• American Airlines Reports Second-Quarter 2023 Financial Results

    Источник: Nasdaq GlobeNewswire / 20 июл 2023 07:00:01   America/New_York

    FORT WORTH, Texas, July 20, 2023 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) today reported its second-quarter 2023 financial results, including:

    • Record quarterly revenue of $14.1 billion, a 4.7% increase year over year.
    • Second-quarter net income of $1.3 billion, or $1.88 per diluted share. Excluding net special items1, second-quarter net income of $1.4 billion, or $1.92 per diluted share.
    • Generated operating cash flow of $1.8 billion and free cash flow of $1.2 billion in the second quarter.
    • Ended the quarter with $14.9 billion of total available liquidity.
    • Raising full-year adjusted EPS2 guidance to between $3.00 and $3.75 per diluted share.
    • Credit rating upgraded two notches to B+ by Fitch.

    “It was another fantastic quarter for American, driven by the hard work of our team to deliver a reliable operation for our customers and the continued strong demand for our product,” said American’s CEO Robert Isom. “Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter. We will build on this momentum the rest of the year and continue to prioritize reliability, profitability, accountability and strengthening our balance sheet.”

    Running a reliable operation
    The American Airlines team delivered a strong operational performance during the quarter, achieving its best-ever second-quarter completion factor and controllable completion factor3. American and its regional partners operated nearly 500,000 flights in the second quarter, with an average load factor of approximately 86%.

    American delivered a record Memorial Day weekend mainline completion factor and controllable completion factor, while operating its largest-ever mainline Memorial Day weekend schedule. The momentum continued into June, with the American team delivering a record June completion factor and controllable completion factor, despite weather and air traffic control challenges. In the second quarter, American achieved its best-ever April, May and June controllable completion factors3 and delivered 11 more combined zero-cancellation days versus the same period last year.

    Returning to profitability
    American produced record quarterly revenues of $14.1 billion in the second quarter. The strong revenue performance was driven by continued broad-based demand strength and American’s completion factor performance in the quarter. Demand was particularly strong in the month of June driven by an increase in close-in bookings. Domestic and short-haul international revenue continue to perform well, and the airline has seen noticeable strength in long-haul international demand and yield performance.

    In the second quarter, the company produced an operating margin of 15.4% and net income of $1.3 billion on a GAAP basis. Excluding net special items1, American produced net income of $1.4 billion in the second quarter.

    Liquidity and balance sheet
    American generated operating cash flow and free cash flow of nearly $1.8 billion and $1.2 billion, respectively, in the second quarter. The company reduced total debt4 by $387 million in the quarter. Strengthening the balance sheet continues to be a top priority, and American is nearly two-thirds of the way to its goal of reducing total debt by $15 billion by the end of 2025. As of June 30, 2023, American had reduced its total debt by approximately $9.4 billion from peak levels in mid-2021. The company’s commitment to strengthening its balance sheet is being recognized, as evidenced by Fitch upgrading the company’s rating two notches, to B+. The company ended the quarter with approximately $14.9 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving and other short-term credit facilities.

    Guidance and investor update
    Based on demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its third-quarter 2023 adjusted earnings per diluted share2 to be between $0.85 and $0.95. American now expects its full-year 2023 adjusted earnings per diluted share2 to be between $3.00 and $3.75. The company’s forecasts include the estimated impact of anticipated new labor agreements.

    For additional financial forecasting detail, please refer to the company’s investor update, furnished with this press release with the SEC on Form 8-K. This filing will also be available at aa.com/investorrelations.

    Conference call and webcast details
    The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CT today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available on the website through Aug. 20.

    Notes
    See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information, including the calculation of free cash flow.

    1. The company recognized $33 million of net special items after the effect of taxes in the second quarter, which principally included charges associated with debt extinguishments and mark-to-market adjustments on equity investments.
    2. Adjusted earnings per diluted share guidance excludes the impact of 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.
    3. Excludes second-quarter 2020 and second-quarter 2021, which were impacted by significantly reduced capacity due to COVID-19.
    4. All references to total debt include debt, finance leases, operating lease liabilities and pension obligations.

    About American Airlines Group
    To Care for People on Life’s Journey®. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.

    Cautionary statement regarding forward-looking statements and information
    Certain of the statements contained in this report 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 statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about the company’s plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on the company’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth herein as well as in the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (especially in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors), and other risks and uncertainties listed from time to time in the company’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which the company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement.

    Corporate Communications
    mediarelations@aa.com

    Investor Relations
    investor.relations@aa.com


    American Airlines Group Inc.
    Condensed Consolidated Statements of Operations
    (In millions, except share and per share amounts)
    (Unaudited)
                  
      3 Months Ended
    June 30,    		 Percent
    Increase    		 6 Months Ended
    June 30,    		 Percent
    Increase    		 
       2023   2022  (Decrease)  2023   2022  (Decrease) 
                  
    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    
                  
                  
                  
    Note: Percent change may not recalculate due to rounding.           
                  
    (1)Not meaningful or greater than 100% change.             
                  



