American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q2 2023 Earnings Presentation
18 slides from American Airlines's earnings presentation, Jul 20, 2023
Slide 1: Second-Quarter 2023 Earnings Presentation
Exhibit 99.2 July 20,2023 ©
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 of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward- looking sta
Slide 3: Strong second-quarter results
Strong second-quarter results 3 • Record quarterly revenue of $14.1 billion • Highest-ever quarterly operating income of $2.2 billion, resulting in an operating margin of 15.4% • Second-quarter GAAP net income of $1.3 billion and net income of $1.4 billion, excluding net special items1 • Best-ever s
Slide 4: AAdvantage remains strong
2Q 2019 2Q 2023 New AAdvantage® member accounts AAdvantage® remains strong 4 • AAdvantage® continues to grow, with enrollments up 61% vs. 2Q 2019 + 61% vs. 2Q 2019
Slide 5: Capacity growth mix
Capacity growth mix 5 • Two-thirds of American’s 3Q 2023 year-over-year capacity growth is driven by restoring its long- haul international network and boosting utilization of its widebody aircraft 17% 34% 83% 66% 2Q 2023 3Q 2023E Contribution to YoY capacity1 growth Domestic & Short-haul internatio
Slide 6: Financial update
6 Financial update
Slide 7: Second-quarter results
Second-quarter results 7Note: May not recalculate due to rounding. 1. See GAAP to non-GAAP reconciliation at the end of this presentation. GAAP Non-GAAP1 (in millions, except share and per share amounts) 2Q 2023 2Q 2022 2Q 2023 2Q 2022 Operating Income $2,163 $1,017 $2,169 $1,012 Income Before Incom
Slide 8: Limited capex and debt maturities support deleveraging
Limited capex and debt maturities support deleveraging Younger fleet drives lower capex Note: May not recalculate due to rounding. 1. Source: Company filings. Debt payments include amortization and final maturity payments for debt and finance leases. 2. Source: Company filings. 2021 includes net inf
Slide 9: Deleveraging progress continues
2Q 2021 Total Debt 2019 Unsecured Spare Parts Term Loan LGA/DCA Term Loan Amortizing Debt Lease & Pension YE 2023E Total Debt (1.0) (1.2) (0.8) Deleveraging progress continues… 9 ~11B 54 Peak • On track to reduce total debt1 from peak levels by ~$11 billion by the end of 2023 ($ in billions) ~43~(4.
Slide 10: ...and credit ratios are improving
4.8x 6.7x 4.5x 3.8x ~ 4.0x 2019 2022 1Q 2023 2Q 2023 YE 2023E Net Debt1/Adj. EBITDAR2 Over Time …and credit ratios are improving 10 • Net debt1 to adjusted EBITDAR2 ratio of 3.8x at end of 2Q 2023, the lowest since year-end 2019 • Long-term target of BB credit rating would be supported by the comple
Slide 11: Third-quarter and full-year outlook
Third-quarter and full-year outlook 11 1. CASM-ex is cost per available seat mile (CASM) excluding fuel and net special items and is a non-GAAP measure. All adjusted operating margin and adjusted earnings per diluted share guidance excludes the impact of net special items and are non-GAAP measures.
Slide 12: Visit our new Robert L. Crandall Campus website
Visit our new Robert L. Crandall Campus website at aa.com/campus
Slide 13: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 13 Reconciliation of GAAP Financial Information to Non-GAAP Financial Information American Airlines Group Inc. (the Company) sometimes uses financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordanc
Slide 14: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 14 Percent Increase Percent Increase 2023 2022 (Decrease) 2023 2022 (Decrease) Operating income (loss) as reported 2,163$ 1,017$ 2,600$ (706)$ Operating net special items: Mainline operating special items, net (1) - (5) 13 152 Regional operating special items, net 6 -
Slide 15: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 15 Percent Increase Percent Increase Reconciliation of Net Income (Loss) Excluding Net Special Items 2023 2022 (Decrease) 2023 2022 (Decrease) Net income (loss) as reported 1,338$ 476$ 1,348$ (1,159)$ Net special items: Total pre-tax net special items (1), (2) 34 84 6
Slide 16: Free Cash Flow reconciliation
Free Cash Flow reconciliation 16 (in millions) 5,096$ (833) 4,263$ (1) (3,745)$ 2,931 (19) (833)$ Net cash provided by operating activities 6 Months Ended June 30, 2023 Free cash flow Adjusted net cash used in investing activities (1) The Company's free cash flow summary is presented in the table be
Slide 17: Net Debt/Adj. EBITDAR reconciliation
Net Debt/Adj. EBITDAR reconciliation 17 Adjusted EBITDAR 12/31/2019 12/31/2022 3/31/2023 6/30/2023 Operating income as reported 3,065$ 1,607$ 3,768$ 4,914$ Adjustments (1): Aircraft rent 1,355 1,400 1,390 1,389 Depreciation and amortization 2,318 2,298 2,295 2,274 Operating special items, net 641 19
Slide 18: American Airlines
American®. Airlines
American Airlines Group — Q2 2023 Earnings Presentation on 6ix