Delaware | 1-8400 | 75-1825172 | ||||||||||||
Delaware | 1-2691 | 13-1502798 | ||||||||||||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1 Skyview Drive, | Fort Worth, | Texas | 76155 | ||||||||||||||
1 Skyview Drive, | Fort Worth, | Texas | 76155 | ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
||||||||||||
Common Stock, $0.01 par value per share | AAL | The Nasdaq Global Select Market | ||||||||||||
Preferred Stock Purchase Rights | — |
(1) |
Emerging growth company | ☐ |
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
ITEM 7.01. | REGULATION FD DISCLOSURE. |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits. | ||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
104.1 | Cover page interactive data file (embedded within the Inline XBRL document). |
AMERICAN AIRLINES GROUP INC. |
|||||||||||
Date: July 20, 2023 | By: | /s/ Devon E. May | |||||||||
Devon E. May | |||||||||||
Executive Vice President and Chief Financial Officer |
AMERICAN AIRLINES, INC. |
|||||||||||
Date: July 20, 2023 | By: | /s/ Devon E. May | |||||||||
Devon E. May | |||||||||||
Executive Vice President and Chief Financial Officer |
Corporate Communications | ||||||||
mediarelations@aa.com | ||||||||
Investor Relations | ||||||||
investor.relations@aa.com |
3 Months Ended June 30, |
Percent Increase (Decrease) |
6 Months Ended June 30, |
Percent Increase (Decrease) |
||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||||||||||||||
Passenger | $ | 12,978 | $ | 12,223 | 6.2 | $ | 24,081 | $ | 20,041 | 20.2 | |||||||||||||||||||||||||
Cargo | 197 | 328 | (39.8) | 420 | 692 | (39.2) | |||||||||||||||||||||||||||||
Other | 880 | 871 | 1.1 | 1,743 | 1,588 | 9.8 | |||||||||||||||||||||||||||||
Total operating revenues | 14,055 | 13,422 | 4.7 | 26,244 | 22,321 | 17.6 | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Aircraft fuel and related taxes | 2,723 | 4,020 | (32.3) | 5,890 | 6,522 | (9.7) | |||||||||||||||||||||||||||||
Salaries, wages and benefits | 3,635 | 3,235 | 12.4 | 6,917 | 6,389 | 8.3 | |||||||||||||||||||||||||||||
Regional expenses: | |||||||||||||||||||||||||||||||||||
Regional operating expenses | 1,073 | 992 | 8.3 | 2,135 | 1,964 | 8.8 | |||||||||||||||||||||||||||||
Regional depreciation and amortization | 80 | 80 | (0.6) | 160 | 160 | — | |||||||||||||||||||||||||||||
Maintenance, materials and repairs | 808 | 647 | 24.9 | 1,520 | 1,264 | 20.3 | |||||||||||||||||||||||||||||
Other rent and landing fees | 762 | 694 | 9.8 | 1,470 | 1,372 | 7.1 | |||||||||||||||||||||||||||||
Aircraft rent | 344 | 345 | (0.4) | 688 | 698 | (1.4) | |||||||||||||||||||||||||||||
Selling expenses | 489 | 504 | (3.0) | 927 | 836 | 10.8 | |||||||||||||||||||||||||||||
Depreciation and amortization | 483 | 504 | (4.0) | 969 | 995 | (2.6) | |||||||||||||||||||||||||||||
Special items, net | — | (5) | (99.4) | 13 | 152 | (91.2) | |||||||||||||||||||||||||||||
Other | 1,495 | 1,389 | 7.6 | 2,955 | 2,675 | 10.5 | |||||||||||||||||||||||||||||
Total operating expenses | 11,892 | 12,405 | (4.1) | 23,644 | 23,027 | 2.7 | |||||||||||||||||||||||||||||
Operating income (loss) | 2,163 | 1,017 | nm | (1) |
2,600 | (706) | nm | ||||||||||||||||||||||||||||
Nonoperating income (expense): | |||||||||||||||||||||||||||||||||||
Interest income | 162 | 29 | nm | 288 | 37 | nm | |||||||||||||||||||||||||||||
Interest expense, net | (548) | (468) | 17.1 | (1,088) | (932) | 16.8 | |||||||||||||||||||||||||||||
Other income (expense), net | (14) | 25 | nm | (21) | 118 | nm | |||||||||||||||||||||||||||||
