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YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 3. Also on September 21, 2021, the United States Department of Transportation (DOT) published a Clarification Notice relating to the agreement that had been reached between the DOT, American, and Je...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Spirit Airlines, Inc. regarding the NEA, pending resolution of the DOJ action described above. On September 30, 2022, the DOT issued a further statement referencing the prior Clarification Notice an...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 10, 2023. The private party plaintiffs filed an amended consolidated complaint on February 3, 2023. On February 2, 2023 and February 15, 2023, private party plaintiffs filed two additional putative c...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. its subsidiaries are also engaged in other legal proceedings from time to time. Legal proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome depe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. -K for the year ended December 31, 2022 (the 2022 Form 10-K). The information contained herein is not a comprehensive discussion and analysis of the financial condition and results of operations of A...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. revenue 11,103 7,818 3,285 42.0 Cargo revenue 223 364 (141) (38.7) Other operating revenue 863 717 146 20.4 Total operating revenues 12,189 8,899 3,290 37.0 Aircraft fuel and rel...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. (2,086) 2,103 nm Income tax provision (benefit) (451) 458 nm Net income (loss) 10 (1,635) 1,645 nm Pre-tax income (loss) – GAAP 17 (2,086) 2,103 nm Adjusted for: pre-tax net specia...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. details on the components of net special items. (2) Not meaningful or greater than 100% change. Pre-Tax Income (Loss) and Net Income (Loss) Pre-tax income and net income were $17 million and $10...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. -tax net special items, was driven by the continued strength in demand for air travel and a 9.2% increase in capacity as compared to the first quarter of 2022. This resulted in higher operating reven...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 11.1 billion in the first quarter of 2023, an increase of $3.3 billion, or 42.0%, as compared to the first quarter of 2022. The increase in passenger revenue in the first quarter of 2023 was primaril...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. a 21.2% decrease in cargo ton miles driven by lower demand. Other operating revenue increased $146 million, or 20.4%, as compared to the first quarter of 2022, driven primarily by higher revenue as...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ircraft fuel expense was $3.2 billion in the first quarter of 2023, which was $665 million, or 26.6%, higher as compared to the first quarter of 2022. This increase was primarily due to a 17.3% incre...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. a decrease of 1.4%, from 13.38 cents in the first quarter of 2022. For a reconciliation of CASM to CASM excluding net special items and fuel, see “Reconciliation of GAAP to Non-GAAP Financial Meas...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. A for further information): refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. $94 million of equipment loans and other notes payable in connection with the financing of certain aircraft. Reconciliation of GAAP to Non-GAAP Financial Measures We sometimes use financial measur...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. are providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis. The following table presents the reconciliation of pre-tax income (los...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 17 (2,086) Pre-tax net special items (1): Operating special items, net 13 157 Nonoperating special items, net 15 Total pre-tax net special items 28 160 Pre-tax income (loss) excluding net ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. special items and fuel and CASM excluding net special items and fuel to evaluate our current operating performance and for period-to-period comparisons. The price of fuel, over which we have no cont...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. related taxes (3,167) (2,502) Total operating expenses, excluding net special items and fuel 8,571 7,963 Total available seat miles (ASM) 65,006 59,533 (In cents) CASM 18.08 17.84 Opera...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. items. 41 Table of Contents AAG’s Results of Operations Operating Statistics The table below sets forth selected operating data for the three months ended March 31, 2023 and 2022. Amounts may ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. enger revenue per available seat mile (cents) (e) 17.08 13.13 30.1% Total revenue per available seat mile (cents) (f) 18.75 14.95 25.4% Fuel consumption (gallons in millions) 965 894 7.9% ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. % (a) Revenue passenger mile (RPM) – A basic measure of sales volume. One RPM represents one passenger flown one mile. (b) Available seat mile (ASM) – A basic measure of production. One ASM repre...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are six mainline aircraft and 70...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2 (In millions, except percentage changes) Passenger 11,103 7,818 3,285 42.0 Cargo 223 364 (141) (38.7) Other 863 717 146 20.4 Total operating revenues 12,189 8,899 3,290 37.0 T...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. pts 20.9% 30.1% Passenger revenue increased $3.3 billion, or 42.0%, in the first quarter of 2023 from the first quarter of 2022 primarily due to a 20.9% increase in passenger yield and a 17.4% inc...