    American Airlines Group Inc.
    Consolidated Operating Statistics(1)
    (Unaudited)
                   
      3 Months Ended
    June 30,    		 Increase  6 Months Ended
    June 30,    		 Increase 
      2023 2022 (Decrease)  2023 2022 (Decrease) 
                   
    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%  
                   
                   
    Note: Amounts may not recalculate due to rounding.              
                   
    (1)Unless otherwise noted, operating statistics include mainline and regional operations. Regional includes wholly-owned regional airline subsidiaries and operating results from capacity purchase carriers.
    (2)Excludes three Boeing 737-800 mainline aircraft that were in temporary storage as of June 30, 2023.
    (3)Includes aircraft 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 74 regional aircraft that were in temporary storage as of June 30, 2023 as follows: 53 Embraer 145, 12 Bombardier CRJ 700, six Embraer 170, and three Bombardier CRJ 900.
    (4)Regional full-time equivalent employees only include our wholly-owned regional airline subsidiaries.
                   



    American Airlines Group Inc.
    Consolidated Revenue Statistics by Region
    (Unaudited)
                     
       3 Months Ended
    June 30,    		 Increase  6 Months Ended
    June 30,    		 Increase  
       2023 2022 (Decrease)  2023 2022 (Decrease)  
                     
    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%   
                     
    Note: Amounts may not recalculate due to rounding.             
                     
    (1)Domestic results include Canada, Puerto Rico and U.S. Virgin Islands.         
    (2)Latin America results include the Caribbean.             
                     



    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 with GAAP to understand and evaluate its current operating performance and to allow for period-to-period comparisons. The Company believes these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. The Company is providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.

    The tables below present the reconciliations of the following GAAP measures to their non-GAAP measures:

    - Operating Income (Loss) (GAAP measure) to Operating Income (Loss) Excluding Net Special Items (non-GAAP measure)
    - Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure)
    - Pre-Tax Income (Loss) (GAAP measure) to Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP measure)
    - Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Net Special Items (non-GAAP measure)
    - Net Income (Loss) (GAAP measure) to Net Income (Loss) Excluding Net Special Items (non-GAAP measure)
    - Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items (non-GAAP measure)

    Management uses these non-GAAP financial measures to evaluate the Company's current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items allows management an additional tool to understand the Company’s core operating performance.

    Additionally, the tables below present the reconciliations of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and total operating costs per ASM (CASM) to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net special items and fuel to evaluate the Company's current operating performance and for period-to-period comparisons. The price of fuel, over which the Company has no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude fuel and net special items allows management an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance.    		 
                   
     Reconciliation of Operating Income (Loss) Excluding Net Special Items 3 Months Ended
    June 30,    		 Percent Increase 6 Months Ended
    June 30,    		Percent Increase 
       2023   2022  (Decrease)  2023   2022  (Decrease) 
       (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%)   
                   
                   
       3 Months Ended
    June 30,    		 Percent Increase 6 Months Ended
    June 30,    		Percent Increase 
     Reconciliation of Net Income (Loss) Excluding Net Special Items  2023   2022  (Decrease)  2023   2022  (Decrease) 
       (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    
                   
     Note: Amounts may not recalculate due to rounding.             
                   
     FOOTNOTES:             
                   
    (1)The 2022 six month period mainline operating special items, net principally included a non-cash impairment charge to write down the carrying value of the Company's retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. The Company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic. 
                   
    (2)Principally included charges associated with debt refinancings and extinguishments as well as mark-to-market net unrealized gains and losses associated with certain equity investments. 
                   



    American Airlines Group Inc.
    Condensed Consolidated Statements of Cash Flows
    (In millions)(Unaudited)
           
        6 Months Ended
    June 30,
         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 
    (1)Cash and restricted cash at end of period$779  $537 
           
           
           
    (1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:
           
     Cash $614  $401 
     Restricted cash included in restricted cash and short-term investments 165   136 
     Total cash and restricted cash$779  $537 
           



    Free Cash Flow 
           
    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 available for use to reinvest in the business or to reduce debt. The Company defines free cash flows as net cash provided by operating activities less net cash used in investing activities, adjusted for (1) net purchases of short-term investments and (2) change in restricted cash. We believe that calculating free cash flow as adjusted for these items is more useful for investors because short-term investment activity and restricted cash are not representative of activity core to our operations.

    This non-GAAP measure may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. Our calculation of free cash flow is not intended, and should not be used, to measure the residual cash flow available for discretionary expenditures because, among other things, it excludes mandatory debt service requirements and certain other non-discretionary expenditures.    		  
           
        6 Months Ended
    June 30, 2023    		  
          
        (in millions)  
           
     Net cash provided by operating activities$5,096   
     Adjusted net cash used in investing activities(1) (833)  
     Free cash flow$4,263   
           
           
           
    (1)The following table provides a reconciliation of adjusted net cash used in investing activities for the six months ended June 30, 2023 (in millions):  
           
     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)  
           



        
    American Airlines Group Inc.
    Condensed Consolidated Balance Sheets
    (In millions, except shares)
     
        
     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 
        

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