Total nonoperating expense, net | (400) | (414) | (3.4) | (821) | (777) | 5.7 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 1,763 | 603 | nm | 1,779 | (1,483) | nm | |||||||||||||||||||||||||||||
Income tax provision (benefit) | 425 | 127 | nm | 431 | (324) | nm | |||||||||||||||||||||||||||||
Net income (loss) | $ | 1,338 | $ | 476 | nm | $ | 1,348 | $ | (1,159) | nm | |||||||||||||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.05 | $ | 0.73 | $ | 2.06 | $ | (1.78) | |||||||||||||||||||||||||||
Diluted | $ | 1.88 | $ | 0.68 | $ | 1.91 | $ | (1.78) | |||||||||||||||||||||||||||
Weighted average shares outstanding (in thousands): | |||||||||||||||||||||||||||||||||||
Basic | 653,602 | 650,346 | 652,801 | 649,925 | |||||||||||||||||||||||||||||||
Diluted | 719,345 | 718,532 | 718,890 | 649,925 |
3 Months Ended June 30, |
Increase (Decrease) |
6 Months Ended June 30, |
Increase (Decrease) |
||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 60,020 | 57,516 | 4.4 % | 112,034 | 101,806 | 10.0 % | |||||||||||||||||||||||||||||
Available seat miles (ASM) (millions) | 69,658 | 66,163 | 5.3 % | 134,665 | 125,697 | 7.1 % | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 86.2 | 86.9 | (0.7) pts | 83.2 | 81.0 | 2.2 pts | |||||||||||||||||||||||||||||
Yield (cents) | 21.62 | 21.25 | 1.7 % | 21.49 | 19.69 | 9.2 % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 18.63 | 18.47 | 0.8 % | 17.88 | 15.94 | 12.2 % | |||||||||||||||||||||||||||||
Total revenue per ASM (cents) | 20.18 | 20.29 | (0.5) % | 19.49 | 17.76 | 9.7 % | |||||||||||||||||||||||||||||
Cargo ton miles (millions) | 427 | 500 | (14.7) % | 849 | 1,036 | (18.1) % | |||||||||||||||||||||||||||||
Cargo yield per ton mile (cents) | 46.31 | 65.58 | (29.4) % | 49.51 | 66.74 | (25.8) % | |||||||||||||||||||||||||||||
Fuel consumption (gallons in millions) | 1,041 | 997 | 4.4 % | 2,006 | 1,891 | 6.0 % | |||||||||||||||||||||||||||||
Average aircraft fuel price including related taxes (dollars per gallon) | 2.62 | 4.03 | (35.1) % | 2.94 | 3.45 | (14.8) % | |||||||||||||||||||||||||||||
Operating cost per ASM (cents) | 17.07 | 18.75 | (8.9) % | 17.56 | 18.32 | (4.2) % | |||||||||||||||||||||||||||||
Operating cost per ASM excluding net special items (cents) | 17.06 | 18.76 | (9.0) % | 17.54 | 18.20 | (3.6) % | |||||||||||||||||||||||||||||
Operating cost per ASM excluding net special items and fuel (cents) | 13.16 | 12.68 | 3.7 % | 13.17 | 13.01 | 1.2 % | |||||||||||||||||||||||||||||
Passenger enplanements (thousands) | 54,285 | 53,068 | 2.3 % | 102,517 | 95,790 | 7.0 % | |||||||||||||||||||||||||||||
Departures (thousands): | |||||||||||||||||||||||||||||||||||
Mainline | 289 | 260 | 11.3 % | 564 | 501 | 12.5 % | |||||||||||||||||||||||||||||
Regional | 209 | 243 | (13.9) % | 411 | 474 | (13.4) % | |||||||||||||||||||||||||||||
Total | 498 | 503 | (0.9) % | 975 | 975 | — % | |||||||||||||||||||||||||||||
Average stage length (miles): | |||||||||||||||||||||||||||||||||||
Mainline | 1,141 | 1,181 | (3.4) % | 1,132 | 1,170 | (3.2) % | |||||||||||||||||||||||||||||
Regional | 463 | 478 | (3.1) % | 466 | 481 | (3.2) % | |||||||||||||||||||||||||||||
Total | 856 | 841 | 1.8 % | 851 | 835 | 2.0 % | |||||||||||||||||||||||||||||
Aircraft at end of period: | |||||||||||||||||||||||||||||||||||
Mainline (2) |
944 | 895 | 5.5 % | 944 | 895 | 5.5 % | |||||||||||||||||||||||||||||
Regional (3) |
526 | 576 | (8.7) % | 526 | 576 | (8.7) % | |||||||||||||||||||||||||||||
Total | 1,470 | 1,471 | (0.1) % | 1,470 | 1,471 | (0.1) % | |||||||||||||||||||||||||||||
Full-time equivalent employees at end of period: | |||||||||||||||||||||||||||||||||||
Mainline | 104,400 | 102,100 | 2.3 % | 104,400 | 102,100 | 2.3 % | |||||||||||||||||||||||||||||
