FORT WORTH, Texas, Jan. 27, 2015 /PRNewswire/ -- American
Airlines Group Inc. (NASDAQ: AAL) today reported its fourth quarter
and full year 2014 results.
- Reported record fourth quarter 2014 net profit excluding net
special charges of $1.1 billion, up
153 percent versus the fourth quarter 2013. For the year, the
Company's 2014 net profit excluding net special charges was a
record $4.2 billion, up 115
percent versus 2013
- Completed the Company's previously announced $1 billion share repurchase program more than one
year before its expiration. Announced authorization of an
additional $2 billion share
repurchase program to be completed by the end of 2016
- Declared a dividend of $0.10
per share to be paid on February 23,
2015, to shareholders of record as of February 9, 2015
For the fourth quarter 2014, American Airlines Group reported a
record GAAP net profit of $597 million. This compares to a
GAAP net loss of $2.0 billion in the
fourth quarter 2013, which includes the results for US Airways only
for the period from the completion of the merger on December 9, 2013, through December 31, 2013.
For full year 2014, GAAP net profit was $2.9 billion,
compared to a full year 2013 GAAP net loss of $1.8 billion for
AMR Corporation, which includes the results for US Airways only for
the period from the completion of the merger on December 9, 2013, through December 31, of 2013.
The Company believes it is more meaningful to compare
year-over-year results for American Airlines and US Airways
excluding special charges and on a combined basis, which is a
non-GAAP formulation that combines the results for AMR Corporation
and US Airways Group. On this basis, the Company's fourth quarter
2014 net profit excluding net special charges was a record
$1.1 billion, or $1.52 per diluted share. This represents a
153 percent improvement over the combined non-GAAP net profit of
$436 million excluding net special
charges for the same period in 2013. The Company's fourth quarter
2014 pretax margin excluding net special charges was a record 10.6
percent.
Excluding net special charges, the Company's 2014 net profit was
a record $4.2 billion, or
$5.70 per diluted share. This
represents a 115 percent improvement over the Company's combined
2013 non-GAAP net profit excluding net special charges of
$1.9 billion.
See the accompanying notes in the Financial Tables section of
this press release for further explanation of this presentation,
including a reconciliation of GAAP to non-GAAP financial
information.
"Our record 2014 results close out a fantastic first year for
our merger. These results would not have been possible without the
efforts of our more than 100,000 team members," said Doug Parker, American Airlines Group Chairman
and CEO. "They have done a great job of working together to take
care of our customers and restore American as the greatest airline
in the world.
"We have much to do in the year ahead as we continue to
integrate two large carriers. The results we have achieved thus
far, combined with our economic outlook, give us confidence that
2015 will be another outstanding year for American Airlines."
Revenue and Cost Comparisons
Total revenue in the fourth quarter was a record $10.2 billion, an increase of 2.1 percent versus
the fourth quarter 2013 on a combined basis and excluding special
items, on a 1.7 percent increase in total available seat miles
(ASMs). Consolidated passenger revenue per ASM (PRASM) was
13.50 cents, down 1.0 percent versus
the fourth quarter 2013 on a combined basis. Consolidated passenger
yield was a record 16.84 cents, up
0.9 percent year-over-year.
Strong demand throughout the year led to 2014 total revenue of
$42.7 billion, up 5.6 percent versus
2013 on a combined basis and excluding special items. Full year
consolidated PRASM was 13.97 cents,
up 2.2 percent versus 2013 on a combined basis.
Total operating expenses in the fourth quarter were $9.3
billion, a decrease of 4.1 percent compared to combined fourth
quarter 2013 due primarily to a 17.3 percent decrease in
consolidated fuel expense. Fourth quarter mainline cost per
available seat mile (CASM) was 13.32 cents, down 6.1 percent
on a 1.5 percent increase in mainline ASMs versus combined fourth
quarter 2013. Excluding special charges and fuel, mainline CASM
was 8.67 cents, up 1.1 percent compared to the combined fourth
quarter 2013. Regional CASM excluding special charges and fuel
was 15.87 cents, up 0.9 percent on a 3.8 percent increase in
regional ASMs versus combined fourth quarter 2013.
For the full year 2014, total operating expenses were $38.4
billion, up 1.5 percent versus combined 2013. Excluding special
charges and fuel, mainline CASM increased 2.0 percent to 8.63
cents versus combined 2013. Regional CASM excluding special items
and fuel increased 3.6 percent to 15.94 cents versus combined
2013.
Liquidity
At December 31, 2014, American had approximately $8.1
billion in total cash and short-term investments, of
which $774 million was restricted. The Company also had an
undrawn revolving credit facility of $1.8
billion.
Also in the fourth quarter, the Company returned $959 million to its shareholders through the
payment of $72 million in quarterly
dividends and the repurchase of $887
million of common stock, or 20.5 million shares. When
combined with the $113 million of
shares repurchased in the third quarter 2014, the Company
repurchased a total of 23.4 million shares at an average price of
$42.72 per share in 2014.The
Company's $1 billion share repurchase
program announced in July 2014 is now
complete – more than one year ahead of its scheduled expiration.
The Company also purchased approximately 52,000 shares from its
Disputed Claims Reserve at the prevailing market price to satisfy
certain tax obligations resulting from the November 4, 2014, distribution.
As of December 31, 2014,
approximately $656 million of the
Company's unrestricted cash and short-term investment balance was
held in Venezuelan bolivars. This balance includes approximately
$621 million valued at 6.3 bolivars and approximately $35 million valued at 12.0
bolivars, with the rate depending on the date the Company
submitted its repatriation request to the Venezuelan
government. These rates are materially more favorable than the
exchange rates currently prevailing for other transactions
conducted outside of the Venezuelan government's currency exchange
system. The Company's cash balance held in Venezuelan bolivars
decreased $65 million from the
September 30, 2014 balance of
$721 million. In the fourth quarter
of 2014, the Company incurred an $11
million foreign currency loss related to the receipt of
$23 million at a rate of 6.3 bolivars to the dollar for one of its 2012
repatriation requests originally valued at a rate of 4.3 bolivars to the dollar. Accordingly, the
Company revalued its remaining pending 2012 repatriation requests
from 4.3 to 6.3 bolivars to the
dollar resulting in additional foreign currency losses of
$19 million. In total, the Company
recognized a $30 million special
charge for these foreign currency losses in the fourth quarter of
2014.
The Company has significantly reduced capacity in this
market. The Company is continuing to work with Venezuelan
authorities regarding the timing and exchange rate applicable to
the repatriation of funds held in local currency. The Company
is monitoring this situation closely and continues to evaluate its
holdings of Venezuelan bolivars for additional foreign currency
losses, which could be material.
The Company also announced that its Board of Directors declared
a dividend of $0.10 per share for
shareholders of record as of February 9,
2015. The dividend will be paid on February 23, 2015. In addition, the Company
announced that its Board also authorized an additional $2 billion share repurchase program to be
completed by the end of 2016.
Shares repurchased under the program announced above may be made
through a variety of methods, which may include open market
purchases, privately negotiated transactions, block trades or
accelerated share repurchase transactions. Any such repurchases
will be made from time to time subject to market and economic
conditions, applicable legal requirements and other relevant
factors. The program does not obligate the Company to repurchase
any specific number of shares or continue a dividend for any fixed
period, and may be suspended at any time at management's
discretion.
Notable Accomplishments
Merger Related Accomplishments
- Combined operations at 23 airports during the quarter, bringing
the total to 106
- Announced details of a combined frequent flyer program for
American Airlines AAdvantage® and US Airways Dividend
Miles® members that will combine mileage balances and
align elite levels and qualification criteria
- Integrated the Company's cargo division under a single cargo
air waybill, giving customers worldwide access to seamless cargo
shipping across the merged airline
- Reached a new five-year joint collective bargaining agreement
(JCBA) with the Association of Professional Flight Attendants for
the airline's combined 24,000 flight attendants
- Reached a tentative five-year JCBA with the Allied Pilots
Association representing the carrier's 14,000 pilots; ratification
results will be known later this month
- Reached a new 10-year agreement with the Air Line Pilots
Association representing pilots at the Company's wholly owned
subsidiary Envoy Air that provides significant flow-through
opportunities from the regional unit to the mainline carrier
Marketing, Network and Fleet Accomplishments
- Announced $2 billion in planned
customer improvements, including new seats from nose to tail on
several aircraft types and fully lie-flat seats on the Company's
long-haul international fleet; satellite-based Internet access,
providing connectivity for international flights; a refreshed and
modern design for Admirals Club lounges worldwide; onboard power on
new aircraft; and improved and updated kiosks to expedite airport
check-in
- As part of the Company's fleet renewal program, took delivery
of 20 new mainline aircraft in the fourth quarter, including 11
Airbus A320 family aircraft, seven Boeing 737-800 aircraft and two
Boeing 777-300ER aircraft. On January
23, the Company received its first Boeing 787-8 Dreamliner,
the first of 12 that it expects to receive in 2015
- Celebrated the 25th anniversary of our Miami Hub, the premier
gateway in the United States for
Latin America and the Caribbean
- Began service to Cap Haitien, the Company's second destination
in Haiti and 32nd destination in
the Caribbean, as well as Campinas
(Viracopos), Brazil, the Company's
10th destination in Brazil
- Announced new service from Birmingham, England to New York John F.
