An American Airlines Embraer 175 takes to the tarmac in Dallas in June 2021. (Photo by ANDREW ... [+] CABALLERO-REYNOLDS)AFP via Getty ImagesAmerican Airlines CEO Robert Isom extolled Brazilian aircraft maker Embraer and excoriated Boeing Boeing on the carrier’s earnings call Thursday.“I want to give a shoutout to Embraer,” Isom said. “They have delivered day in and day out. The rest of the industry could learn a lot from them.”As for Boeing, Isom declared “I’ve talked to everyone at Boeing that I can possi ...

• • • • • • • ® • ...

A Boeing 737 passenger aircraft of American Airlines arrives from Austin at JFK International Airport in New York as the Manhattan skyline looms in the background on February 7, 2024.American Airlines swung to a loss in the first quarter but its forecast for the current period surpassed analysts' estimates, sending shares roughly 4% higher.American expects to earn between $1.15 and $1.45 per share in the second quarter, on an adjusted basis, largely above the $1.18 analysts compiled by LSEG estimated on ave ...

PART I: FINANCIAL INFORMATION [Item 1A. Condensed Consolidated Financial Statements of American Airlines Group Inc.](index=7&type=section&id=Item%201A.%20Condensed%20Consolidated%20Financial%20Statements%20of%20American%20Airlines%20Group%20Inc.) This section presents the unaudited condensed consolidated financial statements for American Airlines Group Inc. (AAG) for the quarter ended March 31, 2024, including key financial statements and notes [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, AAG reported a net loss of $312 million due to increased operating expenses, despite a slight rise in total operating revenues AAG Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total operating revenues** | **$12,570** | **$12,189** | | Passenger | $11,458 | $11,103 | | **Total operating expenses** | **$12,563** | **$11,751** | | Salaries, wages and benefits | $3,867 | $3,281 | | Aircraft fuel and related taxes | $2,980 | $3,167 | | **Operating income** | **$7** | **$438** | | **Net income (loss)** | **($312)** | **$10** | | **Diluted EPS** | **($0.48)** | **$0.02** | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, AAG's total assets increased to $64.38 billion, while total liabilities reached $69.88 billion, widening the stockholders' deficit to $5.50 billion AAG Condensed Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$64,384** | **$63,058** | | Total current assets | $14,542 | $13,572 | | Total property and equipment, net | $31,157 | $30,764 | | **Total Liabilities** | **$69,884** | **$68,260** | | Total current liabilities | $24,993 | $22,062 | | Long-term debt and finance leases, net | $28,228 | $29,270 | | **Total stockholders' deficit** | **($5,500)** | **($5,202)** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $2.18 billion in Q1 2024, with significant cash used in investing and financing activities AAG Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$2,180** | **$3,333** | | **Net cash used in investing activities** | **($1,516)** | **($2,796)** | | Capital expenditures and aircraft purchase deposits | ($824) | ($505) | | **Net cash used in financing activities** | **($642)** | **($539)** | | Payments on long-term debt and finance leases | ($873) | ($2,326) | [Notes to the Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail special charges, revenue breakdown, total long-term debt, and the status of legal proceedings related to the Northeast Alliance - Special items in Q1 2024 included a **$57 million charge** for labor contract expenses related to a new agreement with mainline passenger service team members[36](index=36&type=chunk) Operating Revenue Breakdown (in millions) | Revenue Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Passenger | $11,458 | $11,103 | | Cargo | $187 | $223 | | Other | $925 | $863 | | **Total** | **$12,570** | **$12,189** | - As of March 31, 2024, AAG had total long-term debt of **$32.18 billion** and available liquidity under revolving credit and other facilities of **$3.21 billion**[44](index=44&type=chunk) - The company is appealing a court decision that enjoined the Northeast Alliance (NEA) with JetBlue. JetBlue terminated the NEA in July 2023. The company is also defending against related private party class action lawsuits[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [Item 1B. Condensed Consolidated Financial Statements of American Airlines, Inc.](index=23&type=section&id=Item%201B.%20Condensed%20Consolidated%20Financial%20Statements%20of%20American%20Airlines%2C%20Inc.) This section provides the financial statements for American Airlines, Inc., showing a net loss of $216 million in Q1 2024 and total assets of $70.53 billion American Airlines, Inc. Financial Highlights (Unaudited) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Total operating revenues | $12,569 | $12,188 | | Operating income | $13 | $439 | | Net income (loss) | ($216) | $85 | American Airlines, Inc. Balance Sheet Highlights (Unaudited) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Assets | $70,533 | $69,074 | | Total Liabilities | $64,147 | $62,497 | | Total stockholder's equity | $6,386 | $6,577 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2024 pre-tax loss of $413 million, driven by increased labor and maintenance costs, and outlines future capital commitments and liquidity [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Operating revenues increased 3.1% to $12.6 billion, offset by a 6.9% rise in operating expenses, primarily due to higher salaries and maintenance costs - The period-over-period decrease in pre-tax income was principally driven by an increase in salaries, wages and benefits from the new pilot collective bargaining agreement ratified in August 2023, as well as higher maintenance expenses and landing fees[117](index=117&type=chunk)[118](index=118&type=chunk) Change in Operating Revenues (Q1 2024 vs Q1 2023) | Revenue Category | Change (in millions) | Percent Change | | :--- | :--- | :--- | | Passenger | $355 | 3.2% | | Cargo | ($36) | (16.0)% | | Other | $62 | 7.2% | | **Total** | **$381** | **3.1%** | Change in Operating Expenses (Q1 2024 vs Q1 