Regional (4) |
28,100 | 27,100 | 3.7 % | 28,100 | 27,100 | 3.7 % | |||||||||||||||||||||||||||||
Total | 132,500 | 129,200 | 2.6 % | 132,500 | 129,200 | 2.6 % |
3 Months Ended June 30, |
Increase (Decrease) |
6 Months Ended June 30, |
Increase (Decrease) |
||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Domestic (1) |
|||||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 39,758 | 39,488 | 0.7 % | 75,509 | 72,120 | 4.7 % | |||||||||||||||||||||||||||||
Available seat miles (ASM) (millions) | 45,700 | 43,948 | 4.0 % | 90,255 | 85,821 | 5.2 % | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 87.0 | 89.9 | (2.9) pts | 83.7 | 84.0 | (0.3) pts | |||||||||||||||||||||||||||||
Passenger revenue (dollars in millions) | 9,195 | 9,120 | 0.8 % | 17,232 | 15,180 | 13.5 % | |||||||||||||||||||||||||||||
Yield (cents) | 23.13 | 23.10 | 0.1 % | 22.82 | 21.05 | 8.4 % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 20.12 | 20.75 | (3.0) % | 19.09 | 17.69 | 7.9 % | |||||||||||||||||||||||||||||
Latin America (2) |
|||||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 7,926 | 8,424 | (5.9) % | 16,934 | 16,077 | 5.3 % | |||||||||||||||||||||||||||||
Available seat miles (millions) | 9,200 | 9,801 | (6.1) % | 19,710 | 20,112 | (2.0) % | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 86.2 | 86.0 | 0.2 pts | 85.9 | 79.9 | 6.0 pts | |||||||||||||||||||||||||||||
Passenger revenue (dollars in millions) | 1,640 | 1,534 | 6.9 % | 3,555 | 2,761 | 28.8 % | |||||||||||||||||||||||||||||
Yield (cents) | 20.69 | 18.21 | 13.6 % | 20.99 | 17.17 | 22.2 % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 17.82 | 15.65 | 13.9 % | 18.04 | 13.73 | 31.4 % | |||||||||||||||||||||||||||||
Atlantic | |||||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 10,689 | 9,045 | 18.2 % | 16,510 | 12,649 | 30.5 % | |||||||||||||||||||||||||||||
Available seat miles (millions) | 12,823 | 11,630 | 10.3 % | 21,065 | 18,010 | 17.0 % | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 83.4 | 77.8 | 5.6 pts | 78.4 | 70.2 | 8.2 pts | |||||||||||||||||||||||||||||
Passenger revenue (dollars in millions) | 1,888 | 1,481 | 27.5 % | 2,819 | 1,947 | 44.8 % | |||||||||||||||||||||||||||||
Yield (cents) | 17.66 | 16.37 | 7.9 % | 17.07 | 15.39 | 10.9 % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 14.72 | 12.73 | 15.6 % | 13.38 | 10.81 | 23.8 % | |||||||||||||||||||||||||||||
Pacific | |||||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 1,647 | 559 | nm | 3,081 | 960 | nm | |||||||||||||||||||||||||||||
Available seat miles (millions) | 1,935 | 784 | nm | 3,635 | 1,754 | nm | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 85.1 | 71.2 | 13.9 pts | 84.8 | 54.7 | 30.1 pts | |||||||||||||||||||||||||||||
Passenger revenue (dollars in millions) | 255 | 88 | nm | 475 | 153 | nm | |||||||||||||||||||||||||||||
Yield (cents) | 15.50 | 15.81 | (2.0) % | 15.40 | 15.94 | (3.4) % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 13.19 | 11.26 | 17.1 % | 13.06 | 8.72 | 49.7 % | |||||||||||||||||||||||||||||
Total International | |||||||||||||||||||||||||||||||||||
Revenue passenger miles (millions) | 20,262 | 18,028 | 12.4 % | 36,525 | 29,686 | 23.0 % | |||||||||||||||||||||||||||||
Available seat miles (millions) | 23,958 | 22,215 | 7.8 % | 44,410 | 39,876 | 11.4 % | |||||||||||||||||||||||||||||
Passenger load factor (percent) | 84.6 | 81.2 | 3.4 pts | 82.2 | 74.4 | 7.8 pts | |||||||||||||||||||||||||||||
Passenger revenue (dollars in millions) | 3,783 | 3,103 | 21.9 % | 6,849 | 4,861 | 40.9 % | |||||||||||||||||||||||||||||
