American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q1 2023 Earnings Presentation
19 slides from American Airlines's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Financial Results
Slide 2: Forward-looking statements
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.
Slide 3: Introductory remarks and commercial update
Introductory remarks and commercial update 3
Slide 4: 2023 on track with strong first quarter
2023 on track with strong first quarter • Net income in the first quarter of $10 million. Excluding net special items1, net income of $33 million • Record first-quarter revenue and record quarterly free cash flow generation1 of $3.0 billion • Operated more than 476,000 flights in the quarter, with a
Slide 5: Loyalty program remains strong
Loyalty program remains strong • American’s AAdvantage loyalty and travel rewards program continues to grow, with enrollments up ~60% vs. 1Q19 New loyalty member accounts ~ 60% vs. 1Q19 1Q 19 1Q 23 5
Slide 6: 2Q 2023 capacity growth mix
2Q 2023 capacity growth mix • More than 80% of American’s 2Q23 year-over-year capacity growth is driven by restoring its long-haul international network and boosting utilization of its widebody aircraft assets Contribution to 2Q23 y/y capacity 1 growth 82% 18% Domestic & Short-haul international Lon
Slide 7: Financial update
Financial update 7
Slide 8: First-quarter results
First-quarter results GAAP Non-GAAP 1 (in millions, except share and per share amounts) 1Q23 1Q22 1Q23 1Q22 Operating Income (Loss) $438 ($1,723) $451 ($1,566) Income (Loss) Before Income Taxes $17 ($2,086) $45 ($1,926) Net Income (Loss) $10 ($1,635) $33 ($1,510) Earnings (Loss) per common share: Ba
Slide 9: Limited capex and debt maturities support deleveraging
Limited capex and debt maturities support deleveraging • Manufacturer delivery delays have pushed aircraft capex requirements to outer years Limited maturities minimize refi risk Younger fleet drives lower capex Debt payments1 Total capex forecast 2 (in billions) (in billions) $5.2 $3.8 $3.7 $3.3 $2
Slide 10: Deleveraging progress continues…
Deleveraging progress continues… • On track to reduce total debt1 from peak levels by $10 to $11 billion by the end of 2023 ($ in billions) Total Debt 1 Reduction 54 Peak (0.8) (1.0) (1.2) ~(3.5) ~10 - 11B ~(4.0) ~43 - 44 2Q 2021 2019 Spare Parts LGA/DCA Amortizing Lease & YE 2023E Total Debt Unsecu
Slide 11: …and credit ratios are improving
…and credit ratios are improving • 1Q23 ending net debt1 to adjusted EBITDAR 2 ratio of 4.5x, the lowest level since year-end 2019 • Long-term target of BB credit rating would be supported by the completion of our debt-reduction goal and continued earnings strength Net Debt 1/Adj. EBITDAR 2 Over Tim
Slide 12: Second-quarter and full-year outlook
Second-quarter and full-year outlook 2Q2023 FY2023 Total capacity (ASMs) (vs. 2022) ~+3.5% to +5.5% ~+5% to +8% TRASM (vs. 2022) ~ - 2% to - 4% CASM-ex1, 2 (vs. 2022) ~+3.5% to +5.5% Fuel ($/gallon)3 ~$2.65 to $2.75 Adjusted operating margin1 ~11% to 13% Adjusted earnings per diluted share1 ~$1.20 t
Slide 13: Visit our new Robert L. Crandall Campus website
Visit our new Robert L. Crandall Campus website at aa.com/campus
Slide 14: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 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 accordance w
Slide 15: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 3 Months Ended Percent March 31, Increase Reconciliation of Operating Income (Loss) Excluding Net Special Items 2023 2022 (Decrease) (in millions) Operating income (loss) as reported $ 438 $ (1,723) Operating net special items: Mainline operating special items, net (1
Slide 16: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 3 Months Ended Percent March 31, Increase Reconciliation of Net Income (Loss) Excluding Net Special Items 2023 2022 (Decrease) (in millions, except share and per share amounts) Net income (loss) as reported $ 10 $ (1,635) Net special items: Total pre-tax net special i
Slide 17: Free Cash Flow reconciliation
Free Cash Flow reconciliation The Company's free cash flow summary is presented in the table below, which is a non-GAAP measure that management believes is useful information to investors and others in evaluating the Company's ability to generate cash from its core operating performance that is avai
Slide 18: Net Debt/Adj. EBITDAR reconciliation
Net Debt/Adj. EBITDAR reconciliation The Company's ratio of net debt to adjusted EBITDAR is presented below, which is a non-GAAP measure that management believes is an indicator of the Company's level of indebtedness and ability to service such debt, and which may also provide useful information to
Slide 19: American Airlines
American®, Airlines
American Airlines Group — Q1 2023 Earnings Presentation on 6ix