Financial Data and Key Metrics Changes - American Airlines Group reported a first quarter GAAP net loss of $473 million, with an adjusted loss of $386 million, or $0.59 per diluted share [30] - First quarter revenue was $12.6 billion, down 0.2% year over year, while unit revenue increased by 0.7% year over year [31] - First quarter unit cost excluding fuel and net special items was up 7.8% year over year [31] - The company ended the first quarter with $10.8 billion in total available liquidity and produced free cash flow of $1.7 billion during the quarter [34] Business Line Data and Key Metrics Changes - Domestic passenger RASM decreased by 0.7% year over year, while premium revenue increased by 3% year over year [16][31] - Long-haul international passenger RASM led the way, with Atlantic passenger RASM up 10.5% and Pacific passenger RASM up 4.9% [14][15] - Managed business revenue was up 8% year over year, with specific strength noted in the financial and professional services sectors [19] Market Data and Key Metrics Changes - The company experienced strong demand for international travel from the US, particularly in the Atlantic and Pacific regions [15] - Short-haul Latin passenger RASM increased year over year for the first time in over a year, indicating a recovery in that market [15] - The company noted significant weakness in demand from indirect channels, particularly among price-sensitive customers [58] Company Strategy and Development Direction - The company is focused on enhancing its partnership with Citi, growing its Advantage loyalty program, and improving customer experience [13] - American Airlines Group aims to deliver sustainable free cash flow and strengthen its balance sheet while navigating the current economic environment [10][12] - The company is committed to transforming customer experience and has established a new customer experience organization to improve all aspects of the customer journey [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging economic environment impacting demand and has withdrawn its full-year outlook due to uncertainty [9] - Despite the challenges, management expects to deliver a profitable year and produce positive free cash flow if current demand trends continue [10] - The company remains cautious about capacity deployment and plans to adjust based on demand and competitive conditions [21] Other Important Information - The company completed its fleet renewal with low aircraft CapEx requirements for the remainder of the decade [11] - American Airlines Group has the youngest fleet among US network carriers and is committed to improving customer experience through various initiatives [23][24] - The company is on track to open its newest flagship lounge in Philadelphia in May, further enhancing its premium offerings [25] Q&A Session Summary Question: Capacity moderation in light of demand weakness - Management indicated that they have set their capacity plan for the summer with a growth expectation of 2% to 4% [47] - There is a negative bias towards future capacity adjustments based on demand trends [48] Question: Corporate share recovery and yield expectations - Corporate share recovery is on track, and yields are expected to meet management's expectations [51] Question: Performance across international entities - Strength is noted across international operations, particularly in Europe and South America, with solid performance expected through the summer [54] Question: Domestic demand trends - Domestic main cabin demand is weak, particularly among price-sensitive customers, but premium bookings remain strong [58] Question: Impact of the tragic accident on bookings - The impact of the accident was significant in the first quarter but is not expected to affect future performance [128] Question: Corporate travel expectations - Business travel remains strong, with no significant pullback observed at this time [151]