2023) | Expense Category | Change (in millions) | Percent Change | | :--- | :--- | :--- | | Aircraft fuel and related taxes | ($187) | (5.9)% | | Salaries, wages and benefits | $586 | 17.8% | | Maintenance, materials and repairs | $172 | 24.2% | | Other rent and landing fees | $111 | 15.8% | | **Total** | **$812** | **6.9%** | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) AAG maintained $11.5 billion in total liquidity as of March 31, 2024, despite a decrease in net cash from operating activities due to pension and profit-sharing payouts - Total available liquidity for AAG was **$11.5 billion** as of March 31, 2024[169](index=169&type=chunk) - Net cash from operating activities decreased by **$1.2 billion** year-over-year, driven by a net loss, required pension contributions (**$280M**), and the payout of the 2023 profit sharing program (**$261M**)[172](index=172&type=chunk) - In Q1 2024, the company had capital expenditures of **$824 million**, mainly for the purchase of six Embraer 175 and two Airbus A321neo aircraft[173](index=173&type=chunk) [Commitments](index=47&type=section&id=Commitments) The company has significant future commitments, including definitive purchase agreements for 439 new aircraft and $103.4 billion in total contractual obligations Firm Aircraft Purchase Commitments as of March 31, 2024 | Manufacturer | Aircraft Family | Total Orders | | :--- | :--- | :--- | | Airbus | A320neo Family | 149 | | Boeing | 737 MAX Family | 159 | | Boeing | 787 Family | 30 | | Embraer | 175 | 101 | | **Total** | | **439** | - In March 2024, the company entered into new definitive agreements to purchase **85 Airbus A321neo**, **85 Boeing 737-10 MAX**, and **90 Embraer 175 aircraft**, with options for additional aircraft[184](index=184&type=chunk)[191](index=191&type=chunk) - Total contractual obligations for AAG are estimated at **$103.4 billion**, including **$28.5 billion** for aircraft and engine purchase commitments[193](index=193&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposures are from aircraft fuel prices, foreign currency exchange rates, and interest rates, with potential significant impacts on expenses - The company is **fully exposed** to fluctuations in fuel prices as it did not have any fuel hedging contracts outstanding as of March 31, 2024[199](index=199&type=chunk) - Based on 2024 forecasted fuel consumption, a **one-cent per gallon increase** in aircraft fuel price would increase annual fuel expense by approximately **$45 million**[199](index=199&type=chunk) - A **100 basis point increase** in annual interest rates would increase annual interest expense on variable-rate debt by approximately **$100 million** and increase annual interest income on short-term investments by approximately **$80 million**[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2024, management concluded that AAG's and American's disclosure controls and procedures were **effective at a reasonable assurance level**[203](index=203&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[204](index=204&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for information on legal proceedings, primarily focusing on antitrust actions related to the now-terminated Northeast Alliance with JetBlue - For information on legal proceedings, the report refers to Note 12 in Part I, Items 1A and 1B[208](index=208&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks, including economic downturns, high debt levels, intense competition, labor disputes, fuel price volatility, and reliance on limited aircraft suppliers - The company's high level of debt and other obligations may limit its ability to fund corporate requirements, obtain additional financing, and respond to competitive or economic changes[212](index=212&type=chunk) - The airline industry is intensely competitive, with significant pressure from low-cost and ultra-low-cost carriers, which could adversely affect revenues and performance[225](index=225&type=chunk)[226](index=226&type=chunk) - The business is highly dependent on the price and availability of aircraft fuel and is **fully exposed** to price fluctuations due to a policy of not hedging fuel consumption[262](index=262&type=chunk)[266](index=266&type=chunk) - A shortage of qualified pilots, driven by retirements and increased training requirements, has impacted and could continue to materially adversely affect the business, particularly at regional affiliates[303](index=303&type=chunk)[305](index=305&type=chunk) - The company relies on a limited number of suppliers like Airbus and Boeing for aircraft, making it vulnerable to production delays, design defects, and supply chain issues, which have recently been commonplace[307](index=307&type=chunk)[309](index=309&type=chunk) - The company faces significant risks from cyberattacks and evolving data privacy laws, which could lead to operational disruptions, data loss, litigation, and reputational harm[314](index=314&type=chunk)[319](index=319&type=chunk) [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2024, none of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement - During the quarter ended March 31, 2024, **no directors or executive officers adopted or terminated** a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement[348](index=348&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to aircraft purchase agreements with Airbus and Boeing, severance agreements, and CEO/CFO certifications as required by the Sarbanes-Oxley Act - The exhibits section lists various agreements and certifications filed with the report, including amendments to purchase agreements with Airbus and Boeing, and severance agreements for executives[352](index=352&type=chunk) [Signatures](index=82&type=section&id=SIGNATURES) The report is duly signed on April 25, 2024, by Devon E. May, Executive Vice President and Chief Financial Officer, on behalf of both American Airlines Group Inc. and American Airlines, Inc - The report was signed on April 25, 2024, by the Executive Vice President and Chief Financial Officer for both American Airlines Group Inc. and American Airlines, Inc[356](index=356&type=chunk)[358](index=358&type=chunk)

