2 Commercial update Sales and distribution progress American Airlines Group Inc. SECONER IAL July 24, 2025 2023 2024 2025 YTD Q2 +7% YTD % contribution to premium revenue ~77%1 ~74% ~75% +18% YTD Q2 2025 Q3 2025E Q2 2024 Q3 2024 Q4 2024 Q1 2025 Historical Share ~ (2%) (3% Initial Expectation (5%) (7%) (9%) (10%) (11%) Indirect Channel Flown Revenue Performance¹ 1. Indirect revenue channels contributed over $14B in annual revenue in 2023. Q3 2025E based on current expectations Source: Internal data Revenue s ...

Core Insights - American Airlines provided negative guidance for the current quarter and unusually wide full-year guidance, indicating challenges in maintaining competitive pre-tax margins [1][5]. Financial Performance - For the second quarter, American Airlines reported revenue of $14.4 billion, a 0.4% increase year-over-year. Net income was $628 million, or 91 cents per share, down from $717 million, or $1.01 per share in the same quarter last year [4]. - The company expects a current quarter loss per share between 10 cents and 60 cents, and for the full year, adjusted earnings are projected to range from a loss of 20 cents to a gain of 80 cents per share, with a midpoint of 30 cents [2][3]. Market Position - American Airlines' pre-tax margin was reported at 5.8%, significantly lower than competitors Delta (11.6%) and United (11%) [5]. - The airline noted strong demand in premium cabin travel for international routes, with Atlantic passenger unit revenue increasing by 5%. However, domestic PRASM (Passenger Revenue per Available Seat Mile) declined by 6.4% [6]. Future Outlook - CEO Robert Isom expressed optimism about the return of domestic travelers and indicated that high demand trends are expected to continue, despite challenges faced in July due to weather [2].

All right, let's get over to Phil Labau. He's got a special guest with him this morning, American Airlines CEO, Robert Isam. Phil, take it away.Thank you, Becky. Robert, thank you for joining us. You beat on the top and the bottom line for the second quarter, but it's the guidance that has the shares under pressure.Why such a wide range everywhere from losing for the full year 20 cents to making 80 cents a share. Why the wide range. Well, we're pleased first off with the beat on the second quarter.team did ...

Meanwhile, American Airlines just out with its quarterly results. Want to get over to Phil Leau. He's got those numbers.Phil. Andrew, take a look at shares of American Airlines under a little bit of pressure. This is probably due to the guidance that the company gave.We'll talk about that in just a little bit. In terms of the second quarter, this was a beat on the top and the bottom line. The company earning 91 cents a share compared to 78 cents a share was the estimate out there from the analysts.uh revenu ...

智通财经7月24日电，美国航空盘前股价下跌超5%，因公司预测第三季度亏损超出预期。 ...

Core Insights - American Airlines' third-quarter profit forecast has fallen short of expectations, with the company reinstating its 2025 financial forecast significantly below earlier projections [1] - The adjusted per-share loss forecast for 2025 is now estimated to be as much as 20 cents, or earnings of up to 80 cents, a substantial decrease from the previous adjusted earnings estimates of $1.70 to $2.70 made in January [2] - The airline industry, including American Airlines, withdrew its 2025 financial outlook in April due to fluctuating tariffs and weaker-than-expected demand [2] Financial Performance - In the second quarter, American Airlines reported an adjusted loss per share of 95 cents, which was worse than the Wall Street estimate of 78 cents [2] - The company's revenue for the second quarter was $14.39 billion, slightly below the expected $14.3 billion [2]

American Airlines reinstated its forecast this year, providing a wide range of possible outcomes that include a more optimistic outlook as domestic demand recovers https://t.co/A1C6Rau3fa ...

Group 1 - The company has reinstated its full-year guidance, projecting adjusted earnings per share to be between -$0.20 and $0.80 [1]

智通财经7月24日电，美国航空恢复全年业绩指引，预计调整后每股收益-0.20至0.80美元。 ...

Financial Performance - Total operating revenues for Q2 2025 were $14,392 million, a slight increase from $14,334 million in Q2 2024, with passenger revenues at $13,123 million[19]. - Net income for Q2 2025 was $599 million, down from $717 million in Q2 2024, resulting in diluted earnings per share of $0.91 compared to $1.01 in the previous year[20]. - Total operating revenues for the three months ended June 30, 2025, were $14,390 million, a slight increase from $14,333 million in Q2 2024[99]. - Total operating revenues for the first six months of 2025 were $26,940 million compared to $26,902 million in the same period of 2024[81]. - The company reported a net income of $718 million for the second quarter of 2025, a significant improvement compared to a net loss of $384 million in the previous quarter[89]. Operating Expenses - Operating expenses increased to $13,257 million in Q2 2025 from $12,950 million in Q2 2024, primarily driven by higher aircraft fuel costs, which were $2,663 million compared to $3,061 million in the prior year[19]. - Operating expenses for Q2 2025 totaled $13,248 million, an increase from $12,939 million in Q2 2024, with significant increases in aircraft fuel and related taxes, which were $2,663 million compared to $3,061 million in Q2 2024[81]. - Total operating expenses rose by $309 million, or 2.4%, in Q2 2025 compared to Q2 2024, with significant increases in salaries, wages, and benefits by $429 million, or 10.9%[196][197]. Cash Flow and Liquidity - Cash and restricted cash at the end of Q2 2025 totaled $931 million, an increase from $740 million at the end of Q2 2024[25]. - The company reported net cash provided by operating activities of $3,419 million for the first half of 2025, compared to $3,308 million for the same period in 2024[25]. - As of June 30, 2025, the company had $12.0 billion in total available liquidity, including $8.6 billion in unrestricted cash and short-term investments, and $3.4 billion in undrawn capacity under revolving credit and other facilities[154]. Debt and Liabilities - Long-term debt and finance leases, net of current maturities, stood at $25,276 million as of June 30, 2025, slightly up from $25,154 million at the end of 2024[23]. - Current liabilities rose to $25,771 million as of June 30, 2025, compared to $24,295 million at the end of 2024, with accounts payable increasing to $3,130 million[23]. - The company issued $400 million in special facility revenue bonds in May 2025, with $300 million maturing on December 1, 2035, and $100 million maturing on December 1, 2040[33]. Revenue Sources - Total passenger revenue for the three months ended June 30, 2025, was $13,123 million, compared to $13,202 million in 2024, reflecting a decrease of 0.6%[99]. - Cargo revenue increased by $16 million, or 8.2%, primarily due to a 6.9% increase in cargo yield[166]. - Other operating revenue rose by $121 million, or 13.0%, driven by higher revenue from the loyalty program, with cash payments from partners totaling $1.41 billion[167]. Stockholders' Equity - The company’s total stockholders' deficit improved to $(3,870) million as of June 30, 2025, from $(3,977) million at the end of 2024[23]. - Total stockholder's equity increased to $8.642 billion as of June 30, 2025, from $8.234 billion at December 31, 2024, reflecting a growth of 4.9%[86]. Legal and Regulatory Matters - The company is currently engaged in various legal proceedings, including antitrust actions related to the Northeast Alliance, which could have material financial impacts[78]. - The company intends to vigorously defend against the ongoing securities class action and shareholder derivative lawsuits, asserting that they are without merit[77]. Tax and NOLs - The company recorded an income tax provision of $239 million for the three months ended June 30, 2025, primarily due to the utilization of NOLs[57]. - As of December 31, 2024, American had approximately $12.9 billion of gross federal net operating losses (NOLs) available to reduce future taxable income[54].