Kennedy International Airport, as
well as second daily services to both Los Angeles International and
Philadelphia from London Heathrow
Airport
- Formed a partnership with Cadillac to offer ramp transfers at
Los Angeles International Airport,
Dallas/Fort Worth International
Airport, New York's LaGuardia
Airport and John F. Kennedy
International Airport for the Company's premium customers
- Announced a codeshare relationship with Jetstar that will add
the American Airlines code to several destinations in Japan. Also announced a codeshare agreement
with Mexico City-based airline
Interjet, adding new service to key destinations in Mexico for American's customers
Community Relations Accomplishments
- Recognized as one of the "2014 Best Companies for Diversity" by
Hispanic Business Inc. and honored as the only airline to earn a
perfect score in the Human Rights Campaign's Corporate Equality
Index
- Held the Company's first combined Be Pink month, raising more
than $750,000 from employees, vendors
and customers for Susan G.
Komen®. In addition, nearly 500 employees
participated in Making Strides Against Breast Cancer walks and the
Susan G. Komen Race for the Cure Series
- Hosted Sky Ball, an annual gala
event at one of the Company's hangars at Dallas/Fort Worth International Airport
honoring U.S. military members, veterans, and their families. This
event raised more than $1.9 million
for the Airpower Foundation, and more than 1,000 American Airlines
employees volunteered their time
- Held the Company's annual Snowball Express, with ten American
Airlines charter flights bringing nearly 1,800 children and spouses
of fallen military men and women to the Dallas-Fort Worth area for four days of
activities such as sporting events, dances, and visits to amusement
parks
Special Items
In the fourth quarter, the Company recognized $507 million in net special charges,
including:
- $280 million in merger
integration related expenses
- $116 million in net charges for
bankruptcy related items, principally consisting of fair value
adjustments for bankruptcy settlement obligations
- $70 million in charges related
primarily to certain asset impairments
- $31 million in non-operating
special items primarily relating to a $30
million special charge for foreign currency losses relating
to the Company's cash balance held in Venezuelan bolivars
- $16 million in net regional
operating special items including a $24
million charge relating to a new pilot contract, partially
offset by an $8 million gain on the
sale of certain spare parts
- $6 million in non-cash deferred
income tax benefits relating to certain indefinite lived intangible
assets
Conference Call / Webcast Details
The Company will conduct a live audio webcast of its
earnings call today at 7:30 a.m. CT, which 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 February 27.
Investor Guidance
For financial forecasting detail, please refer to the Company's
investor relations update also filed this morning with the
Securities Exchange Commission on Form 8-K. This filing is
available aa.com/investorrelations.
About American Airlines Group
American Airlines Group (NASDAQ: AAL) is the holding company for
American Airlines and US Airways. Together with wholly owned and
third-party regional carriers operating as American Eagle and US
Airways Express, the airlines operate an average of nearly 6,700
flights per day to 339 destinations in 54 countries from its hubs
in Charlotte, Chicago, Dallas/Fort
Worth, Los Angeles,
Miami, New York, Philadelphia, Phoenix and Washington, D.C. The American Airlines
AAdvantage and US Airways Dividend Miles programs allow members to
earn miles for travel, vacation packages, car rentals, hotel stays
and everyday purchases. Members of both programs can redeem miles
for tickets as well as upgrades to First Class and Business Class.
In addition, AAdvantage members can redeem miles for vacation
packages, car rentals, hotel stays and retail products. American is
a founding member of the oneworld alliance, whose members and
members-elect serve nearly 1,000 destinations with 14,250 daily
flights to 150 countries. Connect with American on Twitter
@AmericanAir and at Facebook.com/AmericanAirlines and follow US
Airways on Twitter @USAirways.
Cautionary Statement Regarding Forward-Looking Statements and
Information
This document includes forward-looking statements within the
meaning of 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
future financial and operating results, our plans, objectives,
estimates, expectations and intentions, and other statements that
are not historical facts. These forward-looking statements are
based on the current objectives, beliefs and expectations of the
Company, 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. The following
factors, among others, could cause actual results and financial
position and timing of certain events to differ materially from
those described in the forward-looking statements: significant
operating losses in the future; downturns in economic conditions
that adversely affect the Company's business; the impact of
continued periods of high volatility in fuel costs, increased fuel
prices and significant disruptions in the supply of aircraft fuel;
competitive practices in the industry, including the impact of low
cost carriers, airline alliances and industry consolidation; the
challenges and costs of integrating operations and realizing
anticipated synergies and other benefits of the merger transaction
with US Airways Group, Inc.; the Company's substantial indebtedness
and other obligations and the effect they could have on the
Company's business and liquidity; an inability to obtain sufficient
financing or other capital to operate successfully and in
accordance with the Company's current business plan; increased
costs of financing, a reduction in the availability of financing
and fluctuations in interest rates; the effect the Company's high
level of fixed obligations may have on its ability to fund general
corporate requirements, obtain additional financing and respond to
competitive developments and adverse economic and industry
conditions; the Company's significant pension and other
post-employment benefit funding obligations; the impact of any
failure to comply with the covenants contained in financing
arrangements; provisions in credit card processing and other
commercial agreements that may materially reduce the Company's
liquidity; the limitations of the Company's historical consolidated
financial information, which is not directly comparable to its
financial information for prior or future periods; the impact of
union disputes, employee strikes and other labor-related
disruptions; any inability to maintain labor costs at competitive
levels; interruptions or disruptions in service at one or more of
the Company's hub airports; any inability to obtain and maintain
adequate facilities, infrastructure and slots to operate the
Company's flight schedule and expand or change its route network;
the Company's reliance on third-party regional operators or
third-party service providers that have the ability to affect the
Company's revenue and the public's perception about its services;
any inability to effectively manage the costs, rights and
functionality of third-party distribution channels on which the
Company relies; extensive government regulation, which may result
in increases in the Company's costs, disruptions to the Company's
operations, limits on the Company's operating flexibility,
reductions in the demand for air travel, and competitive
disadvantages; the impact of the heavy taxation to which the
airline industry is subject; changes to the Company's business
model that may not successfully increase revenues and may cause
operational difficulties or decreased demand; the loss of key
personnel or inability to attract and retain additional qualified
personnel; the impact of conflicts overseas, terrorist attacks and
ongoing security concerns; the global scope of the Company's
business and any associated economic and political instability or
adverse effects of events, circumstances or government actions
beyond its control, including the impact of foreign currency
exchange rate fluctuations and limitations on the repatriation of
cash held in foreign countries; the impact of environmental
regulation; the Company's reliance on technology and automated
systems and the impact of any failure of these technologies or
systems; challenges in integrating the Company's computer,
communications and other technology systems; costs of ongoing data
security compliance requirements and the impact of any significant
data security breach; losses and adverse publicity stemming from
any accident involving any of the Company's aircraft or the
aircraft of its regional or codeshare operators; delays in
scheduled aircraft deliveries, or other loss of anticipated fleet
capacity, and failure of new aircraft to perform as expected; the
Company's dependence on a limited number of suppliers for aircraft,
aircraft engines and parts; the impact of changing economic and
other conditions beyond the Company's control, including global
events that affect travel behavior such as an outbreak of a
contagious disease, and volatility and fluctuations in the
Company's results of operations due to seasonality; the effect of a
higher than normal number of pilot retirements and a potential
shortage of pilots; the impact of possible future increases in
insurance costs or reductions in available insurance coverage; the
effect of several lawsuits that were filed in connection with the
merger transaction with US Airways Group, Inc. and remain pending;
an inability to use NOL carryforwards; any impairment in the amount
of goodwill the Company recorded as a result of the application of
the acquisition method of accounting and an inability to realize
the full value of the Company's and American Airlines' respective
intangible or long-lived assets and any material impairment charges
that would be recorded as a result; price volatility of the
Company's common stock; delay or prevention of stockholders'
ability to change the composition of the Company's board of
directors and the effect this may have on takeover attempts that
some of the Company's stockholders might consider beneficial; the
effect of provisions of the Company's Certificate of Incorporation
and Bylaws that limit ownership and voting of its equity interests,
including its common stock; the effect of limitations in the
Company's Certificate of Incorporation on acquisitions and
dispositions of its common stock designed to protect its NOL
carryforwards and certain other tax attributes, which may limit the
liquidity of its common stock; and other economic, business,
competitive, and/or regulatory factors affecting the Company's
business, including those set forth in the Company's quarterly
report on Form 10-Q for the period ending September 30, 2014 (especially in the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections) and other risks and
uncertainties listed from time to time in our filings with the SEC.
