American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — IPO Roadshow (October 2021)
27 slides from American Airlines's IPO roadshow presentation, Oct 25, 2021
Slide 1: American Airlines, Inc. Pass Through Certificates, Series 2021-1 Investor Presentation
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-236503-01 October 25, 2021 American Airlines, Inc. Pass Through Certificates, Series 2021-1 Investor Presentation October 25, 2021 1Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-2365
Slide 2: Cautionary Statement Regarding Forward-Looking Statements and Information
Cautionary Statement Regarding Forward-Looking Statements and Information AmericanAirlines Group Inc. and its direct wholly-owned subsidiary AmericanAirlines, Inc. are collectively referred to herein as the Company”. This document includes forward-looking statements within the meaning of the Private
Slide 3: 1. EETC Overview
1. EETC Overview1. EETC Overview
Slide 4: Transaction Overview
Transaction Overview • American Airlines, Inc. (“American”) intends to raise $591,913,000 through the offering of Pass Through Enhanced Equipment Trust Certificates, Series 2021-1A (the “Certificates”) • The Equipment Notes underlying the Certificates will have the benefit of a security interest in
Slide 5: 2021-1 EETC Structural Summary
2021-1 EETC Structural Summary Class A Initial Face Amount $591,913,000 Ratings Baa1 / A- / A (Moodys / S&P / Fitch) 1 Initial LTV / Maximum LTV 54.0% / 54.0% Expected Tenor 12.7 years Weighted Average Life 9.0 years Regular Distribution Dates January 11 and July 11 2 Final Expected Distribution Dat
Slide 6: Key Structural Elements
Key Structural Elements Cross-Collateralization and Cross-Default • The Equipment Notes will be cross-collateralized by all aircraft • All indentures will include cross-default provisions Buyout Rights • After a Certificate Buyout Event, subordinate Certificate holders have the right to purchase all
Slide 7: 2. Company Update
2. Company Update2. Company Update
Slide 8: American Airlines at a Glance
Confidential American Airlines at a Glance $3.4bn Domestic Hub Locations $17.9bn Undrawn Revolver Q3 2021 Ending Liquidity Capacity Fully Available Chicago, IL New York, NY Philadelphia, PA Washington, D.C. ~$8.4bn ~$3.8bn Los Angeles, CA Available First Lien Capacity 1 Dallas / Fort Worth, TX Unenc
Slide 9: American Airlines Credit Strengths
Confidential American Airlines Credit Strengths AA Liquidity • Commenced deleveraging actions, prepaying $950M spare parts term loan (April 2023 maturity) and $21.3B $17.9B the airline’s targeting best credit metrics since merger by 2025 Proactive Balance $17.3B $14.3B • Robust liquidity position pr
Slide 10: Strong Liquidity Position
Confidential Strong Liquidity Position • American has had a long standing view that a robust liquidity balance should be maintained to ensure the Company could sustain a substantial shock in light of the Company’s debt position • Since the start of the COVID pandemic, the Company has bolstered liqui
Slide 11: Clear Path to Deleveraging
Confidential Clear Path to Deleveraging • American is committed to repay ~$15bn+ of total debt over the next five years 2 between scheduled amortization (net of new financings) and discretionary Debt Profile ($M) prepayments 30% of long term debt is Over three quarters of AA long • Balance sheet del
Slide 12: Recovery Timeline
Confidential Recovery Timeline 2019 Revenue Components • Domestic leisure and short-haul international have fully recovered Domestic Leisure 20% • Long-haul international traffic is showing meaningful signs of 45% Short-Haul Intl recovery; supported by recent re-opening announcement of US 25% bound
Slide 13: Revenue Performance vs. OAL
Confidential Revenue Performance vs. OAL Point of Strength • Despite significant challenges associated with the Delta variant, • Four consecutive quarters of strong unit revenue performance compared to U.S. global peers. revenue continued to recover in 3Q21 Relative passenger Total revenue unit reve
Slide 14: AA's Footprint is Well Poised for Changing Travel Patterns
