American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — IPO Roadshow (September 2015)
34 slides from American Airlines's IPO roadshow presentation, Sep 10, 2015
Slide 1: Series 2015-2 EETC Investor Presentation
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-194685-01 September 10, 2015 Series 2015-2 September 10,EETC 2015 Investor Presentation
Slide 2: Cautionary Statements Regarding Forward-Looking Statements
Cautionary Statements This TM “expect,” similar are disruptions realizing business availability to covenants strikes compliance change any costs, industry; additional adverse countries; computer, in parts; fluctuations insurance operating Company’s delay beneficial; effect limit Q and statements not
Slide 3: Issuer free writing prospectus notice
Thisother TM The and 3Alternatively, issuer Investor documents hasPresentation the filed issuer, a the registration any issuer highlights underwriter hasstatement filed basic with orinformation (including any thedealer SEC for aparticipating about prospectus) morethecomplete issuer in with the and i
Slide 4: American Airlines Group 2015-2 EETC Offering
American Group 2015-2 EETC Airlines Airlines, Offering TM Inc.
Slide 5: American Airlines 2015-2 EETC Offering
American TM The Sole Active 51–Liquidity American Three Class Nine One For proceeds collateral Structuring Class Boeing Airbus Bookrunners: AA: A: B: Airbus Boeing Facility Airlines, 2015-2 $200,279,000 AA A expects $488,182,000 from and for 777-300ER A321-200 A319-100 Certificates: 737-800 787-8 Ag
Slide 6: Summary of Certificates
American Class TM Face Expected (Moody’s Initial Regular Final Section 621Liquidity Initial EachAmount Expected Legal AA Average LTV series 1110 Loan Distribution Ratings Facility Class /2015-2 S&P) /Distribution Maximum Protection of $488,182,000 toLife Distribution AEquipment Value Aa3 EETC 18 Cla
Slide 7: Key Structural Elements
Key American Three Collateralization All Interest Subordinated Certificates Strategically Weighted 1The 7Class AtIndentures Equipment Liquidity Structural September A Classes tranches on tranche average 2015-2 Eligible ranking core Certificateholders Facility of will Elements of Notes 24, Buy-Out Ce
Slide 8: Overview of the Collateral Pool
American Airlines Overview Group of the Collateral TM Pool
Slide 9: Aggregate Appraisals of Aircraft in Collateral Pool
Attractive Aggregate Appraisals Maintenance amortizes Aircraft Month No 876543AISI 10 11 12 13 14 15 16 17 18 19 Total Assumed 1Note: 92Beyer A319-100 A321-200 Lesser Collateral A321-200 B737-800 B777-300ER B787-8 Type BK 19 American &ofAircraft Aircraft of Agnew Serial MBA Delivery Aircraft aircraf
Slide 10: Young, Diversified Collateral Portfolio
Young A321-200 Narrow 41% Wide 29% B787-8 B777-300ER By 11% B737-800 12% 20% 25% 30% 15% 9% 13% 10% 5% 0% Feb-15 21A319-100 10 At By Aircraft Delivery 4%September 10% 4% 8% LMM and Mar-15 9% 3% 10% A321-200 59% Diversified 3% Type Base Date: 39% 4% Apr-15 3% 24, Value. (%17% 0.3 2015 of B737-800 Yea
Slide 11: Collateral: Modern, Efficient A319-100 and A321-200
Collateral Modern, A319-100 TM Good 125 MD80 Fitted Benefits A321-200 Sharklets Increasingly •Low Considered 737-800 A More Very Importance 257 Core Note: Source: 11 165 total currently storage active medium currently than Order size “hot with domestic of Ascend, from reliable (enhanced increase 150
Slide 12: Collateral: Best-selling 777-300ER and 787-8
Collateral Best-selling 777-300ER TM Popular Has None 17 Current Range 787-8 Importance American The Note: Source: 12 currently 787 787-8 become in Order ofAscend, and in storage, program family three Aircraft expects enables all to future widebody count in aregions, American: core American’s varian
Slide 13: Building a Modern Fleet: Fleet Replacement Plan
Fleet Replacement Building TM 2015 A320 A350-900 B737-800 B737-8 B777-300ER B787 Mainline Average CRJ-900 E175 Regional Note: Source: 13 2016 29 Family New American Max Mainline 24 one 25 Total 18 -2017 aircraft 12 -20 -of 620 13 2Neo 42 --54 75 10 2-3the -20 2018 825 --17 65 Age 55 44 6-13 -Plan de
Slide 14: Airbus A319-100 Aircraft and Operators
Airbus 125 TM MD-80 Aircraft Top 987654321Operator 10 91 Total Key #Firm A319 Note: Source: 14 American Air Easyjet Delta United British Germanwings China Delivered Backlog In of China other aircraft 10 Operation Customers Current Characteristics Orders Canada France in Aircraft Range A319-100 Opera
Slide 15: Airbus A321-200 Aircraft and Operators
Airbus 165 TM Benefits Increasingly Top 987654321Operator 10 76 Total Key #Firm A321 Note: Source: 15 American Air Aeroflot Turkish Vietnam Lufthansa China Sichuan Delivered Backlog In of Asiana other aircraft 10 Operation Customers Current Characteristics Orders China in Aircraft Range A321-200 Ope
Slide 16: Aircraft Range
Range 351,530-kg 777-300ER(1) TM Aircraft 386 227,930-kg 787-8(1) 242 70,010-kg 737-800 162 Hong Addis Moscow Dubai Mumbai Tokyo Shanghai Los Anchorage London Mexico DFW New Panama Auckland Sydney Lagos Buenos Lima Rio 21Cape Source: 16777-300ER Represents Angeles De three-class York Town Kong Ababa
Slide 17: Boeing 737-800 Today
Boeing Today, TM Over –The 737-800 Change 284 246 152 195 226 2010 Source: 17In 169 304 264 737-800 the addition, the 2011 the 737-800 American combined in 304 Scheduled last Fleet 737-800 2012 decade, operates theSize 2013 fleet American is Deployment of the the 2014 out type the 737-800 workhorse
Slide 18: Boeing 777-300ER and 787-8 Aircraft and Operators
Boeing 17 TM Best-selling The 34 777-300ER 987654321Operator 10 38 Total 787-8 #Firm Source: 18 AerCap All Air Aeroflot American Avianca Turkish Emirates Cathay GECAS Singapore Qatar Japan Delta Gulf Delivered Backlog of ALC Boeing LATAM other Boeing Customers Orders Nippon France India in Top Key A
Slide 19: American Airlines Group Business Overview
AmericanOverview Group Business Airlines TM Airlines, Inc.