Yield (cents) | 18.67 | 17.21 | 8.5 % | 18.75 | 16.38 | 14.5 % | |||||||||||||||||||||||||||||
Passenger revenue per ASM (cents) | 15.79 | 13.97 | 13.0 % | 15.42 | 12.19 | 26.5 % |
Reconciliation of Operating Income (Loss) Excluding Net Special Items | 3 Months Ended June 30, |
Percent Increase (Decrease) |
6 Months Ended June 30, |
Percent Increase (Decrease) |
||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 2,163 | $ | 1,017 | $ | 2,600 | $ | (706) | ||||||||||||||||||||||||||||||
Operating net special items: | ||||||||||||||||||||||||||||||||||||||
Mainline operating special items, net (1) |
— | (5) | 13 | 152 | ||||||||||||||||||||||||||||||||||
Regional operating special items, net | 6 | — | 6 | — | ||||||||||||||||||||||||||||||||||
Operating income (loss) excluding net special items | $ | 2,169 | $ | 1,012 | nm | $ | 2,619 | $ | (554) | nm | ||||||||||||||||||||||||||||
Calculation of Operating Margin | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) as reported | $ | 2,163 | $ | 1,017 | $ | 2,600 | $ | (706) | ||||||||||||||||||||||||||||||
Total operating revenues as reported | $ | 14,055 | $ | 13,422 | $ | 26,244 | $ | 22,321 | ||||||||||||||||||||||||||||||
Operating margin | 15.4 | % | 7.6 | % | 9.9 | % | (3.2 | %) | ||||||||||||||||||||||||||||||
Calculation of Operating Margin Excluding Net Special Items | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) excluding net special items | $ | 2,169 | $ | 1,012 | $ | 2,619 | $ | (554) | ||||||||||||||||||||||||||||||
Total operating revenues as reported | $ | 14,055 | $ | 13,422 | $ | 26,244 | $ | 22,321 | ||||||||||||||||||||||||||||||
Operating margin excluding net special items | 15.4 | % | 7.5 | % | 10.0 | % | (2.5 | %) | ||||||||||||||||||||||||||||||
Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items | ||||||||||||||||||||||||||||||||||||||
Pre-tax income (loss) as reported | $ | 1,763 | $ | 603 | $ | 1,779 | $ | (1,483) | ||||||||||||||||||||||||||||||
Pre-tax net special items: | ||||||||||||||||||||||||||||||||||||||
Mainline operating special items, net (1) |
— | (5) | 13 | 152 | ||||||||||||||||||||||||||||||||||
Regional operating special items, net | 6 | — | 6 | — | ||||||||||||||||||||||||||||||||||
Nonoperating special items, net (2) |
28 | 89 | 45 | 92 | ||||||||||||||||||||||||||||||||||
Total pre-tax net special items | 34 | 84 | 64 | 244 | ||||||||||||||||||||||||||||||||||
Pre-tax income (loss) excluding net special items | $ | 1,797 | $ | 687 | nm | $ | 1,843 | $ | (1,239) | nm | ||||||||||||||||||||||||||||
Calculation of Pre-Tax Margin | ||||||||||||||||||||||||||||||||||||||
Pre-tax income (loss) as reported | $ | 1,763 | $ | 603 | $ | 1,779 | $ | (1,483) | ||||||||||||||||||||||||||||||
Total operating revenues as reported | $ | 14,055 | $ | 13,422 | $ | 26,244 | $ | 22,321 | ||||||||||||||||||||||||||||||
Pre-tax margin | 12.5 | % | 4.5 | % | 6.8 | % | (6.6 | %) | ||||||||||||||||||||||||||||||
Calculation of Pre-Tax Margin Excluding Net Special Items | ||||||||||||||||||||||||||||||||||||||
Pre-tax income (loss) excluding net special items | $ | 1,797 | $ | 687 | $ | 1,843 | $ | (1,239) | ||||||||||||||||||||||||||||||
Total operating revenues as reported | $ | 14,055 | $ | 13,422 | $ | 26,244 | $ | 22,321 | ||||||||||||||||||||||||||||||
Pre-tax margin excluding net special items | 12.8 | % | 5.1 | % | 7.0 | % | (5.6 | %) |
Reconciliation of Net Income (Loss) Excluding Net Special Items | 3 Months Ended June 30, |
Percent Increase (Decrease) |
6 Months Ended June 30, |
Percent Increase (Decrease) |
||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