Confidential AA’s Footprint is Well Poised for Changing Travel Patterns 1 American’s Market Share at Top 4 Hubs Dallas / Fort Worth Charlotte Others Others 8.9% 12.9% American Hubs Alaska Hubs 91.1% 87.1% JetBlue Focus Cities Philadelphia Miami • Mid continent hubs coupled with the Company’s regiona
Slide 15: New Innovative Partnerships
Confidential New Innovative Partnerships Prior to COVID-19, American made several significant network enhancements through new codeshare agreements with GOL, Alaska Airlines and Qatar Airways. In July 2020, American announced an additional partnership with JetBlue to enhance 1 connectivity in the US
Slide 16: Our Commitment To Sustainability
Confidential Our Commitment To Sustainability • American Airlines is the first North American airline to commit to a science-based target for reducing greenhouse gas emissions by 2035, supporting its existing commitment to reach net-zero emissions by 2050 • Anchor partner to Breakthrough Energy Cata
Slide 17: Q3 2021
Q3 2021 Earnings Update • Operations: During the summer, the Company executed on the largest and fastest operational ramp-up in its history as a response to recovering demand. Despite ramp-up related challenges, the Company took several corrective actions and saw continuous improvement through the q
Slide 18: 3. Collateral Summary
3. Collateral Summary 183. Collateral Summary 18
Slide 19: Aircraft Collateral Summary – Appraisal Values
Aircraft Collateral Summary – Appraisal Values 1 Base Value Narrow / Wide / Projected Delivery Aircraft Number Aircraft Type Registration Number MSN Regional Date AISI BK mba LMM ($mm) 1 A321neo Narrowbody N444UW 10692 January 2022 $59,190,000 $62,204,930 $60,370,000 $60,370,000 2 A321neo Narrowbody
Slide 20: Collateral Breakdown
1 Collateral Breakdown Aircraft by Type Manufacturer New Deliveries / In-Service Aircraft Embraer In-service ERJ 175 LR 13% 13% 13% Airbus New A321-253NX 87% 87% 87% By Delivery Date: 0.12 Years Average Age LMM ($mm) A321-253NX E175LR $350 $300 $250 $200 $150 $100 $50 $- Oct-20 Nov-20 Dec-20 Jan-22
Slide 21: Youngest Fleet of the Network Airlines
Confidential Youngest Fleet of the Network Airlines 1. As part of American’s current initiative to right size the fleet and 1 Mainline Fleet Breakdown by Age cost structure, the Company accelerated the retirement of several mainline and regional subfleets: • 57% of American’s fleet is 10 years old o
Slide 22: Aircraft Collateral Significance to American's Fleet
Aircraft Collateral Significance to American’s Fleet 1 • The Airbus A320 aircraft family comprises the largest portion (more than 30%) of American’s fleet – Notably, Airbus A321s, both ceo and neo, comprise ~18% of American’s fleet • The Embraer ERJ 175 LR aircraft underpins American’s network strat
Slide 23: Airbus A321neo
Airbus A321neo The Airbus A321neo is the leading narrowbody type in today’s market • A321neo will continue theA320 heritage of being one of the most marketable aircraft with compelling economics at top of the single-aisle market • Offers 15% fuel savings over A321-200 and a new design standard to ac
Slide 24: A321neo is part of American's ESG strategy
A321neo is part of American’s ESG strategy 1. A321neo replacing 757-200s and A321ceo on 58 routes. 2. On average 28% CO2 saving per trip 3. Replacing 757s on these routes alone saved ~77k tonnes of CO2 Routes where A321neo 757-200 Frequencies A321neo generated CO2 CO2 (tonnes) per city pair replaced
Slide 25: Embraer ERJ LR
Embraer ERJ 175 LR • ERJ 175 LR is flying at 90% of pre-Covid levels, one of the strongest Range of Embraer ERJ 175 LR recoveries of all asset classes ‒ Only 9% are parked • American has 195 ERJ 175 LR aircraft in service and an additional 24 ERJ 175 LR aircraft on order • Only scope-compliant 70-76
Slide 26: Regional Strategy
Regional Strategy • As part of its ongoing fleet transformation initiative, AA has been investing in large regional jets that should result in an enhanced customer experience and a more efficient fleet better suited to the network • Yields in small domestic US markets that AA serves with regional ai
Slide 27: 1515
1515