Any forward-looking statements speak only as of the date hereof or
as of the dates indicated in the statements. 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 except as required by law.
American Airlines
Group Inc. (Formerly AMR Corporation)
|
GAAP Results
- Consolidated Statements of Operations
|
Reflects AAG
Standalone Results for Period Prior to Merger Close
|
(In millions,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
Percent
|
|
12 Months Ended
December 31,
|
|
Percent
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
(A)
|
|
|
|
|
|
(A)
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Mainline passenger
|
$
7,238
|
|
$
5,463
|
|
32.5
|
|
$
30,802
|
|
$
20,218
|
|
52.3
|
Regional passenger
|
1,544
|
|
933
|
|
65.4
|
|
6,322
|
|
3,131
|
|
nm
|
Cargo
|
232
|
|
196
|
|
18.6
|
|
875
|
|
685
|
|
27.7
|
Other
|
1,146
|
|
775
|
|
47.7
|
|
4,651
|
|
2,709
|
|
71.7
|
Total operating revenues
|
10,160
|
|
7,367
|
|
37.9
|
|
42,650
|
|
26,743
|
|
59.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes
|
2,222
|
|
2,075
|
|
7.1
|
|
10,592
|
|
7,839
|
|
35.1
|
Salaries, wages and benefits
|
2,089
|
|
1,530
|
|
36.5
|
|
8,508
|
|
5,460
|
|
55.8
|
Regional expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
437
|
|
326
|
|
34.1
|
|
2,009
|
|
1,120
|
|
79.4
|
Other
|
1,161
|
|
667
|
|
74.1
|
|
4,507
|
|
2,206
|
|
nm
|
Maintenance, materials and repairs
|
523
|
|
328
|
|
59.4
|
|
2,051
|
|
1,260
|
|
62.8
|
Other rent and landing fees
|
430
|
|
301
|
|
42.8
|
|
1,727
|
|
1,152
|
|
49.9
|
Aircraft rent
|
312
|
|
230
|
|
36.0
|
|
1,250
|
|
768
|
|
62.8
|
Selling expenses
|
348
|
|
301
|
|
15.6
|
|
1,544
|
|
1,158
|
|
33.4
|
Depreciation and amortization
|
334
|
|
237
|
|
40.9
|
|
1,295
|
|
853
|
|
51.8
|
Special items, net
|
466
|
|
461
|
|
1.0
|
|
800
|
|
559
|
|
43.2
|
Other
|
978
|
|
796
|
|
22.7
|
|
4,118
|
|
2,969
|
|
38.7
|
Total operating expenses
|
9,300
|
|
7,252
|
|
28.2
|
|
38,401
|
|
25,344
|
|
51.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
860
|
|
115
|
|
nm
|
|
4,249
|
|
1,399
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
9
|
|
6
|
|
49.1
|
|
31
|
|
20
|
|
54.5
|
Interest expense, net
|
(220)
|
|
(214)
|
|
3.2
|
|
(887)
|
|
(856)
|
|
3.7
|
Other, net
|
(82)
|
|
(11)
|
|
nm
|
|
(181)
|
|
(88)
|
|
nm
|
Total nonoperating expense, net
|
(293)
|
|
(219)
|
|
34.0
|
|
(1,037)
|
|
(924)
|
|
12.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
reorganization items, net
|
567
|
|
(104)
|
|
nm
|
|
3,212
|
|
475
|
|
nm
|
Reorganization items,
net
|
-
|
|
(2,220)
|
|
(100.0)
|
|
-
|
|
(2,655)
|
|
(100.0)
|
Income (loss) before
income taxes
|
567
|
|
(2,324)
|
|
nm
|
|
3,212
|
|
(2,180)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
(30)
|
|
(324)
|
|
(90.7)
|
|
330
|
|
(346)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
597
|
|
$
(2,000)
|
|
nm
|
|
$
2,882
|
|
$
(1,834)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share (B):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.84
|
|
$
(5.38)
|
|
|
|
$
4.02
|
|
$
(6.54)
|
|
|
Diluted
|
$
0.82
|
|
$
(5.38)
|
|
|
|
$
3.93
|
|
$
(6.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands) (B):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
706,185
|
|
372,055
|
|
|
|
717,456
|
|
280,213
|
|
|
Diluted
|
724,767
|
|
372,055
|
|
|
|
734,016
|
|
280,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent
change may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) American
Airlines Group Inc. (formerly AMR Corporation) is a holding company
and its principal, wholly owned subsidiaries are American Airlines,
Inc. ("American") and, effective December 9, 2013 (the "effective
date"), US Airways Group, Inc. ("US Airways Group"). US Airways
Group became a subsidiary of AMR Corporation ("AMR") as a result of
a merger transaction. Also in connection with the merger, AMR
changed its name to American Airlines Group Inc. ("AAG" or the
"Company"). Therefore, the results for the three and twelve months
ended December 31, 2013 include the results for US Airways Group
only for the period from December 9, 2013 to December 31, 2013.
This impacts the comparability of AAG's financial statements under
GAAP to the 2014 period. Refer to the AAG combined financial
statements for an alternative, non-GAAP presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) Pursuant
to the Company's Fourth Amended Joint Chapter 11 Plan of
Reorganization (the "Plan"), holders of AMR common stock formerly
traded under the symbol "AAMRQ" received shares of AAG common stock
principally over a 120-day distribution period following the
effective date. The Company's weighted average diluted shares
outstanding for the three and twelve months ended December 31, 2013
includes the weighted effect of shares outstanding for both the pre
and post-merger periods. The shares outstanding for the pre-merger
period consist only of the AAMRQ shares. In accordance with GAAP,
the 2013 three and twelve month periods weighted average shares and
earnings per share calculation have been adjusted to
retrospectively reflect these distributions, which were made at the
rate of approximately 0.7441 shares of AAG common stock per share
of AAMRQ. The shares outstanding for the 23 day post-merger period
(December 9, 2013 through December 31, 2013) include the full
amount of shares issued pursuant to the Plan adjusted for
approximately 13 million shares withheld by the Company in
satisfaction of employee tax obligations. Former holders of AAMRQ
shares as of the effective date may in the future receive
additional distributions of AAG common stock dependent upon the
ultimate distribution of shares of AAG common stock to holders of
disputed claims. Thus, the shares and related earnings per share
calculation prior to the effective date may change in the future to
reflect additional retrospective adjustments for future AAG common
stock distributions to former holders of AAMRQ
shares.
|
American Airlines
Group Inc. (Formerly AMR Corporation)
|
Non-GAAP
Combined Consolidated Statements of Operations
|
Reflects
Combined Consolidated Results for AAG and US Airways Group,
Inc.