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Other operating revenue increased $146 million, or 20.4%, as compared to the first quarter of 2022, driven primarily by higher revenue associated with our loyalty program. During the first quarter of...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. above. Operating Expenses Three Months Ended March 31, Increase(Decrease) PercentIncrease(Decrease) 2023 2022 (In millions, except percentage changes) Aircraft fuel and related taxes 3,167 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Depreciation and amortization 486 492 (6) (1.2) Mainline operating special items, net 13 157 (144) (91.4) Other 1,460 1,285 175 13.5 Total operating expenses 11,751 10,622 1,129 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 28 in the first quarter of 2023 from $2.80 in the first quarter of 2022, and a 7.9% increase in gallons of fuel consumed due to increased capacity. Regional expenses increased $90 million, or 8.6%, ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , or 31.8%, in the first quarter of 2023 from the first quarter of 2022 primarily due to higher credit card fees and commission expense driven by the overall increase in passenger revenues. Other op...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 8) Mainline operating special items, net 13 157 (1) Severance expenses in the first quarter of 2023 primarily included costs associated with headcount reductions in certain corporate functions. ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ) Interest income 125 117 nm Interest expense, net (540) (463) (77) 16.6 Other income (expense), net (6) 92 (98) nm Total nonoperating expense, net (421) (363) (58) 16.0 Interest ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. net special charges principally associated with debt refinancings and extinguishments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income. In t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. provision of $7 million. Substantially all of our income or loss before income taxes is attributable to the United States. See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I,...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 148 20.8 Total operating revenues 12,188 8,896 3,292 37.0 Passenger revenue increased $3.3 billion, or 42.0%, in the first quarter of 2023 from the first quarter of 2022 primarily due to an ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. %, as compared to the first quarter of 2022, driven primarily by higher revenue associated with American’s loyalty program. During the first quarter of 2023 and 2022, cash payments from co-branded cr...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 665 26.6 Salaries, wages and benefits 3,280 3,152 128 4.0 Regional expenses 1,143 1,023 120 11.8 Maintenance, materials and repairs 712 617 95 15.4 Other rent and landing fees 708 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 13.5 Total operating expenses 11,749 10,592 1,157 10.9 45 Table of Contents Significant changes in the components of American’s total operating expenses are as follows: Aircraft fuel and r...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 11.8%, in the first quarter of 2023 from the first quarter of 2022 primarily due to contractual rate increases with American’s third-party regional carriers effective subsequent to the first quarter ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. or 13.5%, in the first quarter of 2023 from the first quarter of 2022 primarily driven by the increase in flight operations, including increased costs for aircraft food and catering, crew travel, ai...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. first quarter of 2022 included a non-cash impairment charge to write down the carrying value of American’s retired Airbus A330 fleet to the estimated fair value due to the market conditions for cert...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. operating expense, net (325) (318) (7) 1.9 Interest income increased in the first quarter of 2023 compared to the first quarter of 2022 primarily as a result of higher returns on American’s shor...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of 2022, other nonoperating income, net primarily included $105 million of non-service related pension and other postretirement benefit plan income. The decrease in non-service related pension and ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes. Liquidity and Capital Resources Liquidity At March 31, 2023, AAG had $14...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2,877 3,033 2,877 3,033 Total available liquidity 14,370 11,998 14,359 11,985 In the ordinary course of our business, we or our affiliates may, at any time and from time to time, seek to p...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Our debt agreements contain customary terms and conditions as well as various affirmative, negative and financial covenants that, among other things, may restrict the ability of us and our subsidiari...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. to such agreements, if the applicable LTV, collateral coverage or peak debt service coverage ratio exceeds or falls below a specified threshold, as the case may be, we will be required, as applicabl...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. be drawn under revolving credit facilities, and our 5.50% senior secured notes due 2026, 5.75% senior secured notes due 2029 and $3.5 billion term loan facility (collectively, the AAdvantage Financi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. return to profitability. Investing Activities Our net cash used in investing activities was $2.8 billion and $771 million for the first quarter of 2023 and 2022, respectively. Our principal inves...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. for the first quarter of 2023 and 2022, respectively. Our principal financing activities in the first quarter of 2023 included $502 million in net repayments of debt and finance lease obligations. ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. secured notes in the open market. These cash outflows were offset in part by $367 million of long-term debt proceeds from the issuance of equipment notes related to enhanced equipment trust certifica...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. $2.5 billion in net purchases of short-term investments. Additionally, American had $494 million of capital expenditures, which primarily related to the purchase of two Airbus A321neo aircraft, two ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. debt and finance lease obligations. American refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 9 billion in long-term debt, including current maturities of $3.4 billion. As of March 31, 2023, American had $29.6 billion in long-term debt, including current maturities of $3.4 billion. All materi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 3 2024 2025 2026 2027 Total Airbus A320neo Family 22 29 58 Boeing 737 MAX Family 17 22 28 21 88 787 Family 11 10 33 Total 20 35 60 54 10 179 (1) Delivery schedule repres...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. as of March 31, 2023, we have committed to purchase four used Embraer 175 aircraft which are currently flown under a capacity purchase agreement with a third-party regional carrier and are already i...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2024 and beyond, except for five Boeing 787 Family aircraft scheduled to be delivered in 2024. Off-Balance Sheet Arrangements An off-balance sheet arrangement is any transaction, agreement or othe...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. as discussed in our 2022 Form 10-K. 49 Table of Contents Contractual Obligations The following table provides details of our estimated material cash requirements from contractual obligations as ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 8,400 29,609 Interest obligations (b), (c) 1,317 1,669 1,396 825 534 573 6,314 Finance lease obligations 197 201 137 113 71 93 812 Aircraft and engine purchase commitments (d) 1,24...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 835 Minimum pension obligations (g) 301 328 385 305 603 1,922 Retiree medical and other postretirement benefits 65 85 81 82 81 350 744 Other purchase obligations (h) 3,977 2,861 1,...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 176 544 1,192 Finance lease obligations 10 15 Operating lease commitments 16 15 11 10 29 86 Minimum pension obligations (g) 18 Total AAG Contractual Obligations 12,469 15,177 18,9...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 1A and 1B, respectively. (b) For variable-rate debt, future interest obligations are estimated using the current forward rates at March 31, 2023. (c) Includes $8.8 billion of future principal pa...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. for updates and revisions to such schedules communicated to management by the applicable equipment manufacturer. However, the actual delivery schedule may differ, potentially materially, based on va...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the associated rental payments will be removed from the operating lease commitments line above. (f) Represents minimum payments under capacity purchase agreements with third-party regional carrier...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. support and construction projects and excludes obligations under certain fuel offtake agreements or other agreements for which the timing of the related expenditure is uncertain, or which are subjec...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. available from operations (if any) and these sources, however, may not be sufficient to cover our cash obligations because economic factors may reduce the amount of cash generated by operations or i...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of our financing arrangements contain significant minimum cash balance or similar liquidity requirements. As a result, we cannot use all of our available cash to fund operations, capital expenditure...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. our critical accounting policies and estimates, see disclosures in the Consolidated Financial Statements and accompanying notes contained in our 2022 Form 10-K. ITEM 3. QUANTITATIVE AND QUALITATIVE...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. fuel consumption, although we review that policy from time to time based on market conditions and other factors. As such, and assuming we do not enter into any future transactions to hedge our fuel ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. not currently have a foreign currency hedge program. Generally, fluctuations in foreign currencies, including devaluations, cannot be predicted by us and can significantly affect the value of our a...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. rates due to the impact those changes have on our interest expense from variable-rate debt instruments and our interest income from short-term, interest-bearing investments. If annual interest rates...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. USD LIBOR (1-month, 3-month, 6-month, and 12-month) was subsequently extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is not possible to predict what...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. widespread acceptance as a replacement for LIBOR. It is not possible to predict the effect of these changes, other reforms or the establishment of alternative reference rates in the United Kingdom, ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status.  4. CONTROLS AND PROCEDURES Management’s Evaluation of Disclosure Controls and Procedures The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. An evaluation of the effectiveness of AAG’s and American’s disclosure controls and procedures as of March 31, 2023 was performed under the supervision and with the participation of AAG’s and America...