(in millions, except share and per share amounts) | (in millions, except share and per share amounts) | |||||||||||||||||||||||||||||||||||||
Net income (loss) as reported | $ | 1,338 | $ | 476 | $ | 1,348 | $ | (1,159) | ||||||||||||||||||||||||||||||
Net special items: | ||||||||||||||||||||||||||||||||||||||
Total pre-tax net special items (1), (2) |
34 | 84 | 64 | 244 | ||||||||||||||||||||||||||||||||||
Income tax special items, net | — | (9) | — | (9) | ||||||||||||||||||||||||||||||||||
Net tax effect of net special items | (1) | (18) | (8) | (53) | ||||||||||||||||||||||||||||||||||
Net income (loss) excluding net special items | $ | 1,371 | $ | 533 | nm | $ | 1,404 | $ | (977) | nm | ||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items | ||||||||||||||||||||||||||||||||||||||
Net income (loss) excluding net special items | $ | 1,371 | $ | 533 | $ | 1,404 | $ | (977) | ||||||||||||||||||||||||||||||
Shares used for computation (in thousands): | ||||||||||||||||||||||||||||||||||||||
Basic | 653,602 | 650,346 | 652,801 | 649,925 | ||||||||||||||||||||||||||||||||||
Diluted | 719,345 | 718,532 | 718,890 | 649,925 | ||||||||||||||||||||||||||||||||||
Earnings (loss) per share excluding net special items: | ||||||||||||||||||||||||||||||||||||||
Basic | $ | 2.10 | $ | 0.82 | $ | 2.15 | $ | (1.50) | ||||||||||||||||||||||||||||||
Diluted | $ | 1.92 | $ | 0.76 | $ | 1.98 | $ | (1.50) | ||||||||||||||||||||||||||||||
Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel | ||||||||||||||||||||||||||||||||||||||
Total operating expenses as reported | $ | 11,892 | $ | 12,405 | $ | 23,644 | $ | 23,027 | ||||||||||||||||||||||||||||||
Operating net special items: | ||||||||||||||||||||||||||||||||||||||
Mainline operating special items, net (1) |
— | 5 | (13) | (152) | ||||||||||||||||||||||||||||||||||
Regional operating special items, net | (6) | — | (6) | — | ||||||||||||||||||||||||||||||||||
Total operating expenses excluding net special items | 11,886 | 12,410 | 23,625 | 22,875 | ||||||||||||||||||||||||||||||||||
Aircraft fuel and related taxes | (2,723) | (4,020) | (5,890) | (6,522) | ||||||||||||||||||||||||||||||||||
Total operating expenses excluding net special items and fuel | $ | 9,163 | $ | 8,390 | $ | 17,735 | $ | 16,353 | ||||||||||||||||||||||||||||||
(in cents) | (in cents) | |||||||||||||||||||||||||||||||||||||
Total operating expenses per ASM as reported | 17.07 | 18.75 | 17.56 | 18.32 | ||||||||||||||||||||||||||||||||||
Operating net special items per ASM: | ||||||||||||||||||||||||||||||||||||||
Mainline operating special items, net (1) |
— | 0.01 | (0.01) | (0.12) | ||||||||||||||||||||||||||||||||||
Regional operating special items, net | (0.01) | — | — | — | ||||||||||||||||||||||||||||||||||
Total operating expenses per ASM excluding net special items | 17.06 | 18.76 | 17.54 | 18.20 | ||||||||||||||||||||||||||||||||||
Aircraft fuel and related taxes per ASM | (3.91) | (6.08) | (4.37) | (5.19) | ||||||||||||||||||||||||||||||||||
Total operating expenses per ASM excluding net special items and fuel | 13.16 | 12.68 | 13.17 | 13.01 |
6 Months Ended June 30, |
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2023 | 2022 | ||||||||||
Net cash provided by operating activities | $ | 5,096 | $ | 2,924 | |||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures, net of aircraft purchase deposit returns | (1,244) | (1,405) | |||||||||
Proceeds from sale-leaseback transactions | 111 | — | |||||||||
Proceeds from sale of property and equipment | 72 | 19 | |||||||||
Purchases of short-term investments | (7,587) | (10,083) | |||||||||