|
(In millions,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31, 2013
|
|
|
|
|
3 Months Ended
December 31, 2014
|
|
American Airlines
Group
|
|
US Airways
Group
|
|
Combined
|
|
Percent
Change
|
|
|
(A)
|
|
|
|
(B)
|
|
(C)
|
|
(D)
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Mainline passenger
|
|
$
7,238
|
|
$
4,838
|
|
$
2,322
|
|
$
7,160
|
|
1.1
|
Regional passenger
|
|
1,544
|
|
730
|
|
832
|
|
1,562
|
|
(1.2)
|
Cargo
|
|
232
|
|
186
|
|
41
|
|
227
|
|
2.0
|
Other
|
|
1,146
|
|
682
|
|
352
|
|
1,034
|
(E)
|
10.9
|
Total operating revenues
|
|
10,160
|
|
6,436
|
|
3,547
|
|
9,983
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes
|
|
2,222
|
|
1,864
|
|
833
|
|
2,697
|
|
(17.6)
|
Salaries, wages and benefits
|
|
2,089
|
|
1,345
|
|
659
|
|
2,004
|
|
4.2
|
Regional expenses:
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
437
|
|
261
|
|
256
|
|
517
|
|
(15.5)
|
Other
|
|
1,161
|
|
516
|
|
582
|
|
1,098
|
|
5.7
|
Maintenance, materials and repairs
|
|
523
|
|
290
|
|
161
|
|
451
|
|
15.8
|
Other rent and landing fees
|
|
430
|
|
266
|
|
143
|
|
409
|
|
4.9
|
Aircraft rent
|
|
312
|
|
205
|
|
136
|
|
341
|
|
(8.2)
|
Selling expenses
|
|
348
|
|
271
|
|
116
|
|
387
|
|
(10.0)
|
Depreciation and amortization
|
|
334
|
|
215
|
|
81
|
|
296
|
|
12.8
|
Special items, net
|
|
466
|
|
184
|
|
313
|
|
497
|
|
(6.2)
|
Other
|
|
978
|
|
727
|
|
271
|
|
998
|
|
(2.0)
|
Total operating expenses
|
|
9,300
|
|
6,144
|
|
3,551
|
|
9,695
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
860
|
|
292
|
|
(4)
|
|
288
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
9
|
|
6
|
|
-
|
|
6
|
|
42.4
|
Interest expense, net
|
|
(220)
|
|
(194)
|
|
(85)
|
|
(279)
|
|
(21.2)
|
Other, net
|
|
(82)
|
|
(13)
|
|
(14)
|
|
(14)
|
(F)
|
nm
|
Total nonoperating expense, net
|
|
(293)
|
|
(201)
|
|
(99)
|
|
(287)
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
reorganization items, net
|
|
567
|
|
91
|
|
(103)
|
|
1
|
|
nm
|
Reorganization items,
net
|
|
-
|
|
(2,220)
|
|
-
|
|
(2,220)
|
|
(100.0)
|
Income (loss) before
income taxes
|
|
567
|
|
(2,129)
|
|
(103)
|
|
(2,219)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
|
(30)
|
|
(324)
|
|
52
|
|
(272)
|
|
(89.0)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
597
|
|
$
(1,805)
|
|
$
(155)
|
|
$
(1,947)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent
change may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Reflects
GAAP financial results for American Airlines Group Inc. ("AAG" or
the "Company"). AAG (formerly AMR Corporation) is a holding company
and its principal, wholly owned subsidiaries are American Airlines,
Inc. ("American") and, effective December 9, 2013 (the "effective
date"), US Airways Group, Inc. ("US Airways Group"). US Airways
Group became a subsidiary of AMR Corporation ("AMR") as a result of
a merger transaction. Also in connection with the merger, AMR
changed its name to American Airlines Group Inc. Therefore, the
results for the entire 2014 period include the results for US
Airways Group.
|
|
|
|
|
|
|
|
|
|
|
|
(B) US Airways
Group applied acquisition accounting as of December 9, 2013 and its
statements of operations for the period from December 9 through
December 31, 2013 reflected the related adjustments. As a result,
in accordance with GAAP, US Airways Group's consolidated financial
statements after December 9, 2013 are deemed not comparable to its
financial statements for any period prior to the merger. However,
to provide a basis for comparison to current year results, US
Airways Group has combined the results for the predecessor and
successor 2013 periods. Management believes this presentation
provides a more meaningful quarter over quarter
comparison.
|
|
|
|
|
|
|
|
|
|
|
|
(C) Under
GAAP, AAG does not include in its financial results the results of
US Airways Group prior to closing of the merger. This impacts the
comparability of AAG's financial statements under GAAP to the 2014
period. This table presents the fourth quarter results for 2013 on
a "combined basis." Combined basis means the Company combines the
financial results of AAG on a stand alone basis with the results of
US Airways Group. Management believes this presentation provides a
more meaningful quarter over quarter comparison. Please see GAAP to
non-GAAP reconciliations.
|
|
|
|
|
|
|
|
|
|
|
|
(D) Percent
change is a comparison of the combined results.
|
|
|
|
|
|
|
|
|
|
|
|
(E) Other
revenues in the 2013 three month period includes a $31 million
special credit related to a change in accounting method resulting
from the modification of the Company's AAdvantage miles agreement
with Citibank. Excluding this special credit, the quarter over
quarter increase in other revenues and total operating revenues was
14.4% and 2.1%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
(F) Combined
results exclude $13 million of US Airways Group nonoperating other,
net expense, which was eliminated in consolidation with AAG. This
expense represented a non-cash mark-to-market fair value adjustment
for US Airways Group's 7.25% convertible senior notes that were
convertible into shares of AAG common stock subsequent to the
merger.
|
American Airlines
Group Inc. (Formerly AMR Corporation)
|
Non-GAAP
Combined Consolidated Statements of Operations
|
Reflects
Combined Consolidated Results for AAG and US Airways Group,
Inc.
|
(In millions,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months Ended
December 31, 2013
|
|
|
|
|
12 Months Ended
December 31, 2014
|
|
American Airlines
Group
|
|
US Airways
Group
|
|
Combined
|
|
Percent
Change
|
|
|
(A)
|
|
|
|
(B)
|
|
(C)
|
|
(D)
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Mainline passenger
|
|
$
30,802
|
|
$
19,594
|
|
$
9,673
|
|
$
29,267
|
|
5.2
|
Regional passenger
|
|
6,322
|
|
2,927
|
|
3,348
|
|
6,275
|
|
0.8
|
Cargo
|
|
875
|
|
676
|
|
154
|
|
830
|
|
5.4
|
Other
|
|
4,651
|
|
2,615
|
|
1,432
|
|
4,047
|
(E)
|
14.9
|
Total operating revenues
|
|
42,650
|
|
25,812
|
|
14,607
|
|
40,419
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes
|
|
10,592
|
|
7,628
|
|
3,481
|
|
11,109
|
|
(4.7)
|
Salaries, wages and benefits
|
|
8,508
|
|
5,276
|
|
2,611
|
|
7,887
|
|
7.9
|
Regional expenses:
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
2,009
|
|
1,056
|
|
1,052
|
|
2,108
|
|
(4.7)
|
Other
|
|
4,507
|
|
2,056
|
|
2,253
|
|
4,309
|
|
4.6
|
Maintenance, materials and repairs
|
|
2,051
|
|
1,222
|
|
705
|
|
1,927
|
|
6.4
|
Other rent and landing fees
|
|
1,727
|
|
1,117
|
|
582
|
|
1,699
|
|
1.6
|
Aircraft rent
|
|
1,250
|
|
743
|
|
593
|
|
1,336
|
|
(6.4)
|
Selling expenses
|
|
1,544
|
|
1,128
|
|
480
|
|
1,608
|
|
(3.9)
|
Depreciation and amortization
|
|
1,295
|
|
830
|
|
302
|
|
1,132
|
|
14.3
|
Special items, net
|
|
800
|
|
282
|
|
415
|
|
697
|
|
14.8
|
Other
|
|
4,118
|
|
2,898
|
|
1,130
|
|
4,028
|
|
2.2
|
Total operating expenses
|
|
38,401
|
|
24,236
|
|
13,604
|
|
37,840
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
4,249
|
|
1,576
|
|
1,003
|
|
2,579
|
|
64.8
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
31
|
|
20
|
|
2
|
|
22
|
|
42.1
|
Interest expense, net
|
|
(887)
|
|
(836)
|
|
(348)
|
|
(1,184)
|
|
(25.1)
|
Other, net
|
|
(181)
|
|
(89)
|
|
(26)
|
|
(102)
|
(F)
|
78.4
|
Total nonoperating expense, net
|
|
(1,037)
|
|
(905)
|
|
(372)
|
|
(1,264)
|
|
(17.9)
|
|
|
|
|
|
|
|
|
|
|
|
Income before
reorganization items, net
|
|
3,212
|
|
671
|
|
631
|
|
1,315
|
|
nm
|
Reorganization items,
net
|
|
-
|
|
(2,655)
|
|
-
|
|
(2,655)
|
|
(100.0)
|
Income (loss) before
income taxes
|
|
3,212
|
|
(1,984)
|
|
631
|
|
(1,340)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
|
330
|
|
(346)
|
|
239
|
|
(107)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
2,882
|
|
$
(1,638)
|
|
$
392
|
|
$
(1,233)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
Note: Percent
change may not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Reflects
GAAP financial results for American Airlines Group Inc. ("AAG" or
the "Company"). AAG (formerly AMR Corporation) is a holding company
and its principal, wholly owned subsidiaries are American Airlines,
Inc. ("American") and, effective December 9, 2013 (the "effective
date"), US Airways Group, Inc. ("US Airways Group"). US Airways
Group became a subsidiary of AMR Corporation ("AMR") as a result of
a merger transaction. Also in connection with the merger, AMR
changed its name to American Airlines Group Inc. Therefore, the
results for the entire 2014 period include the results for US
Airways Group.
