American Airlines Group Reports July Traffic
09 August 2016 - 10:00PM
American Airlines Group (NASDAQ:AAL) today reported July and
year-to-date 2016 traffic results.
American Airlines Group’s total revenue passenger miles (RPMs)
were 21.7 billion, down 0.3 percent versus July 2015. Total
capacity was 25.5 billion available seat miles (ASMs), up 2.3
percent versus July 2015. Total passenger load factor was 85.2
percent, down 2.1 percentage points versus July 2015.
The Company expects its third quarter 2016 total revenue per
available seat mile to be down approximately 3.0 to 5.0 percent
year-over-year. In addition, the Company continues to expect its
third quarter pretax margin excluding special items1 to be
between 12 and 14 percent.
The following summarizes American Airlines Group traffic results
for the month and year-to-date ended July 31, 2016, and 2015,
consisting of mainline-operated flights, wholly owned regional
subsidiaries and operating results from capacity purchase
agreements.
1 American is unable to reconcile certain forward-looking
projections to GAAP as the nature or amount of special items cannot
be determined at this time
American
Airlines Group Traffic Results |
|
July |
|
|
Year to Date |
|
|
2016 |
2015 |
Change |
|
|
2016 |
2015 |
Change |
|
|
|
|
Revenue
Passenger Miles (000) |
|
|
|
Domestic |
12,205,646 |
12,311,374 |
|
(0.9 |
) |
% |
|
76,013,666 |
75,066,344 |
|
1.3 |
|
% |
|
Atlantic |
3,177,440 |
3,322,743 |
|
(4.4 |
) |
% |
|
15,857,451 |
16,315,606 |
|
(2.8 |
) |
% |
|
Latin America |
2,841,796 |
3,010,487 |
|
(5.6 |
) |
% |
|
18,317,507 |
18,763,461 |
|
(2.4 |
) |
% |
|
Pacific |
1,209,681 |
939,672 |
|
28.7 |
|
% |
|
7,393,165 |
5,919,756 |
|
24.9 |
|
% |
|
International |
7,228,917 |
7,272,902 |
|
(0.6 |
) |
% |
|
41,568,123 |
40,998,823 |
|
1.4 |
|
% |
|
Mainline |
19,434,563 |
19,584,276 |
|
(0.8 |
) |
% |
|
117,581,790 |
116,065,167 |
|
1.3 |
|
% |
|
Regional |
2,276,885 |
2,191,846 |
|
3.9 |
|
% |
|
14,236,057 |
13,721,610 |
|
3.7 |
|
% |
|
Total Revenue Passenger
Miles |
21,711,448 |
21,776,122 |
|
(0.3 |
) |
% |
|
131,817,847 |
129,786,777 |
|
1.6 |
|
% |
|
|
|
|
|
|
|
|
|
Available Seat
Miles (000) |
|
|
|
|
|
|
|
Domestic |
13,962,902 |
13,703,223 |
|
1.9 |
|
% |
|
89,206,840 |
87,696,579 |
|
1.7 |
|
% |
|
Atlantic |
3,956,752 |
3,963,841 |
|
(0.2 |
) |
% |
|
21,526,911 |
21,285,154 |
|
1.1 |
|
% |
|
Latin America |
3,380,852 |
3,544,646 |
|
(4.6 |
) |
% |
|
23,330,138 |
24,032,630 |
|
(2.9 |
) |
% |
|
Pacific |
1,399,944 |
1,084,720 |
|
29.1 |
|
% |
|
8,870,779 |
7,055,243 |
|
25.7 |
|
% |
|
International |
8,737,548 |
8,593,207 |
|
1.7 |
|
% |
|
53,727,828 |
52,373,027 |
|
2.6 |
|
% |
|
Mainline |
22,700,450 |
22,296,430 |
|
1.8 |
|
% |
|
142,934,668 |
140,069,606 |
|
2.0 |
|
% |
|
Regional |
2,796,000 |
2,635,239 |
|
6.1 |
|
% |
|
18,376,768 |
17,052,676 |
|
7.8 |
|
% |
|
Total Available Seat
Miles |
25,496,450 |
24,931,669 |
|
2.3 |
|
% |
|
161,311,436 |
157,122,282 |
|
2.7 |
|
% |
|
|
|
|
|
|
|
|
|
Load Factor
(%) |
|
|
|
|
|
|
|
Domestic |
87.4 |
89.8 |
|
(2.4 |
) |
pts |
85.2 |
85.6 |
|
(0.4 |
) |
pts |
|
Atlantic |
80.3 |
83.8 |
|
(3.5 |
) |
pts |
73.7 |
76.7 |
|
(3.0 |
) |
pts |
|
Latin America |
84.1 |
84.9 |
|
(0.8 |
) |
pts |
78.5 |
78.1 |
|
0.4 |
|
pts |
|
Pacific |
86.4 |
86.6 |
|
(0.2 |
) |
pts |
83.3 |
83.9 |
|
(0.6 |
) |
pts |
|
International |
82.7 |
84.6 |
|
(1.9 |
) |
pts |
77.4 |
78.3 |
|
(0.9 |
) |
pts |
|
Mainline |
85.6 |
87.8 |
|
(2.2 |
) |
pts |
82.3 |
82.9 |
|
(0.6 |
) |
pts |
|
Regional |
81.4 |
83.2 |
|
(1.8 |
) |
pts |
77.5 |
80.5 |
|
(3.0 |
) |
pts |
|
Total Load
Factor |
85.2 |
87.3 |
|
(2.1 |
) |
pts |
81.7 |
82.6 |
|
(0.9 |
) |
pts |
|
|
|
|
|
|
|
|
|
|
|
|
Enplanements |
|
|
|
|
|
|
|
|
|
Mainline |
13,598,779 |
13,968,670 |
|
(2.6 |
) |
% |
|
85,844,714 |
85,742,920 |
|