Slide 20: Integration Continues; Investing in American
American TM Integration –Investing Source: 1Note: 20 Acquired The NetJuly Record Received In Began Inducted income Profit Certificates American negotiations began pretax in Airlines nine continues 24 single excludes our of new cutover new product margin $1.9 operating and Group mainline regional wit
Slide 21: Our Uses of Cash
Usesdown Our TM Integrate Invest Pay Source: 21 cash ofinAmerican Cash our the position debt airline operation thatwill is more allow and our expensive us product to than our current cost of debt
Slide 22: Integration Update: Notable Milestones
Integration Largest US oneworld Completed Awarded Starting World’s Zero Single Process Will Source: 22 Airways be customer Operating Frequent passenger complete Codeshare American started largest point on now Update within April and Joins for serves impact on airline Flyer American service Certifica
Slide 23: Investing in Operational Performance
Investing Operational TM Increased -Capital Source: 23 Additional Focus1,000 Improve Reduce Over Investment 200 300 expenditures on American aircraft In recruitment baggage on-time new mindset Our mechanics in newnew employees Operation out reservations handling departures ground bag of in service h
Slide 24: Investing in Aircraft and Airports
Investing Announced TM Aircraft -Airports Source: 24 AC Admirals Fully International Enhanced Main Improved power Cabin lie-flat American retrofits inClub and in-seat $2 outlets Our Extra seats Wi-Fi billion updated refurbishment Product entertainment and seating oninthe USB kiosks additional entire
Slide 25: Paying Down High-Cost Debt
Paying We Transaction 7.5% AAdvantage Aircraft Airport Total Source: 25 have $3,584 Senior Down Bonds American Leases Debt paid Amt Secured $433 $199 down Debt $898 $1,053 Paid 1/1/2017 Various TM over Various Notes Off Various $3.5B ($M) 6.748% $1,000 7.422% 6.547% in Date high-cost 3/15/2016 expec
Slide 26: American Airlines Group Financial Update
AmericanUpdate Group Financial Airlines TM Airlines, Inc.
Slide 27: Consolidated PRASM and RASM 2Q15
Consolidated 2Q15 in 1.4% jetBlue Source: 27 Consolidated -4.6% YOY Consolidated AIRWAYS American; Change -4.6% PRASM PRASM -5.3% other Southwest Passenger was airline -5.6% down Alaska RASM filings -6.9% 6.9%Air TM in UNITED the secondTM quarter due to high capacity growth, large currency devaluati
Slide 28: 2Q15 Mainline CASM excluding fuel and special items
2Q15 3.3% Mainline (excluding 4.2% jetBlue Source: 28 YOY Mainline AIRWAYS American; CASM fuel 2.7% Change and CASM excluding 2.5% other UNITED special in -0.1% TMairline items) fuel TM -3.8% filings. and Southwest special Excludes items Alaska net was Air special up 2.5items. percent Please year-ov
Slide 29: American's 2Q15 Pretax Margin
American’s 25.7% Alaska 2Q15 (ex 8.6 (pts) jetBlue Source: 29 7.4 special YOY Pretax 21.7% Air 6.2 AIRWAYS American; 4.4 items) Southwest Pretax second Margin 17.2% 3.8 1.8 Margin Alaska other quarter TM 15.5% TMairline Air jetBlue pretax 15.3% Southwest filings. margin AIRWAYS 12.7%Excludes TM of 1
Slide 30: Total Liquidity Position 2Q15
Total American 2Q15 27.3% TM 1Source: 30Data jetBlue Relative Relative 24.8% includes American; had AIRWAYS 21.8% Liquidity $11.5B Liquidity1 total other on 21.6% inAlaska balance Position airline available 16.4% Air filings sheet TMliquidity, Southwest 13.7% cash asorUNITED of27% Juneof30, LTM2015
Slide 31: Appendix
American Airlines TM Appendix Group
Slide 32: GAAP to Non-GAAP Reconciliation: Pre-Tax Income and Margin
GAAP American Calculation Income Total 3Pre-tax Reconciliation Special Regional Nonoperating Non-cash Net 1Source: 32 The Months income operating Certificates to margin items: items, before American operating non-GAAP Ended income Airlines of asspecial net Pre-Tax reported adjusted income of excludi
Slide 33: GAAP to Non-GAAP Reconciliation: Operating Expenses per ASM
3GAAP Reconciliation Less Fuel Other Total (in Special Aircraft Mainline Note: Source: 33Months millions) cents) (349) regional operating mainline Amounts (1,208) to items, American fuel operating non-GAAP Ended (535) and expenses: (1,122) net operating of expenses may June related Operating (144) p
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