|
|
|
|
|
|
|
|
|
|
|
|
(B) US Airways
Group applied acquisition accounting as of December 9, 2013 and its
statements of operations for the period from December 9 through
December 31, 2013 reflected the related adjustments. As a result,
in accordance with GAAP, US Airways Group's consolidated financial
statements after December 9, 2013 are deemed not comparable to its
financial statements for any period prior to the merger. However,
to provide a basis for comparison to current year results, US
Airways Group has combined the results for the predecessor and
successor 2013 periods. Management believes this presentation
provides a more meaningful year over year comparison.
|
|
|
|
|
|
|
|
|
|
|
|
(C) Under
GAAP, AAG does not include in its financial results the results of
US Airways Group prior to closing of the merger. This impacts the
comparability of AAG's financial statements under GAAP to the 2014
period. This table presents the 2013 twelve month period results on
a "combined basis." Combined basis means the Company combines the
financial results of AAG on a stand alone basis with the results of
US Airways Group. Management believes this presentation provides a
more meaningful year over year comparison. Please see GAAP to
non-GAAP reconciliations.
|
|
|
|
|
|
|
|
|
|
|
|
(D) Percent
change is a comparison of the combined results.
|
|
|
|
|
|
|
|
|
|
|
|
(E) Other
revenues in the 2013 twelve month period includes a $31 million
special credit related to a change in accounting method resulting
from the modification of the Company's AAdvantage miles agreement
with Citibank. Excluding this special credit, the year over year
increase in other revenues and total operating revenues was 15.8%
and 5.6%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
(F) Combined
results exclude $13 million of US Airways Group nonoperating other,
net expense, which was eliminated in consolidation with AAG. This
expense represented a non-cash mark-to-market fair value adjustment
for US Airways Group's 7.25% convertible senior notes that were
convertible into shares of AAG common stock subsequent to the
merger.
|
American Airlines
Group Inc.
|
Combined Operating
Statistics
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
|
|
12 Months Ended
December 31,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
(A)
|
|
|
|
Mainline
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
46,522
|
|
46,889
|
|
(0.8)
|
%
|
|
195,651
|
|
194,026
|
|
0.8
|
%
|
Available seat miles
(ASM) (millions)
|
|
57,840
|
|
57,009
|
|
1.5
|
%
|
|
237,522
|
|
231,873
|
|
2.4
|
%
|
Passenger load factor
(percent)
|
|
80.4
|
|
82.2
|
|
(1.8)
|
pts
|
|
82.4
|
|
83.7
|
|
(1.3)
|
pts
|
Yield
(cents)
|
|
15.56
|
|
15.27
|
|
1.9
|
%
|
|
15.74
|
|
15.08
|
|
4.4
|
%
|
Passenger revenue per
ASM (cents)
|
|
12.51
|
|
12.56
|
|
(0.4)
|
%
|
|
12.97
|
|
12.62
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
35,305
|
|
35,239
|
|
0.2
|
%
|
|
145,574
|
|
143,747
|
|
1.3
|
%
|
Departures
(thousands)
|
|
282
|
|
281
|
|
0.4
|
%
|
|
1,144
|
|
1,140
|
|
0.3
|
%
|
Aircraft at end of
period
|
|
983
|
|
970
|
|
1.3
|
%
|
|
983
|
|
970
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block hours
(thousands)
|
|
858
|
|
846
|
|
1.4
|
%
|
|
3,514
|
|
3,454
|
|
1.7
|
%
|
Average stage length
(miles)
|
|
1,187
|
|
1,182
|
|
0.4
|
%
|
|
1,205
|
|
1,190
|
|
1.3
|
%
|
Fuel consumption
(gallons in millions)
|
|
881
|
|
882
|
|
(0.1)
|
%
|
|
3,644
|
|
3,608
|
|
1.0
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
2.52
|
|
3.06
|
|
(17.5)
|
%
|
|
2.91
|
|
3.08
|
|
(5.6)
|
%
|
Full-time equivalent
employees at end of period
|
|
94,400
|
|
91,500
|
|
3.2
|
%
|
|
94,400
|
|
91,500
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
13.32
|
|
14.17
|
|
(6.1)
|
%
|
|
13.42
|
|
13.55
|
|
(0.9)
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
12.51
|
|
13.30
|
|
(5.9)
|
%
|
|
13.09
|
|
13.25
|
|
(1.2)
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
8.67
|
|
8.57
|
|
1.1
|
%
|
|
8.63
|
|
8.46
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
(B)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
5,618
|
|
5,367
|
|
4.7
|
%
|
|
22,219
|
|
21,515
|
|
3.3
|
%
|
Available seat miles
(millions)
|
|
7,213
|
|
6,948
|
|
3.8
|
%
|
|
28,135
|
|
28,041
|
|
0.3
|
%
|
Passenger load factor
(percent)
|
|
77.9
|
|
77.2
|
|
0.7
|
pts
|
|
79.0
|
|
76.7
|
|
2.3
|
pts
|
Yield
(cents)
|
|
27.48
|
|
29.11
|
|
(5.6)
|
%
|
|
28.46
|
|
29.17
|
|
(2.4)
|
%
|
Passenger revenue per
ASM (cents)
|
|
21.40
|
|
22.48
|
|
(4.8)
|
%
|
|
22.47
|
|
22.38
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
13,021
|
|
12,471
|
|
4.4
|
%
|
|
51,766
|
|
49,993
|
|
3.5
|
%
|
Aircraft at end of
period
|
|
566
|
|
558
|
|
1.4
|
%
|
|
566
|
|
558
|
|
1.4
|
%
|
Fuel consumption
(gallons in millions)
|
|
174
|
|
170
|
|
2.4
|
%
|
|
688
|
|
687
|
|
0.1
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
2.51
|
|
3.04
|
|
(17.4)
|
%
|
|
2.92
|
|
3.07
|
|
(4.7)
|
%
|
Full-time equivalent
employees at end of period (C)
|
|
18,900
|
|
18,200
|
|
3.8
|
%
|
|
18,900
|
|
18,200
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
22.15
|
|
23.24
|
|
(4.7)
|
%
|
|
23.16
|
|
22.88
|
|
1.2
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
21.93
|
|
23.17
|
|
(5.4)
|
%
|
|
23.08
|
|
22.90
|
|
0.8
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
15.87
|
|
15.73
|
|
0.9
|
%
|
|
15.94
|
|
15.38
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mainline
& Regional
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
52,140
|
|
52,256
|
|
(0.2)
|
%
|
|
217,870
|
|
215,541
|
|
1.1
|
%
|
Available seat miles
(millions)
|
|
65,053
|
|
63,957
|
|
1.7
|
%
|
|
265,657
|
|
259,914
|
|
2.2
|
%
|
Cargo ton miles
(millions)
|
|
611
|
|
598
|
|
2.3
|
%
|
|
2,333
|
|
2,198
|
|
6.1
|
%
|
Passenger load factor
(percent)
|
|
80.1
|
|
81.7
|
|
(1.6)
|
pts
|
|
82.0
|
|
82.9
|
|
(0.9)
|
pts
|
Yield
(cents)
|
|
16.84
|
|
16.69
|
|
0.9
|
%
|
|
17.04
|
|
16.49
|
|
3.3
|
%
|
Passenger revenue per
ASM (cents)
|
|
13.50
|
|
13.64
|
|
(1.0)
|
%
|
|
13.97
|
|
13.67
|
|
2.2
|
%
|
Total revenue per ASM
(cents) (D)
|
|
15.62
|
|
15.56
|
|
0.4
|
%
|
|
16.05
|
|
15.54
|
|
3.3
|
%
|
Cargo yield per ton
mile (cents)
|
|
37.95
|
|
38.07
|
|
(0.3)
|
%
|
|
37.50
|
|
37.74
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
enplanements (thousands)
|
|
48,326
|
|
47,710
|
|
1.3
|
%
|
|
197,340
|
|
193,740
|
|
1.9
|
%
|
Aircraft at end of
period
|
|
1,549
|
|
1,528
|
|
1.4
|
%
|
|
1,549
|
|
1,528
|
|
1.4
|
%
|
Fuel consumption
(gallons in millions)
|
|
1,055
|
|
1,052
|
|
0.3
|
%
|
|
4,332
|
|
4,295
|
|
0.9
|
%
|
Average aircraft fuel
price including related taxes (dollars per gallon)
|
|
2.52
|
|
3.06
|
|
(17.5)
|
%
|
|
2.91
|
|
3.08
|
|
(5.5)
|
%
|
Full-time equivalent
employees at end of period (C)
|
|
113,300
|
|
109,700
|
|
3.3
|
%
|
|
113,300
|
|
109,700
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost per
ASM (cents)
|
|
14.30
|
|
15.16
|
|
(5.7)
|
%
|
|
14.45
|
|
14.56
|
|
(0.7)
|
%
|
Operating cost per
ASM excluding special items (cents)
|
|
13.56
|
|
14.37
|
|
(5.7)
|
%
|
|
14.14
|
|
14.29
|
|
(1.0)
|
%
|
Operating cost per
ASM excluding special items and fuel (cents)
|
|
9.47
|
|
9.35
|
|
1.3
|
%
|
|
9.40
|
|
9.21
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)Represents
the combined historical operating statistics of American and US
Airways.