Sales of short-term investments | 4,656 | 10,135 | |||||||||
Decrease (increase) in restricted short-term investments | 33 | (10) | |||||||||
Purchase of equity investment | — | (200) | |||||||||
Other investing activities | 214 | (156) | |||||||||
Net cash used in investing activities | (3,745) | (1,700) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments on long-term debt and finance leases | (3,246) | (1,659) | |||||||||
Proceeds from issuance of long-term debt | 2,143 | 574 | |||||||||
Other financing activities | (55) | (10) | |||||||||
Net cash used in financing activities | (1,158) | (1,095) | |||||||||
Net increase in cash and restricted cash | 193 | 129 | |||||||||
Cash and restricted cash at beginning of period | 586 | 408 | |||||||||
Cash and restricted cash at end of period (1) |
$ | 779 | $ | 537 |
Cash | $ | 614 | $ | 401 | |||||||
Restricted cash included in restricted cash and short-term investments | 165 | 136 | |||||||||
Total cash and restricted cash | $ | 779 | $ | 537 |
6 Months Ended June 30, 2023 |
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(in millions) | |||||
Net cash provided by operating activities | $ | 5,096 | |||
Adjusted net cash used in investing activities (1) |
(833) | ||||
Free cash flow | $ | 4,263 |
Net cash used in investing activities | $ | (3,745) | |||
Adjustments: | |||||
Net purchases of short-term investments | 2,931 | ||||
Increase in restricted cash | (19) | ||||
Adjusted net cash used in investing activities | $ | (833) |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | $ | 614 | $ | 440 | |||||||
Short-term investments | 11,447 | 8,525 | |||||||||
Restricted cash and short-term investments | 984 | 995 | |||||||||
Accounts receivable, net | 2,073 | 2,138 | |||||||||
Aircraft fuel, spare parts and supplies, net | 2,280 | 2,279 | |||||||||
Prepaid expenses and other | 822 | 892 | |||||||||
Total current assets | 18,220 | 15,269 | |||||||||
Operating property and equipment | |||||||||||
Flight equipment | 40,570 | 39,703 | |||||||||
Ground property and equipment | 9,996 | 9,913 | |||||||||
Equipment purchase deposits | 767 | 613 | |||||||||
Total property and equipment, at cost | 51,333 | 50,229 | |||||||||
Less accumulated depreciation and amortization | (21,062) | (20,029) | |||||||||
Total property and equipment, net | 30,271 | 30,200 | |||||||||
Operating lease right-of-use assets | 8,076 | 8,094 | |||||||||
Other assets | |||||||||||
Goodwill | 4,091 | 4,091 | |||||||||
Intangibles, net | 2,055 | 2,059 | |||||||||
Deferred tax asset | 2,660 | 3,099 | |||||||||
Other assets | 1,887 | 1,904 | |||||||||
Total other assets | 10,693 | 11,153 | |||||||||
Total assets | $ | 67,260 | $ | 64,716 | |||||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||
Current liabilities | |||||||||||
Current maturities of long-term debt and finance leases | $ | 3,874 | $ | 3,274 | |||||||
Accounts payable | 2,406 | 2,149 | |||||||||
Accrued salaries and wages | 1,723 | 1,713 | |||||||||
Air traffic liability | 8,530 | 6,745 | |||||||||
Loyalty program liability | 3,492 | 3,169 | |||||||||
Operating lease liabilities | 1,431 | 1,465 | |||||||||
Other accrued liabilities | 2,860 | 2,981 | |||||||||
Total current liabilities | 24,316 | 21,496 | |||||||||
Noncurrent liabilities | |||||||||||
Long-term debt and finance leases, net of current maturities | 30,772 | 32,389 | |||||||||
Pension and postretirement benefits | 2,694 | 2,837 | |||||||||
Loyalty program liability | 5,884 | 5,976 | |||||||||
Operating lease liabilities | 6,506 | 6,559 | |||||||||
Other liabilities | 1,473 | 1,258 | |||||||||
Total noncurrent liabilities | 47,329 | 49,019 | |||||||||