Financial Performance - Record first-quarter revenue of approximately $12.6 billion, representing a 3.1% increase from the previous year[4] - First-quarter net loss of $312 million, or ($0.48) per diluted share; excluding special items, the net loss was $226 million, or ($0.34) per diluted share[2] - Operating income excluding net special items was $77 million, down 83.0% from $451 million in 2023[24] - Net income excluding net special items was reported at $(226) million, compared to $33 million in 2023[26] - Total operating revenues for the first quarter were $12,570 million, an increase from $12,189 million in 2023[24] Cash Flow and Investments - Generated operating cash flow of $2.2 billion and free cash flow of $1.4 billion in the first quarter[2] - Net cash provided by operating activities for Q1 2024 was $2,180 million, a decrease of 34.6% compared to $3,333 million in Q1 2023[28] - Free cash flow for Q1 2024 was $1,370 million, calculated as net cash provided by operating activities minus adjusted net cash used in investing activities of $810 million[33] - The company reported a net cash used in investing activities of $1,516 million for Q1 2024, a decrease of 45.8% from $2,796 million in Q1 2023[28] Debt and Liabilities - Reduced total debt by nearly $950 million, achieving over 80% of the $15 billion debt reduction goal by the end of 2025[6] - Long-term debt and finance leases, net of current maturities, decreased to $28,228 million from $29,270 million, a reduction of 3.6%[36] - The company’s total current liabilities increased to $24,993 million as of March 31, 2024, compared to $22,062 million at the end of 2023, marking an increase of 13.2%[36] Operational Metrics - Passenger revenue miles increased by 10.5% to 57,473 million compared to the same quarter last year[17] - Passenger load factor improved by 1.5 percentage points to 81.5%[17] - Domestic revenue passenger miles increased to 38,812 million, up 8.6% from 35,750 million in 2023[21] - Latin America revenue passenger miles rose to 10,096 million, reflecting a 12.1% increase from 9,008 million in 2023[21] - Total international revenue passenger miles reached 18,661 million, a 14.7% increase compared to 16,264 million in 2023[21] - Passenger load factor for domestic operations improved to 82.4%, up 2.2 percentage points from 80.2% in 2023[21] - Yield per passenger mile decreased to 21.29 cents, down 5.3% from 22.48 cents in 2023[21] Expenses - Operating expenses increased by 6.9% to $12.563 billion, driven by higher salaries and benefits[14] - Total operating expenses were $12,563 million, compared to $11,751 million in 2023[26] - Total operating expenses per available seat mile (CASM) was reported at 17.82 cents, down from 18.08 cents in 2023[26] Future Outlook - The company expects second-quarter 2024 adjusted earnings per diluted share to be between $1.15 and $1.45, and full-year adjusted earnings per diluted share to be between $2.25 and $3.25[7] Asset Management - Current assets increased to $14,542 million as of March 31, 2024, compared to $13,572 million at the end of 2023, reflecting a growth of 7.2%[36] - Total assets reached $64,384 million as of March 31, 2024, an increase of 2.1% from $63,058 million at the end of 2023[36] - Total cash and restricted cash at the end of Q1 2024 was $703 million, up from $584 million at the end of Q1 2023, representing an increase of 20.3%[29] Capital Expenditures - Capital expenditures and aircraft purchase deposits for Q1 2024 amounted to $824 million, compared to $505 million in Q1 2023, indicating a significant increase of 63.4%[28] Operational Efficiency - The company achieved its best-ever first-quarter completion factor and improved mishandled baggage rates year over year[3] - Average aircraft fuel price decreased by 12.8% to $2.86 per gallon[17] Comprehensive Loss - The accumulated other comprehensive loss was reported at $(4,877) million as of March 31, 2024, slightly improved from $(4,894) million at the end of 2023[36]

