American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — IPO Roadshow (January 2016)
34 slides from American Airlines's IPO roadshow presentation, Jan 12, 2016
Slide 1: American Airlines, Inc. Series 2016-1 EETC Investor Presentation
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-194685-01 January 12, 2016 American Airlines, Inc. Series 2016-1 EETC Investor Presentation January 2016
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary This “expect,” similar “Company”) statements and events of alliances substantial its employment materially impact airports; operators third-party Company’s model conflicts government systems; aircraft dependence behavior potential with Company any directors limit repurchase Carryforwards
Slide 3: Issuer free writing prospectus notice
This Investor filed documents Alternatively, a registration thePresentation the issuer issuer, statement hasany filed highlights (including underwriter with the basic SEC a or prospectus) information any for more dealerwith complete participating about thethe SEC information issuer for in the the an
Slide 4: 2016-1 EETC Offering
2016-1 EETC Offering
Slide 5: 2016-1 EETC Offering Summary
American Class delivered aircraft fleet AA, Class Joint AA: delivered from 2016-1 Structuring A $447,631,000 and September Class in EETC April Agents B5Class Certificates: 2015 2014 American and A: and toLead $200,859,000 June September Airlines, KfW Bookrunners: 2015IPEX-Bank Six Inc. 2015 Class (6
Slide 6: Structural Summary of Certificates
2016-1 on months /Class January 72.6% theAA Final EETC after Weighted 15, Class 2028 Expected the Structural AFinal January Class Average Distribution Expected BSummary 15, Face Life 2024 Amount 9.0 Distribution Date 1Final years Initial for $447,631,000 Legal 9.0Loan the Date years Distribution rel
Slide 7: Certificate Structure and Waterfall
American interest Certificates such Default delivered is expected subordinated payments • The (September 2016-1 to is Equipment be paid sufficient Waterfall isCertificates ahead structured 2014Notes ofto through •principal Interest cover at similar will parDecember up be plus on on to to cross-colla
Slide 8: Overview of the Collateral Pool
Overview of the Collateral Pool
Slide 9: Attractive Collateral Pool
Attractive Morten maintenance first Type Narrow 6427 200 A321-200 52,018,243 46,500,000 47,000,000 50,280,000 Oct-15 502,500 Assumed 6490 regular Manufacturer’s N917UY 161,920,000 Beyer V2533-A5 Sep-15 Total N920US Aircraft 6543 9distribution 46,503,477 46,690,000 47,000,000 adjusted A321-200 &Narro
Slide 10: Young and Diversified Portfolio
By Dec-14 65% 14 Aircraft Widebody Jan-15 Type35% (% Feb-15 of A321-200 base Mar-15 value)1 40% Apr-15 By 737-800 Delivery May-15 25%Date: Jun-15 787-8 0.621% Jul-15 Years 777-300ER Aug-15 AverageSep-15 Age1,2 14% 4.3% Oct-15 By Body 8.9% Nov-15 Type 9.0%Dec-15 (% 13.6% of base A321-200 4.6%value)1
Slide 11: Collateral Importance to American
Collateral current Importance Asia-Pacific currently cost American: airline carriers fleets fleet inAircraft •to American’s 304 (1000+), (LCCs); and • American: Brings currently Middle Assessment athe 80+ favorite fleet/on East long • operators in 219 American’s •range Source: currently Has with ord
Slide 12: American has one of the most modern and fuel-efficient fleets
American 2016 55 622017 35 51 has 2018 135 one338 2019 of 12 the 2020 American most & modern Beyond Airlines and Totalfuel-efficient Mainline A320 Family Order fleets 25 Book: 20 in 45 theA320 industry NEO The Family Selected 25 75 Aircraft 100 A350 PlayXWB an Integral 6 10 6Role 22 737 in American’
Slide 13: Airbus A321-200 Operators and Orders
Airbus Firm Turkish Aviation 150-seaters; Orders A321-200 Airlines Capital provides 1,500+ (THY) Group Source: # more Delivered 31 68Ascend 2.0% 4.5% capacity ~1,150 Total 4Market Lufthansa at 1,515 slot-constrained # Commentary Backlog 100.0% 64 4.2% 350+ The 5airports and Air #A321-200 InAirbus Ch
Slide 14: Airbus A321 Orders and Deliveries
Airbus orders the deliveries and A321-200 1,150+ within Source: deliveries the A320 Airbus • Accounts Family 14 The in for 2012, Airbus 21%2014, A321 of A320 2015 is the Family and best-selling 2016, Salesrespectively asaircraft of Oct-15 in•its Large and class 30% single-aisle A321 of total A321 Ai
Slide 15: Airbus A321-200 Range Map (from DFW)
Airbus A321-200 Range Map (from DFW) Source: American, Airbus as of August 2015. 15
Slide 16: Boeing 737-800 Operators and Orders
• Order such current Operators 2%AerCap 1 Ryanair as fleet, longer backlog 275 & 482 Lessors backlog, 5.8% maintenance of10.2% 1,100 3(In SMBC and2Service demonstrates American itsintervals, AC success / 175 OnAirlines with Order) new 3.7% thatspace-saving both this 4304 Key BBAM remains lessors 6.4
Slide 17: 737-800 Fleet Deployment