Stockholders' equity (deficit) | |||||||||||
Common stock, 653,286,761 shares outstanding at June 30, 2023 |
7 | 6 | |||||||||
Additional paid-in capital | 7,321 | 7,291 | |||||||||
Accumulated other comprehensive loss | (4,550) | (4,585) | |||||||||
Retained deficit | (7,163) | (8,511) | |||||||||
Total stockholders' deficit | (4,385) | (5,799) | |||||||||
Total liabilities and stockholders’ equity (deficit) | $ | 67,260 | $ | 64,716 |
● | Capacity - The Company expects its third-quarter capacity to be up approximately 5% to 7% versus the third quarter of 2022. The Company continues to expect its full-year capacity to be up approximately 5% to 8% year over year. |
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● | TRASM - The Company expects its third-quarter total revenue per available seat mile (TRASM) to be down approximately 4.5% to 6.5% versus the third quarter of 2022. The Company continues to expect its full-year TRASM to be up low single digits year over year. |
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● | CASM-ex1 - The Company expects both its third-quarter and full-year CASM-ex to be up approximately 2% to 4% versus 2022. The Company’s forecast is inclusive of the impact of all anticipated labor agreements. |
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● | Fuel - Based on the July 14, 2023, forward fuel curve, the Company expects to pay an average of between $2.55 and $2.65 per gallon of jet fuel (including taxes) in the third quarter and an average of between $2.70 and $2.80 per gallon for the full year. Based on its current plans, the Company expects to consume approximately 1,090 million gallons of jet fuel in the third quarter and 4,135 million gallons of jet fuel for the full year. |
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● | Adjusted operating margin1 - The Company expects an adjusted operating margin of approximately 8% to 10% for the third quarter. The Company now expects a full-year adjusted operating margin of 8% to 10%, an increase versus the Company's prior guidance of 7% to 9%. |
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● | Adjusted nonoperating expense1 - The Company expects its total adjusted nonoperating expense to be approximately $380 million in the third quarter and $1,575 million for the full year. |
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● | Taxes - The Company expects a provision for income taxes at an effective rate of approximately 24% in the third quarter and for the full year, which is expected to be substantially non-cash. |
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● | Adjusted EPS1 - Based on the assumptions outlined above, the Company expects its third-quarter adjusted earnings per diluted share to be between approximately $0.85 and $0.95. Based on current assumptions, the Company now expects its full-year adjusted earnings per diluted share to be between $3.00 and $3.75, higher than the Company's prior guidance of $2.50 to $3.50. |
1. | CASM-ex is cost per available seat mile (CASM) excluding fuel and net special items and is a non-GAAP measure. All adjusted operating margin, adjusted nonoperating expense and adjusted earnings per diluted share guidance excludes the impact of net special items and are non-GAAP measures. The Company is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of net special items cannot be determined at this time. Please see GAAP to non-GAAP reconciliation at the end of this document. |
3Q 20231 |
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Available seat miles (ASMs) | ~ + 5% to + 7% (vs. 3Q 22) | |||||||||||||||||||