0.1 |
|
% |
|
Regional |
4,999,030 |
5,064,691 |
|
(1.3 |
) |
% |
|
31,618,817 |
31,683,976 |
|
(0.2 |
) |
% |
|
Total
Enplanements |
18,597,809 |
19,033,361 |
|
(2.3 |
) |
% |
|
117,463,531 |
117,426,896 |
|
- |
|
% |
|
|
|
|
|
|
|
|
|
|
|
System Cargo
Ton Miles (000) |
201,356 |
190,501 |
|
5.7 |
|
% |
|
1,354,320 |
1,338,042 |
|
1.2 |
|
% |
|
|
|
|
|
|
|
Notes: |
|
|
|
1)
Canada, Puerto Rico and U.S. Virgin Islands are included in
the domestic results. |
2)
Latin America numbers include the Caribbean. |
3)
Regional includes wholly owned subsidiaries and operating
results from capacity purchase carriers. |
About American Airlines Group
American Airlines and American Eagle offer an average of nearly
6,700 flights per day to nearly 350 destinations in more than 50
countries. American has hubs in Charlotte, Chicago, Dallas/Fort
Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and
Washington, D.C. American is a founding member of
the oneworld® alliance, whose members serve more than 1,000
destinations with about 14,250 daily flights to over 150 countries.
Shares of American Airlines Group Inc. trade on Nasdaq under the
ticker symbol AAL. In 2015, its stock joined the S&P 500 index.
Connect with American on Twitter @AmericanAir and at
Facebook.com/AmericanAirlines.
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, statements about the
expected third quarter pretax margin, the expected change in total
revenue per available seat mile, the Company’s plans, objectives,
estimates, expectations and intentions, 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 the following:
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.; costs of ongoing data security
compliance requirements and the impact of any significant data
security breach; 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
postretirement 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 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 on the airline
industry; 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 and noise
regulation; the impact associated with climate change, including
increased regulation to reduce emissions of greenhouse gases; 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; 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, more stringent duty-time
regulations, increased flight hour requirements for commercial
airline pilots and other factors that have caused a shortage of
pilots; the impact of possible future increases in insurance costs
or reductions in available insurance coverage; the effect on the
Company’s financial position and liquidity of being party to or
involved in litigation; an inability to use net operating losses
carried forward from prior taxable years (NOL Carryforwards); any
impairment in the amount of the Company’s goodwill and an inability
to realize the full value of the Company’s 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; the
effects of the Company’s capital deployment program and the
limitation, suspension or discontinuation of the Company’s share
repurchase programs or dividend payments thereunder; 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
Restated Certificate of Incorporation and Amended and Restated
Bylaws that limit ownership and voting of its equity interests,
including its common stock; the effect of limitations in the
Company’s Restated 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 quarter ended June 30, 2016 (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 SEC. 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. 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 other than as required by law.
Corporate Communications
817-967-1577
mediarelations@aa.com
Investor Relations
817-931-3423
investor.relations@aa.com
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