• Today, the regional accounts Deployment projections. fleet for 737-800 aChange combined significant in is the Fleet • portion Over workhorse Size theof of last hub-to-hub the of decade, 737-800 the American the flying NGs1 737-800 In fleet, 152 addition, has 169 accounting replaced 195 the226 flee
Slide 18: Boeing 777-300ER and 787-8 Operators
Operators bestselling The Source: Characteristics 318 100.0% Lease #Boeing of Corporation Ascend Lessors Customers #wide-body of 787Aircraft Firm Market #delivers of 4957 Orders Aircraft 4.5% variant #% Commentary up of1 All Current 3782 to% CIT to20% Nippon 1#date; GECAS Aerospace Delivered better
Slide 19: Range of Boeing 737-800, 777-300ER and 787-8
Range of Boeing (502,500-lb) MTOW 737-800, 242 three-class 787-8 and passengers 777-300ER737-800 Aircraft70,010-kg Source: Boeing (158,500-lb) 1 777-300ER MTOWand 162787-8 three-class have similar passengers range. 19 777-300ER1 351,530-kg (700,000-lb) MTOW 386 three-class passengers 787-81 227,930-
Slide 20: American Airlines Group Corporate Update
American Airlines Group Corporate Update
Slide 21: 2015 Third Quarter Highlights
2015 Third special quarterly Baker mainline Announced Integrated items. aircraft profit Quarter newPlease in$2.0 -Operations Company 15Highlights refer new billion regional to history Center share thefor Company’s American repurchase aircraft, - Reached Recordretired/parked reconciliation Airlines p
Slide 22: Q3 and YTD Pre-tax Margin
Q3 and YOY 11.0 7.9 Pre-tax YTD 7.3 7.2 Pre-Tax Margin 6.5 2.7 (ex Margin 3Q15 special YTD Source: items) YOY Company (pts) Pre-tax 29.2% reports. Margin 19.7% Excludes (ex19.3% special 19.1% netitems) special 17.7% (pts) items. American’s 16.6% Please 3Q15refer third Pre-tax toquarter theMargin Com
Slide 23: Earnings driven by lower fuel expense
Earnings information $100 $120Growth Brent below. Crude Driven 23 The Oil ByCompany ($/bbl) Lower$1.67 Fuel has Expense derived $1.80 $1.82 significant Source: $1.85 Bloomberg, $1.97 benefit$2.20 from Company 3Q its Economic non-hedging reportsFuel 1Pre-tax strategy Price earnings ($/gal) - 3Q Pre-t
Slide 24: Liquidity Position
The Company held cash)inasVenezuelan of September had $11.4 bolivars. 30,billion1 2015, Please plus in refer available available to theliquidity, undrawn Company’sorrevolver 27.4% Quarterly of capacity last Report 12atmonths’ that on Form date. revenues, 10-Q 24 27.4% foratthe the 27.1% period end 2
Slide 25: Uses of Cash
Uses of Cash Source: American 25 Our cash position will allow us to Integrate the airline Invest in our operation and our product Pay down debt that is more expensive than our current cost of debt Return capital to shareholders
Slide 26: Integration Update
Integration Robert bargaining W. Baker agreement Update Integrated Source: applicable American Operations to passenger 26Center Achieved service Reached a successful employees a tentative passenger Introduced agreement service bag with tracking system the Communications cutover technology, - Day all
Slide 27: Investing in Operation
Investing Over expenditures 200 In new Our - employees Investment Operationin inSource: planning, new ground American supply support chain 27 Operational equipment and quality - mindset Investment control- -focus Over in new on: 300bag - new On-time handling employees departures technology in line -
Slide 28: American Baggage and On-Time Performance
American 65 Baggage1 75 85 1Q Performance 2Q 3Q Percent Showing 2015Improvement On-Time Arrivals Source: 96.4 American 98.9 99.31Mishandled 90 95 100 1Q Baggage 2Q 3Q Rate Percent (“MBR”) 2015 Completion is through August Factor 4.64 2015.3.95 28 61.3 3.80 65.1 1.00 66.4 3.00 50 5.00 601Q 70 2Q 1Q 3
Slide 29: Investing in Our Product
Announced cabins Our Product on new $2.0 Source: andbillion retrofitted American in additional aircraft 29 customer - Enhanced experience in-seat entertainment improvements- Main Aircraft Cabin retrofits Extra-seating Fully lie-flat Airportsseats - Improved on the entire and updated long-haul, kiosk
Slide 30: Fleet Replacement and Average Fleet Age
14.0 yrs Plan Source: 9.6 yrs SEC16.8 Form yrs 10-K 16.3 yrs and13.3 Ascend yrs 14.9 Fleets yrsdata 10.4base; yrs 12.1 projected yrs 8 data 13 18based 2012on 2013 internal 2014Industry 2015E 2016E fleet plan 2017E outlook Yearsestimates. Average Fleet 30 Age Building one of the youngest and most fue
Slide 31: Paying Down Debt
Paying Down Debt Source: American Note: Items may not calculate due to rounding. 31 American Airlines Group has paid down approximately $3.6 billion in high-cost debt since the merger closed in December 2013
Slide 32: Appendix
Appendix
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Information
Reconciliation Income 35 Margin items special September Regional 17.7% items, Excluding Taxes 30, operating 11.0% net Excluding 92015. ofMonths GAAP 2Special 216.0% 1The 2special 0 Ended Financial Percent 7 Items Certificates 9.5% Nonoperating items, September Income Reconciliation Change Informatio
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