expected to be approximately flat to up 2 percent - Excluding impact from Venezuela, 4Q PRASM up approximately 2 percent to 4 percent CASM Excluding Fuel & Special Items - Mainline: +2 percent to +4 percent - Reg
Slide 14: Five Imperatives
Engage our team members. Ensure they have the tools and information they need to do the jobs they perform so well. Create an environment of coordinated, collaborative teamwork and mutual respect. Provide a return for our investors. As the largest airline in the world, we should be the most profitabl
Slide 15: Conclusion
Conclusion Source: Company reports. * Excludes net special items. Please refer to the GAAP to non-GAAP reconciliation at the end of this document. A record breaking quarter: After a difficult summer, operational performance is starting to show improvements Returned $185 million to shareholders in th
Slide 16: Appendix
Slide 17: GAAP to non-GAAP Reconciliation
% Change 36% % Change 59% GAAP to non-GAAP Reconciliation American Airlines Group Inc. Combined Reconciliation of Income Before Income Taxes Excluding Special Items Income before income taxes as reported $ $ 2,645 $ $ Special items: Special items, net Regional operating special items, net (14) (9) N
Slide 18: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation % Change % Change Reconciliation of Operating Cost per ASM Excluding Special Items and Fuel - Mainline only Total operating expenses 9,879 $ 9,540 $ 29,101 $ 28,144 $ Less regional expenses: Fuel (538) (535) (1,573) (1,591) Other (1,130) (1,064) (3,346) (3,210) Total
Slide 19: Questions?
Questions?
American Airlines Group — Raymond James 2014 Global Airline & Transportation Conference on 6ix