American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — Q2 2024 Earnings Presentation
18 slides from American Airlines's earnings presentation, Jul 25, 2024
Slide 1: Second-Quarter 2024 Financial Results
July 25, 2024 SECOND- QUARTER 2024 FINANCIAL RESULTS American Airlines Group Inc. Exhibit 99.2
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: Second-quarter results
Second-quarter results • Record quarterly revenue of $14.3 billion. • Second-quarter net income per diluted share of $1.01. Excluding net special items1, second-quarter net income per diluted share of $1.09. • Strong second-quarter completion factor, despite significant weather disruptions. • Reduce
Slide 4: Taking action to reset our sales and distribution strategy
Taking action to reset our sales and distribution strategy 4 Ensuring our product is available wherever customers want to buy it • Returned content to the distribution channel traditionally used by travel agencies and corporate managed travel programs. • Removed plans to differentiate how customers
Slide 5: American continues to operate reliably
96.7 97.4 98.9 98.3 2019 2022 2023 2024 American continues to operate reliably • American achieved a strong second-quarter completion factor, despite significant weather disruptions. Second-quarter completion factor1 (%) 1. Combined Mainline and Regional completion factor. Excludes 2020 and 2021 as
Slide 6: 2024 capacity outlook
8.3% ~ 3.5% ~ 5% – 6% H1 2024 H2 2024E 2024E 2024 capacity outlook • American reacted quickly to the industry supply and demand imbalance and is now planning for capacity to be ~3.5% higher in the second half of 2024. YoY Capacity Growth (%) Source: Airline financials. 6
Slide 7: Financial update
Financial update
Slide 8: Second-quarter financial results
Second-quarter financial results Note: May not recalculate due to rounding. 1. See GAAP to non-GAAP reconciliation at the end of this presentation. Source: Airline financials. GAAP Non-GAAP1 (in millions, except share and per share amounts) Q2 2024 Q2 2023 Q2 2024 Q2 2023 Operating Income $1,384 $2,
Slide 9: Moderate capex profile enables balance sheet strengthening
$3.8 $1.8 $1.9 ~ $2.0 ~ $3.0 - $3.5 2014 - 2019 Avg. 2022 2023 2024E 2025E - 2030E Avg. Moderate capex profile enables balance sheet strengthening Source: Airline financials for historical data. Total aircraft capex ($ in billions) • American has limited fleet replacement needs through the end of th
Slide 10: Continued progress toward deleveraging goals
Continued progress toward deleveraging goals Note: Numbers may not recalculate due to rounding. 1. Total debt includes debt, finance and operating lease liabilities and pension obligations. Source: Airline financials. • Ongoing commitment to reduce total debt1 to $39B by YE 2025 and less than $35B b
Slide 11: Third-quarter and full-year outlook
Third-quarter and full-year outlook 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. The
Slide 12: Thank you, #AATeam
Thank you, #AATeam
Slide 13: 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 14: GAAP to non-GAAP reconciliation: Operating income
GAAP to non-GAAP reconciliation Reconciliation of Operating Income Excluding Net Special Items 3 Months Ended June 30, Percent Increase 6 Months Ended June 30, Percent Increase 2024 2023 (Decrease) 2024 2023 (Decrease) (in millions) (in millions) Operating income as reported $ 1,384 $ 2,163 $ 1,391
Slide 15: GAAP to non-GAAP reconciliation: Net income and EPS
GAAP to non-GAAP reconciliation 3 Months Ended June 30, Percent Increase 6 Months Ended June 30, Percent Increase Reconciliation of Net Income Excluding Net Special Items 2024 2023 (Decrease) 2024 2023 (Decrease) (in millions, except share and per share amounts) (in millions, except share and per sh
Slide 16: 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 17: Adjusted EBITDAR margin reconciliation
Adjusted EBITDAR margin reconciliation The Company's adjusted EBITDAR and adjusted EBITDAR margin are presented below, which are non-GAAP measures that management uses to evaluate the Company's current operating performance. These non-GAAP measures may not be comparable to similarly titled non-GAAP
Slide 18: American Airlines
American®. Airlines
American Airlines Group — Q2 2024 Earnings Presentation on 6ix