|
(B)Regional
includes wholly owned regional airline subsidiaries and operating
results from capacity purchase carriers.
|
(C)Regional
full-time equivalent employees only include our wholly owned
regional airline subsidiaries.
|
(D)Total
operating revenues in the 2013 three and twelve month periods
excludes a $31 million special credit recorded to other revenues
related to a change in accounting method resulting from the
modification of the Company's AAdvantage miles agreement with
Citibank.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
American Airlines
Group Inc.
|
Combined Mainline
Revenue Statistics by Region
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
|
|
12 Months Ended
December 30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
|
|
|
(A)
|
|
|
|
|
|
|
(A)
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
30,591
|
|
30,397
|
|
0.6
|
%
|
|
125,916
|
|
124,276
|
|
1.3
|
%
|
Available seat miles
(ASM) (millions)
|
|
37,008
|
|
36,327
|
|
1.9
|
%
|
|
148,083
|
|
146,224
|
|
1.3
|
%
|
Passenger load factor
(percent)
|
|
82.7
|
|
83.7
|
|
(1.0)
|
pts
|
|
85.0
|
|
85.0
|
|
-
|
pts
|
Yield
(cents)
|
|
15.88
|
|
15.15
|
|
4.8
|
%
|
|
15.89
|
|
14.94
|
|
6.3
|
%
|
Passenger revenue per
ASM (cents)
|
|
13.12
|
|
12.67
|
|
3.6
|
%
|
|
13.51
|
|
12.70
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
7,477
|
|
7,880
|
|
(5.1)
|
%
|
|
32,093
|
|
32,181
|
|
(0.3)
|
%
|
Available seat miles
(ASM) (millions)
|
|
9,742
|
|
9,959
|
|
(2.2)
|
%
|
|
41,581
|
|
40,081
|
|
3.7
|
%
|
Passenger load factor
(percent)
|
|
76.8
|
|
79.1
|
|
(2.3)
|
pts
|
|
77.2
|
|
80.3
|
|
(3.1)
|
pts
|
Yield
(cents)
|
|
16.47
|
|
18.02
|
|
(8.6)
|
%
|
|
16.76
|
|
17.26
|
|
(2.9)
|
%
|
Passenger revenue per
ASM (cents)
|
|
12.64
|
|
14.25
|
|
(11.3)
|
%
|
|
12.94
|
|
13.86
|
|
(6.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
6,245
|
|
6,749
|
|
(7.5)
|
%
|
|
29,306
|
|
29,685
|
|
(1.3)
|
%
|
Available seat miles
(ASM) (millions)
|
|
8,233
|
|
8,390
|
|
(1.9)
|
%
|
|
37,573
|
|
35,967
|
|
4.5
|
%
|
Passenger load factor
(percent)
|
|
75.9
|
|
80.4
|
|
(4.5)
|
pts
|
|
78.0
|
|
82.5
|
|
(4.5)
|
pts
|
Yield
(cents)
|
|
14.14
|
|
13.57
|
|
4.2
|
%
|
|
14.89
|
|
14.16
|
|
5.2
|
%
|
Passenger revenue per
ASM (cents)
|
|
10.73
|
|
10.91
|
|
(1.7)
|
%
|
|
11.61
|
|
11.68
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
2,209
|
|
1,863
|
|
18.6
|
%
|
|
8,335
|
|
7,883
|
|
5.7
|
%
|
Available seat miles
(ASM) (millions)
|
|
2,858
|
|
2,332
|
|
22.6
|
%
|
|
10,285
|
|
9,601
|
|
7.1
|
%
|
Passenger load factor
(percent)
|
|
77.3
|
|
79.9
|
|
(2.6)
|
pts
|
|
81.0
|
|
82.1
|
|
(1.1)
|
pts
|
Yield
(cents)
|
|
12.09
|
|
11.83
|
|
2.1
|
%
|
|
12.66
|
|
11.89
|
|
6.4
|
%
|
Passenger revenue per
ASM (cents)
|
|
9.34
|
|
9.45
|
|
(1.2)
|
%
|
|
10.26
|
|
9.77
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passenger
miles (millions)
|
|
15,931
|
|
16,492
|
|
(3.4)
|
%
|
|
69,734
|
|
69,749
|
|
-
|
%
|
Available seat miles
(ASM) (millions)
|
|
20,833
|
|
20,681
|
|
0.7
|
%
|
|
89,439
|
|
85,649
|
|
4.4
|
%
|
Passenger load factor
(percent)
|
|
76.5
|
|
79.7
|
|
(3.2)
|
pts
|
|
78.0
|
|
81.4
|
|
(3.4)
|
pts
|
Yield
(cents)
|
|
14.95
|
|
15.50
|
|
(3.5)
|
%
|
|
15.48
|
|
15.33
|
|
1.0
|
%
|
Passenger revenue per
ASM (cents)
|
|
11.43
|
|
12.36
|
|
(7.5)
|
%
|
|
12.07
|
|
12.49
|
|
(3.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Represents
the combined historical mainline revenue statistics by region of
American and US Airways.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
Reconciliation of
GAAP Financial Information to Non-GAAP Financial
Information
|
|
|
|
|
|
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American Airlines
Group Inc. (the "Company") is providing the reconciliation of
reported non-GAAP financial measures to their comparable financial
measures on a GAAP basis. The Company believes that the non-GAAP
financial measures provide investors the ability to measure
financial performance excluding special items, which is more
indicative of the Company's ongoing performance and is more
comparable to measures reported by other major airlines. The
Company believes that the presentation of mainline and regional
CASM excluding fuel is useful to investors because both the cost
and availability of fuel are subject to many economic and political
factors beyond the Company's control. Management uses mainline and
regional CASM excluding special items and fuel to evaluate the
Company's operating performance.