American Airlines (AAL) , one of the world’s leading airline companies, is set to report first-quarter 2024 results on Apr 25, and as always, market participants are eagerly waiting for the release. Some investors may be deliberating whether to purchase the stock of this airline heavyweight before Thursday or wait for a better entry point.Impressive Price PerformanceDriven by the buoyant scenario with respect to air travel demand, the stock has performed impressively on the bourse of late. The AAL stock has ...

Depending on who you ask, a recession is either right around the corner or the stock market is ready to rattle off a seismic bull run. As always, the answer is likely somewhere in the middle of those two extremes. But due to the uncertainty surrounding the Federal Reserve’s rate cuts, traders are stuck in a holding pattern until more data defines the country's fiscal path.Since bargains become popular when times are uncertain, we’d like to introduce a new weekly segment: Cheap Seats. Every week, we will pro ...

Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. (AAL) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because American Airlines is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — ...

We have entered the heart of the 2024 Q1 earnings cycle with a notably stacked earnings schedule on deck for this week. The period has primarily been positive so far, with the big banks’ results not causing any spooks.This week, we’ll hear from American Airlines (AAL) and Southwest Airlines (LUV) . What can investors expect? We can use results from a peer, United Airlines (UAL) , as a small read-through. Let’s take a closer look.United Airlines Concerning headline figures, UAL posted a 71% beat relative to ...

The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies to name a few.Improvement in the demand scenario from the pandemic lows is a major positive. The uptick in trading volumes is likely to have aided the performance of transportation companies in the soon-to-be-reported quarter.However, high fuel costs are likely to have hurt the first-quarter performance of transportation companies. Fuel expenses represent a key input cost for any transportat ...