Newsroom – American Airlines Releases Second Quarter 2022 Financial Results

FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL ) today reported its second quarter 2022 financial results, which included: Second quarter net income of $476 million, or $0.68 per diluted share. Excluding net special items1, second quarter net income of $533 million, or $0.76 per diluted share.

FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL ) today reported its financial results for the second quarter of 2022, which include:

Second quarter net income of $476 million, or $0.68 per diluted share. Excluding net special items1, second quarter net income of $533 million, or $0.76 per diluted share.
Record second-quarter revenue of $13.4 billion, up 12.2% over the same period in 2019, despite flying 8.5% less capacity.
It ended the second quarter with $15.6 billion in total available liquidity.
The company continues to execute on its plan to repay approximately $15 billion of total debt2 by the end of 2025.

“We are very pleased to report a quarterly profit, excluding net special items, for the first time since the start of the pandemic, driven by the strong demand environment and the hard work of our team,” said the CEO of American, Robert Isom. “The American Airlines team has stepped up to meet increased air travel demand while operating reliably in very challenging conditions. We are encouraged by the trends we are seeing across the business and are well positioned to continuous recovery”.

Executing a reliable operation

In the second quarter, American flew more than 25% more scheduled than its nearest competitor, as measured by total departures. American and its regional partners operated more than 500,000 flights during the quarter, up 8% from Q2 2021, with an average load factor of 87%, up 10 points from Q2 2021. All and an operational challenge around June, American’s on-time departure rate, on-time arrival rate and completion factor for the second quarter of 2022 improved compared to the second quarter of 2019.

American is proud to offer customers the youngest fleet among American network airlines and the largest network of any American airline, with a projected average of more than 5,400 daily departures for the remainder of the summer.

Returning to profitability

American produced revenue of $13.4 billion in the second quarter, a 12.2% increase over 2019 and a record for any quarter in the company’s history. These record revenues were achieved while flying 8.5% less capacity than the same period in 2019, and there is still significant revenue potential as business and international travel improves further.

Domestic leisure travel remains very strong and exceeded 2019 levels in the second quarter, and Americans also saw improvements in business and government income during the quarter. Demand for international travel also improved steadily in the second quarter and the company expects this to continue following the lifting of the COVID-19 testing requirement for inbound travel to the US

Liquidity and balance sheet

American ended the second quarter with $15.6 billion of total available cash. Total debt reduction remains a top priority and the company remains on track to reduce overall debt levels by $15 billion by the end of 2025.

In the second quarter, the company made $1 billion in scheduled debt and finance lease payments, including paying the remaining outstanding balance of $433 million on its $750 million senior unsecured notes due in June. So far, American has reduced its overall debt by $5.2 billion from peak levels in the second quarter of 2021.

Orientation and updating of investors

American will continue to match its advanced capability with the resources needed to support its operation. Based on current trends, the company expects its third quarter total revenue to be 10% to 12% higher than the third quarter of 2019 on capacity of 8% to 10% higher come down Based on these demand trends and the current fuel price forecast, the company expects to be profitable in the third quarter.

For more information on the financial forecasts, see the company’s investor update, filed with this press release with the SEC on Form 8-K. This file will also be available at aa.com/investorrelations.

Details of the conference and the webcast

The company will conduct a live audio webcast of its financial results conference call today at 7:30 am CDT. The call will be available to the public for listening only at aa.com/investorrelations. An archive of the webcast will be available on the website until August 21.

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.

1 The Company recognized $84 million of pre-tax net special items in the second quarter of 2022, which primarily included net unrealized mark-to-market losses associated with certain equity investments.

2 Total debt includes debt, finance leases, operating lease liabilities and pension obligations.

Financial results

Click the button below to download the financial results for the second quarter of 2022.

About American Airlines Group
To take care of people on Life’s Journey®. Shares of American Airlines Group Inc. they trade on the Nasdaq under the 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 the Facebook.com/AmericanAirlines.

Cautionary Statement Regarding Forward-Looking Statements and Information
Certain 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. -Look statements can be identified by words such as “may”, “will”, “expect”, “try”, “anticipate”, “believe”, “estimate”, “plan”, “project” , “could” “should”, “should”, “continue”, “seek”, “goal”, “guidance”, “outlook”, “if current trends continue”, “optimistic”, “forecast” and other similar words. These statements include, but are not limited to, statements about the company’s plans, objectives, expectations, intentions, estimates and strategies for the future, the continued availability of borrowings under revolving credit facilities and other statements that are not historical facts. These forward-looking statements are based on the company’s current objectives, beliefs and expectations, and are subject to significant risks and uncertainties that could cause actual results and financial position and the timing of certain events to differ materially from those in the information. prospective 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, 2022 (particularly in Part I, point 2. Management’s discussion and analysis). of the financial situation and results of operations and part II, section 1A. Risk Factors), and other risks and uncertainties listed from time to time in other company filings with the Securities and Exchange Commission. In particular, the consequences of the coronavirus outbreak on economic conditions and the travel industry in general and the Company’s financial condition and operating results in particular have been material, rapidly changing and cannot be predicted. In addition, there may be other factors of which the Company is not currently aware that may affect the matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The Company undertakes no obligation to publicly update or supplement any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements other than as required by law. Any forward-looking statement speaks only as of the date hereof or the dates indicated in the statement.





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