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. no changes in AAG’s or American’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, AAG’s and American’s internal control over f...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2023. 53 Table of Contents PART II: OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. extent to which any of the risk factors below or any such new risks and uncertainties, or any combination thereof, may impact our business. Risks Related to our Business and Industry Downturns in ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the COVID-19 pandemic and associated decline in economic activity and increase in unemployment levels had a severe and prolonged effect on the global economy generally and, in turn, resulted in a pr...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. this plan. We estimate that, based on our commitments as of March 31, 2023, our planned aggregate expenditures for aircraft purchase commitments and certain engines on a consolidated basis for the r...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. pandemic; our non-investment grade credit rating; volatile or otherwise unfavorable market conditions; and the availability of assets to use as collateral for loans or other indebtedness, which has ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the domestic and global economies, the capital and credit markets’ view of our prospects and the airline industry in general, and the general availability of debt and equity capital, the financing o...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. would have a material adverse impact on our business, results of operations and financial condition. 54 Table of Contents Our high level of debt and other obligations may limit our ability to fun...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. our competitors, could have important consequences. For example, they may: make it more difficult for us to satisfy our obligations under our indebtedness; limit our ability to obtain additional f...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. businesses in which we operate, or to take advantage of opportunities that would improve our business, operations, or competitive position versus other airlines; limit our ability to withstand comp...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. if breached, result in an event of default under our indebtedness. In addition, during the COVID-19 pandemic we were required to obtain a significant amount of additional financing from a variety of...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of significant additional indebtedness or equity and could impose significant covenants and restrictions to which we are not currently subject. Moreover, as a result of the financing activities we u...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. affect our liquidity, results of operations and financial condition. Further, a substantial amount of our long-term indebtedness bears interest at fluctuating interest rates, primarily based on LIB...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. with a rapid rebound of economic activity as governments lifted restrictions and economies reopened following the COVID-19 pandemic, central banks around the world—including the U.S. Federal Reserve...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of LIBOR after 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month and 12-month) was subsequently extended by the ICE Be...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. treasury securities), we cannot currently predict the extent to which this index will gain widespread acceptance as a replacement for LIBOR. It is not possible to predict the effect of these changes...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. counterparties, or to do so on favorable terms. Additionally, the replacement of LIBOR with a comparable or successor rate could cause the amount of interest payable on our long-term debt to be diff...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. that other employers may not meet their obligations, which under certain circumstances could cause our obligations to increase. On March 29, 2019, the actuary for the IAM Pension Fund certified that...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. upon American’s mandatory adoption of a contribution schedule under the Rehabilitation Plan. The contribution schedule requires 2.5% annual increases to its contribution rate. This contribution sche...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. processing companies, under certain conditions (including, with respect to certain agreements, our failure to maintain certain levels of liquidity), to hold an amount of our cash (referred to as a h...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. imposition of holdback requirements, up to and including 100% of relevant advanced ticket sales, would materially reduce our liquidity. Likewise, other of our commercial agreements contain provision...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. recruiting people with the appropriate skills is particularly challenging as the economy in general, and the airline industry in particular, continue to recover from the COVID-19 pandemic, resulting...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , including global events that affect travel behavior, and our results of operations could be volatile and fluctuate due to seasonality. Our business, results of operations and financial condition h...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. security and environmental measures; outbreaks of diseases that affect travel behavior, such as occurred during the COVID-19 pandemic; and weather and natural disasters, including increases in fre...