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American Airlines
Group Inc. Combined (1)
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3 Months Ended
December 31,
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Percent
Change
|
12 Months Ended
December 31,
|
Percent
Change
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2014
|
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2013
|
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2014
|
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2013
|
|
|
Reconciliation of
Income Before Income Taxes Excluding
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(In millions, except
per share amounts)
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(In millions, except
per share amounts)
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Special
Items
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Income (loss) before
income taxes as reported
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$
567
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$ (2,219)
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$
3,212
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$ (1,340)
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Special
items:
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|
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|
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Other
revenue special item, net (2)
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-
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(31)
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-
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|
(31)
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|
Special
items, net (3)
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|
|
466
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|
497
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|
800
|
|
697
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Regional
operating special items, net (4)
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16
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5
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24
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(4)
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Nonoperating special items, net (5)
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|
31
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|
21
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|
132
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|
218
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Reorganization items, net (6)
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-
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2,220
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-
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2,655
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Income before income
taxes as adjusted for special items
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$
1,080
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$ 493
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119%
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$
4,168
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$ 2,195
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90%
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|
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3 Months Ended
December 31,
|
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12 Months Ended
December 31,
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|
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Calculation of
Operating Revenues and Pre-Tax Margin
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2014
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2013
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2014
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2013
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Excluding Special
Items
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Income before income
taxes as adjusted for special items
|
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$
1,080
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$ 493
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$
4,168
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$ 2,195
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Total operating
revenues
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$
10,160
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$ 9,983
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$
42,650
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$ 40,419
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Other
revenue special item, net (2)
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-
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(31)
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-
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(31)
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Total operating
revenues as adjusted for special items
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$
10,160
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$ 9,952
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2.1%
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$
42,650
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$ 40,388
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5.6%
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Pre-tax margin
excluding special items
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10.6%
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4.9%
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9.8%
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5.4%
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3 Months Ended
December 31,
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Percent
Change
|
12 Months Ended
December 31,
|
Percent
Change
|
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Reconciliation of
Net Income Excluding Special Items
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2014
|
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2013
|
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2014
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2013
|
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Net income (loss) as
reported
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$
597
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$ (1,947)
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$
2,882
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$ (1,233)
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Special
items:
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Other
revenue special item, net (2)
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-
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|
(31)
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-
|
|
(31)
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Special
items, net (3)
|
|
|
466
|
|
497
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|
800
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|
697
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Regional
operating special items, net (4)
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16
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5
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24
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(4)
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Nonoperating special items, net (5)
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|
31
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|
21
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|
132
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218
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Reorganization items, net (6)
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-
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2,220
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-
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2,655
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Non-cash
income tax provision (benefit) (7)
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(6)
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(324)
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346
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(324)
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Net tax
effect of special items
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-
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(5)
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-
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(29)
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Net income as
adjusted for special items
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$
1,104
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$ 436
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153%
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$
4,184
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$ 1,949
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115%
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|
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|
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Reconciliation of
Basic and Diluted Earnings Per Share As
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3 Months Ended
December 31, 2014
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12 Months Ended
December 31, 2014
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Adjusted for
Special Items
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Net income as
adjusted for special items
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$
1,104
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$
4,184
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Shares used for
computation (in thousands):
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Basic
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706,185
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717,456
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Diluted
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|
724,767
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734,016
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Earnings per share as
adjusted for special items:
|
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|
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Basic
|
|
|
|
$
1.56
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|
|
|
$
5.83
|
|
|
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Diluted
|
|
|
|
$
1.52
|
|
|
|
$
5.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
Percent
Change
|
12 Months Ended
December 31,
|
Percent
Change
|
|
Reconciliation of
Operating Income Excluding Special Items
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income as
reported
|
|
|
$
860
|
|
$ 288
|
|
$
4,249
|
|
$ 2,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenue special item, net (2)
|
|
|
-
|
|
(31)
|
|
-
|
|
(31)
|
|
|
Special
items, net (3)
|
|
|
466
|
|
497
|
|
800
|
|
697
|
|
|
Regional
operating special items, net (4)
|
|
|
16
|
|
5
|
|
24
|
|
(4)
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|
Operating income as
adjusted for special items
|
|
$
1,342
|
|
$ 759
|
77%
|
$
5,073
|
|
$ 3,241
|
57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
12 Months Ended
December 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Items and Fuel -
Mainline only
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
$
9,300
|
|
$ 9,695
|
|
$
38,401
|
|
$ 37,840
|
|
|
Less regional
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
|
|
(437)
|
|
(517)
|
|
(2,009)
|
|
(2,108)
|
|
|
Other
|
|
|
|
(1,161)
|
|
(1,098)
|
|
(4,507)
|
|
(4,309)
|
|
|
Total mainline
operating expenses
|
|
|
7,702
|
|
8,080
|
|
31,885
|
|
31,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (3)
|
|
|
(466)
|
|
(497)
|
|
(800)
|
|
(697)
|
|
|
Mainline operating
expenses, excluding special items
|
|
7,236
|
|
7,583
|
|
31,085
|
|
30,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes
|
|
|
(2,222)
|
|
(2,697)
|
|
(10,592)
|
|
(11,109)
|
|
|
Mainline operating
expenses, excluding special items and fuel
|
|
$
5,014
|
|
$ 4,886
|
|
$
20,493
|
|
$ 19,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainline operating
expenses per ASM
|
|
|
13.32
|
|
14.17
|
|
13.42
|
|
13.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net per ASM (3)
|
|
|
(0.81)
|
|
(0.87)
|
|
(0.34)
|
|
(0.30)
|
|
|
Mainline operating
expenses per ASM, excluding special items
|
|
12.51
|
|
13.30
|
|
13.09
|
|
13.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
|
(3.84)
|
|
(4.73)
|
|
(4.46)
|
|
(4.79)
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|
|
Mainline operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
|
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|
|
and fuel
|
|
|
|
8.67
|
|
8.57
|
|
8.63
|
|
8.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
12 Months Ended
December 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Items and Fuel -
Regional only
|
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total regional
operating expenses
|
|
|
$
1,598
|
|
$ 1,615
|
|
$
6,516
|
|
$ 6,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net (4)
|
|
|
(16)
|
|
(5)
|
|
(24)
|
|
4
|
|
|
Regional operating
expenses, excluding special items
|
|
1,582
|
|
1,610
|
|
6,492
|
|
6,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes
|
|
|
(437)
|
|
(517)
|
|
(2,009)
|
|
(2,108)
|
|
|
Regional operating
expenses, excluding special items and fuel
|
|
$
1,145
|
|
$ 1,093
|
|
$
4,483
|
|
$ 4,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional operating
expenses per ASM
|
|
|
22.15
|
|
23.24
|
|
23.16
|
|
22.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional
operating special items, net per ASM (4)
|
|
(0.23)
|
|
(0.07)
|
|
(0.08)
|
|
0.02
|
|
|
Regional operating
expenses per ASM, excluding special items
|
|
21.93
|
|
23.17
|
|
23.08
|
|
22.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes per ASM
|
|
|
(6.06)
|
|
(7.44)
|
|
(7.14)
|
|
(7.52)
|
|
|
Regional operating
expenses per ASM, excluding special items and fuel
|
|
15.87
|
|
15.73
|
|
15.94
|
|
15.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
12 Months Ended
December 31,
|
|
|
Reconciliation of
Operating Cost per ASM Excluding Special
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Items and Fuel -
Total Mainline and Regional
|
|
(in
millions)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
$
9,300
|
|
$ 9,695
|
|
$
38,401
|
|
$ 37,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (3)
|
|
|
(466)
|
|
(497)
|
|
(800)
|
|
(697)
|
|
|
Regional
operating special items, net (4)
|
|
|
(16)
|
|
(5)
|
|
(24)
|
|
4
|
|
|
Total operating
expenses, excluding special items
|
|
8,818
|
|
9,193
|
|
37,577
|
|
37,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel:
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
|
(2,222)
|
|
(2,697)
|
|
(10,592)
|
|
(11,109)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
|
(437)
|
|
(517)
|
|
(2,009)
|
|
(2,108)
|
|
|
Total operating
expenses, excluding special items and fuel
|
|
$
6,159
|
|
$ 5,979
|
|
$
24,976
|
|
$ 23,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in cents)
|
|
(in cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses per ASM
|
|
|
14.30
|
|
15.16
|
|
14.45
|
|
14.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items per
ASM:
|
|
|
|
|
|
|
|
|
|
|
|
Special
items, net (3)
|
|
|
(0.72)
|
|
(0.78)
|
|
(0.30)
|
|
(0.27)
|
|
|
Regional
operating special items, net (4)
|
|
|
(0.03)
|
|
(0.01)
|
|
(0.01)
|
|
-
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
13.56
|
|
14.37
|
|
14.14
|
|
14.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel per
ASM:
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel and related taxes - mainline
|
|
|
(3.42)
|
|
(4.22)
|
|
(3.99)
|
|
(4.27)
|
|
|
Aircraft
fuel and related taxes - regional
|
|
|
(0.67)
|
|
(0.81)
|
|
(0.76)
|
|
(0.81)
|
|
|
Total operating
expenses per ASM, excluding special items
|
|
|
|
|
|
|
|
|
|
|
and fuel
|
|
|
|
9.47
|
|
9.35
|
|
9.40
|
|
9.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may
not recalculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As noted on the
American Airlines Group Combined non-GAAP income statement, these
tables present the 2013 fourth quarter and twelve month periods'
results on a "combined basis." Combined basis means the Company
combines the financial results of American Airlines Group on a
stand alone basis with the results of US Airways Group for periods
prior to closing of the merger. Management believes this
presentation provides a more meaningful period over period
comparison.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The 2013 fourth
quarter and twelve month periods included a special credit to other
revenues related to a change in accounting method resulting from
the modification of the Company's AAdvantage miles agreement with
Citibank.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
The 2014 fourth
quarter mainline operating special items totaled a net charge of
$466 million, which principally included $280 million of merger
integration expenses related to information technology, alignment
of labor union contracts, professional fees, severance and
retention, share-based compensation, fleet restructuring,
re-branding of aircraft and airport facilities, relocation and
training. In addition, the Company recorded a net $116 million
charge for bankruptcy related items principally consisting of fair
value adjustments for bankruptcy settlement obligations as well as
a $70 million charge related primarily to certain spare parts asset
impairments. The 2014 twelve month period mainline operating
special items totaled a net charge of $800 million, which
principally included $810 million of merger integration expenses as
described above. In addition, the Company recorded a net charge of
$81 million for bankruptcy related items as described above, $164
million in other special charges, including an $81 million charge
to revise prior estimates of certain aircraft residual values, and
other asset impairments, as well as $54 million in charges
primarily relating to the buyout of certain aircraft leases. These
charges were offset in part by a $309 million gain on the sale of
slots at Ronald Reagan Washington National Airport.
