American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q3 2021 Earnings Presentation
21 slides from American Airlines's earnings presentation, Oct 21, 2021
Slide 1: American Airlines Group Inc. Third-Quarter 2021 Financial Results
American Airlines Group Inc. Third-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: Third-quarter results
Third-quarter results 4 Third-quarter results show strong improvement • Total revenue increased by 20% from 2Q21 on 12% increase in capacity • Third-quarter net income of $169 million • Excluding net special items1, net loss of $641 million – smallest loss since pandemic began Key accomplishments •
Slide 5: Thanks to an amazing team
Thanks to an amazing team
Slide 6: Commercial update
6 Commercial update Robert Isom President
Slide 7: Recovery timeline
Recovery timeline • Domestic leisure and short-haul international have fully recovered. • Domestic business revenue recovered to ~50% of 2019 levels in the third quarter. Long-haul international traffic is showing meaningful signs of recovery; supported by recent announcement about reopening travel
Slide 8: Revenue recovery
Revenue recovery 8 1/ Source- company monthly domestic coupon revenue results • The revenue recovery took a pause in the third quarter due to the delta variant of COVID-19, which drove a decline in business demand. • Fourth quarter revenue is expected to improve, supported by strong peak holiday dem
Slide 9: AAdvantage program relevance remains robust
AAdvantage program relevance remains robust 9 • From an absolute basis, new member acquisitions in 2021 have outpaced 2019 despite lower levels of capacity. • 2021 program revenues have also closed in on 2019 revenues. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Member acquisitions (new accounts
Slide 10: Financial update
10 Financial update Derek Kerr Chief Financial Officer
Slide 11: Third-quarter results
Third-quarter results 11 Note: May not recalculate due to rounding. 3Q21 3Q20 3Q21 3Q20 Operating Income (Loss) 595$ (2,871)$ (462)$ (3,390)$ Income (Loss) Before Income Taxes 206$ (3,095)$ (833)$ (3,635)$ Net Income (Loss) 169$ (2,399)$ (641)$ (2,818)$ Earnings (loss) per common share: Basic 0.26$
Slide 12: Strong liquidity position
$7 $10 $14 $14 $17 $21 $18 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Total available liquidity1 (in billions) Strong liquidity position 12 • Ended 3Q21 with approximately $18 billion of total available liquidity, including the impact of pre-paying $950 million spare parts term loan. 1/ Total available liqu
Slide 13: Balance sheet repair
Balance sheet repair 13 Accelerated deleveraging • Company has $13 billion of prepayable debt • Prepaid $950 million of spare parts term loan • Continue to target $15 billion in debt reduction by end of 2025 Future priorities for excess liquidity • Pay down prepayable debt (~30% of total debt) • Fre
Slide 14: Youngest fleet of the network airlines
Youngest fleet of the network airlines 1/ Source: Company filing and Cirium Fleets Analyzer database. 14 Mainline fleet breakdown by age1 • 57% of American’s fleet is 10 years old or younger • Future fleet replacement needs are lower than peers • Existing financings completed at very attractive leve
Slide 15: Passionately pursuing efficiencies
Passionately pursuing efficiencies Younger fleet drives lower capex 1/ Source: Company filings, 2021 includes net inflows from return of PDPs 15 Fleet harmonization $5.2 $2.0 $0.0 $2.6 $2.6 ~$3.0 2014-2019 Average 2020 Actual 2021 2022 2023 Steady State Total capex forecast1 (in billions) 41% 88% 10
Slide 16: Investing in the future
Investing in the future 16 • Breakthrough Energy Catalyst • Become an anchor partner to Breakthrough Energy Catalyst • $100 million commitment to accelerate the clean energy technologies necessary for achieving a net zero economy by 2050 • New and enhanced partnerships • Announced new codeshare agre
Slide 17: 4Q21 outlook
4Q21 outlook 17 4Q21 vs 4Q19 Total Capacity (ASMs) ~ -11% to -13% Total Revenue ~ -20% CASM excluding fuel and net special items1 ~ +8% to +10% 4Q21 4Q21 comments Fuel $2.43 to $2.48 / gal Based on October 18, 2021 forward curve and planned consumption of ~970 million gallons Pretax margin excluding
Slide 18: Slide 18
Slide 19: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 19 Reconciliation of GAAP Financial Information to Non-GAAP Financial Information Percent Increase Percent Increase Reconciliation of Pre-Tax Loss Excluding Net Special Items 2021 2020 (Decrease) 2021 2020 (Decrease) Pre-tax income (loss) as reported 206$ (3,095)$ (1,
Slide 20: 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 595$ (2,871)$ (279)$ (7,906)$ Operating net special items: Mainline operating special items, net (1) (990) (295) (3,986) (657) Regional operating speci
Slide 21: American Airlines
American®. Airlines
American Airlines Group — Q3 2021 Earnings Presentation on 6ix