TRASM | ~ - 4.5% to - 6.5% (vs. 3Q 22) | |||||||||||||||||||
CASM excluding fuel and net special items | ~ + 2% to + 4% (vs. 3Q 22) | |||||||||||||||||||
Average fuel price (incl. taxes) ($/gal) | ~ $2.55 to $2.65 | |||||||||||||||||||
Fuel gallons consumed (mil) | ~ 1,090 | |||||||||||||||||||
Adjusted operating margin |
~ 8% to 10% | |||||||||||||||||||
Adjusted nonoperating expense ($ mil) | ~ $380 | |||||||||||||||||||
Adjusted earnings per diluted share ($/share) | ~ $0.85 to $0.95 | |||||||||||||||||||
3Q 2023 Shares Forecast | ||||||||||||||||||||
Shares (mil)2 |
||||||||||||||||||||
Earnings Level ($ mil) | Basic | Diluted | Addback ($ mil)3 |
|||||||||||||||||
Earnings above $128 | 654.2 | 726.1 | $12 | |||||||||||||||||
Earnings up to $128 | 654.2 | 664.4 | — | |||||||||||||||||
Net loss | 654.2 | 654.2 | — |
FY 20231 |
||||||||||||||||||||
Available seat miles (ASMs) | ~ + 5% to + 8% (vs. 2022) | |||||||||||||||||||
TRASM | Up low single digits (vs. 2022) | |||||||||||||||||||
CASM excluding fuel and net special items | ~ + 2% to + 4% (vs. 2022) | |||||||||||||||||||
Average fuel price (incl. taxes) ($/gal) | ~ $2.70 to $2.80 | |||||||||||||||||||
Fuel gallons consumed (mil) | ~ 4,135 | |||||||||||||||||||
Adjusted operating margin |
~ 8% to 10% | |||||||||||||||||||
Adjusted nonoperating expense ($ mil) | ~ $1,575 | |||||||||||||||||||
Adjusted earnings per diluted share ($/share) | ~ $3.00 to $3.75 | |||||||||||||||||||
FY 2023 Shares Forecast | ||||||||||||||||||||
Shares (mil)2 |
||||||||||||||||||||
Earnings Level ($ mil) | Basic | Diluted | Addback ($ mil)3 |
|||||||||||||||||
Earnings above $501 | 653.6 | 723.0 | $47 | |||||||||||||||||
Earnings up to $501 | 653.6 | 661.2 | — | |||||||||||||||||
Net loss | 653.6 | 653.6 | — |
1. | Includes guidance on certain non-GAAP measures, which exclude, among other things, net special items. The Company is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of net special items cannot be determined at this time. Please see the GAAP to non-GAAP reconciliation at the end of this document. Numbers may not recalculate due to rounding. |
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2. | Shares outstanding are based upon several estimates and assumptions, including average per share stock price and stock award activity. The number of shares in actual calculations of earnings per share will likely be different from those set forth above. | ||||
3. | Interest addback for earnings per diluted share calculation for 6.5% convertible notes, net of estimated profit sharing, short-term incentive, and tax effects. |
GAAP to Non-GAAP Reconciliation of Total Operating Costs and CASM ($ mil, except ASM and CASM data) | |||||||||||||||||||||||
3Q 2023 Range | FY 2023 Range | ||||||||||||||||||||||
Low | High | Low | High | ||||||||||||||||||||
Total operating expenses | $ | 12,040 | $ | 12,510 | $ | 46,922 | $ | 49,078 | |||||||||||||||
Less fuel expense | 2,780 | 2,889 | 11,165 | 11,578 | |||||||||||||||||||
Less operating net special items | — | — | — | — | |||||||||||||||||||
Total operating expense excluding fuel and net special items (non-GAAP) | $ | 9,260 | $ | 9,622 | $ | 35,757 | $ | 37,500 | |||||||||||||||
Total CASM (cts) | 16.72 | 17.05 | 17.17 | 17.46 | |||||||||||||||||||
Total CASM excluding fuel and net special items (cts) (non-GAAP) | 12.86 | 13.11 | 13.09 | 13.34 | |||||||||||||||||||
Percentage change compared to 3Q 2022 (%) | 2.0% | 4.0% | 2.0% | 4.0% | |||||||||||||||||||
Total ASMs (bil) | 72.0 | 73.4 | 273.2 | 281.0 |
Note: Amounts may not recalculate due to rounding. | |||||