|
|
|
|
|
|
The 2013 fourth
quarter mainline special items totaled a net charge of $497
million, which principally included $424 million of merger related
expenses related to the alignment of labor union contracts,
professional fees, severance, share-based compensation and fees for
US Airways to exit the Star Alliance and its codeshare agreement
with United Airlines. In addition, the Company recorded a $107
million charge related to its pilot long-term disability obligation
and a $33 million aircraft impairment charge. These charges were
offset in part by a $67 million gain on the sale of slots at
LaGuardia Airport. The 2013 twelve month period mainline special
items totaled a net charge of $697 million, which consisted of the
charges and gain discussed above as well as an additional $157
million in merger related expenses and a $43 million charge for
workers' compensation claims.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
The 2014 fourth
quarter regional operating special items totaled a net charge of
$16 million, which principally included a $24 million charge due to
a new pilot labor contract at the Company's Envoy regional
subsidiary, offset in part by an $8 million gain on the sale of
certain spare parts. The 2014 twelve month period regional
operating special items totaled a net charge of $24 million, which
consisted primarily of the above charge and gain as well as $7
million of merger integration expenses.
|
|
|
|
|
|
The 2013 fourth
quarter regional operating special items primarily consisted of
merger related expenses. The 2013 twelve month period regional
operating special items primarily consisted of a credit due to a
favorable arbitration ruling related to a vendor contract, offset
in part by merger related expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
The 2014 fourth
quarter nonoperating special items totaled a net charge of $31
million. As of December 31, 2014, approximately $656 million of the
Company's unrestricted cash and short-term investment balance was
held in Venezuelan bolivars. This balance includes approximately
$621 million valued at 6.3 bolivars and approximately $35 million
valued at 12.0 bolivars, with the rate depending on the date the
Company submitted its repatriation request to the Venezuelan
government. These rates are materially more favorable than the
exchange rates currently prevailing for other transactions
conducted outside of the Venezuelan government's currency exchange
system. The Company's cash balance held in Venezuelan bolivars
decreased $65 million from the September 30, 2014 balance of $721
million. In the fourth quarter of 2014, the Company incurred an $11
million foreign currency loss related to the receipt of $23 million
at a rate of 6.3 bolivars to the dollar for one of its 2012
repatriation requests originally valued at a rate of 4.3 bolivars
to the dollar. Accordingly, the Company revalued its remaining
pending 2012 repatriation requests from 4.3 to 6.3 bolivars to the
dollar resulting in additional foreign currency losses of $19
million. In total, the Company recognized a $30 million special
charge for these foreign currency losses in the fourth quarter of
2014. The Company has significantly reduced capacity in this
market. The Company is continuing to work with Venezuelan
authorities regarding the timing and exchange rate applicable to
the repatriation of funds held in local currency. The Company is
monitoring this situation closely and continues to evaluate its
holdings of Venezuelan bolivars for additional foreign currency
losses, which could be material. The 2014 twelve month period
nonoperating special items totaled a net charge of $132 million,
which primarily included the Venezuelan currency loss described
above as well as $56 million of early debt extinguishment costs
related to the prepayment of 7.50% senior secured notes and other
indebtedness and $33 million of non-cash interest accretion on the
bankruptcy settlement obligations.
|
|
|
|
|
|
The 2013 fourth
quarter nonoperating special items totaled $21 million primarily
related to interest charges to recognize post-petition interest
expense on unsecured obligations pursuant to the Company's Fourth
Amended Joint Chapter 11 Plan of Reorganization (the "Plan"). The
2013 twelve month period nonoperating special items totaled a net
charge of $218 million, which principally included interest charges
of $138 million to recognize post-petition interest expense as
described above as well as $110 million in charges primarily
related to debt extinguishment costs incurred in connection with
the repayment of high-interest aircraft financings and in
connection with conversions of the 7.25% convertible senior notes.
These charges were offset in part by a $30 million credit in
connection with an award received in an arbitration related to
previous investments in auction rate securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
In the 2013 fourth
quarter and twelve month periods, the Company recognized
reorganization expenses as a result of the filing of voluntary
petitions for relief under Chapter 11. These amounts consisted
primarily of estimated allowed claim amounts and professional
fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
During the 2014
fourth quarter, the Company recorded a special $6 million non-cash
deferred income tax benefit related to certain indefinite-lived
intangible assets. During the 2014 twelve month period, the Company
sold its portfolio of fuel hedging contracts that were scheduled to
settle on or after June 30, 2014. In connection with this sale, the
Company recorded a special non-cash tax provision of $330 million
in the second quarter of 2014 that reversed the non-cash tax
provision which was recorded in Other Comprehensive Income ("OCI"),
a subset of stockholders' equity, principally in 2009. This
provision represents the tax effect associated with gains recorded
in OCI principally in 2009 due to a net increase in the fair value
of the Company's fuel hedging contracts. In accordance with GAAP,
the Company retained the $330 million tax provision in OCI until
the last contract was settled or terminated. In addition, the 2014
twelve month period included a special $16 million non-cash
deferred income tax provision related to certain indefinite-lived
intangible assets.
|
|
|
|
|
|
The 2013 fourth
quarter and twelve month period included a $324 million of net
special income tax provision, which included a $538 million
non-cash income tax benefit resulting from gains recorded in Other
Comprehensive Income, offset in part by a $214 million non-cash
deferred income tax charge related to certain indefinite-lived
intangible assets.
|
|
American Airlines
Group Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
994
|
|
$
1,140
|
Short-term investments
|
6,309
|
|
8,111
|
Restricted cash and short-term investments
|
774
|
|
1,035
|
Accounts
receivable, net
|
1,771
|
|
1,560
|
Aircraft
fuel, spare parts and supplies, net
|
1,004
|
|
1,012
|
Prepaid
expenses and other
|
1,260
|
|
1,465
|
Total current
assets
|
12,112
|
|
14,323
|
|
|
|
|
Operating property
and equipment
|
|
|
|
Flight
equipment
|
28,213
|
|
23,730
|
Ground
property and equipment
|
5,900
|
|
5,585
|
Equipment purchase deposits
|
1,230
|
|
1,077
|
Total property and
equipment, at cost
|
35,343
|
|
30,392
|
Less
accumulated depreciation and amortization
|
(12,259)
|
|
(11,133)
|
Total property and
equipment, net
|
23,084
|
|
19,259
|
|
|
|
|
Other
assets
|
|
|
|
Goodwill
|
4,091
|
|
4,086
|
Intangibles, net
|
2,240
|
|
2,311
|
Other
assets
|
2,244
|
|
2,299
|
Total other
assets
|
8,575
|
|
8,696
|
|
|
|
|
Total
assets
|
$
43,771
|
|
$
42,278
|
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Current
maturities of long-term debt and capital leases
|
$
1,708
|
|
$
1,446
|
Accounts
payable
|
1,377
|
|
1,368
|
Accrued
salaries and wages
|
1,194
|
|
1,143
|
Air
traffic liability
|
4,252
|
|
4,380
|
Frequent
flyer liability
|
2,807
|
|
3,005
|
Other
accrued liabilities
|
2,113
|
|
2,464
|
Total current
liabilities
|
13,451
|
|
13,806
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
Long-term debt and capital leases, net of current
maturities
|
16,196
|
|
15,353
|
Pension
and postretirement benefits
|
7,548
|
|
5,828
|
Deferred
gains and credits, net
|
829
|
|
935
|
Mandatorily convertible preferred stock and other bankruptcy
settlement obligations
|
325
|
|
5,928
|
Other
liabilities
|
3,403
|
|
3,159
|
Total noncurrent
liabilities
|
28,301
|
|
31,203
|
|
|
|
|
Stockholders' equity
(deficit)
|
|
|
|
Common
stock
|
7
|
|
5
|
Additional paid-in capital
|
15,135
|
|
10,592
|
Accumulated other comprehensive loss
|
(4,561)
|
|
(2,032)
|
Accumulated deficit
|
(8,562)
|
|
(11,296)
|
Total stockholders'
equity (deficit)
|
2,019
|
|
(2,731)
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
$
43,771
|
|
$
42,278
|
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SOURCE American Airlines Group Inc.