AAL
$45.31
American Airlines Gp
($.69)
(1.50%)
Earnings Details
2nd Quarter June 2017
Friday, July 28, 2017 7:30:22 AM
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Summary

American Airlines Gp Beats

American Airlines Gp (AAL) reported 2nd Quarter June 2017 earnings of $1.92 per share on revenue of $11.1 billion. The consensus earnings estimate was $1.87 per share on revenue of $11.1 billion. The Earnings Whisper number was $1.75 per share. Revenue grew 7.2% on a year-over-year basis.

American Airlines Group Inc, through its subsidiaries, operates in the airline industry. The Company has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, Philadelphia, Phoenix and Washington, D.C.

Results
Reported Earnings
$1.92
Earnings Whisper
$1.75
Consensus Estimate
$1.87
Reported Revenue
$11.11 Bil
Revenue Estimate
$11.05 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

American Airlines Group Reports Second-Quarter Profit

American Airlines Group Inc. (AAL) today reported its second-quarter 2017 results, including these highlights:

Recorded a second-quarter 2017 pre-tax profit of $1.3 billion, or $1.5 billion excluding net special items, and net profit of $803 million, or $944 million excluding net special items

Reported second-quarter earnings of $1.63 per diluted share. Diluted earnings per share excluding net special items were $1.92, up 8.5 percent versus 2016

Reported a 7.2 percent increase in total revenue, to $11.1 billion, and a 5.7 percent increase in total revenue per available seat mile (TRASM)

Returned $500 million to stockholders in the second quarter through the repurchase of 10.0 million shares for $450 million and dividends of $50 million

"We are making important long-term investments in our product and our team at American Airlines. Our strong revenue growth is a credit to our more than 120,000 team members and evidence that these investments are working," said Doug Parker, Chairman and CEO. "Looking forward, we are enthusiastic about our prospects for the second half of 2017, as well as 2018 and beyond."

GAAP
Non-GAAP
2Q17
2Q16
2Q17
2Q16
Total operating revenues ($ mil) $ 11,105
$ 10,363
$ 11,105
$ 10,363
Total operating expenses ($ mil)
9,570
8,612
9,367
8,547
Operating income ($ mil)
1,535
1,751
1,738
1,816
Pre-tax income ($ mil)
1,291
1,493
1,496
1,594
Pre-tax margin
11.6
%
14.4
%
13.5
%
15.4
%
Net income ($ mil)
803
950
944
1,001
Earnings per diluted share
$ 1.63
$ 1.68
$ 1.92
$ 1.77

Revenue and Expenses

Strong passenger demand and improving yields drove a 7.2 percent year-over-year increase in total revenue, to $11.1 billion. Notable areas of passenger yield strength were in the Domestic, Central American and South American, and Caribbean regions. Cargo revenue was up 13.1 percent to $196 million due to a 15.1 percent increase in cargo ton miles. Other revenue was up 11.1 percent to $1.3 billion primarily due to the new co-branded credit card agreements that became effective in the third quarter of 2016. Second-quarter TRASM increased by 5.7 percent, on a 1.4 percent increase in total available seat miles.

Total second-quarter operating expenses were $9.6 billion, up 11.1 percent year-over-year due primarily to a 15.4 percent increase in consolidated fuel expense and a 12.5 percent increase in salaries and benefits resulting from the company’s recent investments in its team members. Total second-quarter cost per available seat mile (CASM) was 13.34 cents, up 9.6 percent. Excluding fuel and special items, total CASM was 10.49 cents, up 6.8 percent.

Commercial Initiatives

American has now expanded Basic Economy into 78 markets, including into Canada. Early results continue to be in-line with initial expectations, with approximately half of American Airlines customers buying up to Main Cabin when given the option between that and Basic Economy. The company expects to roll out Basic Economy across the rest of its domestic network by the end of September.

With an average premium of more than $400, customer adoption of the company’s new Premium Economy product has been strong. These seats are now being installed on American’s Boeing 777-200 aircraft. The company expects to retrofit most of its other widebody aircraft with this highly-differentiated seating choice for international customers by the end of 2018.

As part of its $200 million investment in the luxury travel experience, American debuted its Flagship First Dining experience and newly-renovated Flagship Lounge at New York John F. Kennedy International Airport. In addition, access to Flagship Lounges has been expanded to include Business Class customers traveling on qualifying international and transcontinental flights. Additional Flagship Lounge renovations and Flagship First Dining locations are planned at other hubs.

American Airlines President Robert Isom said, "Our investments in our product and our team are beginning to pay real dividends as we give customers more reasons to fly on American. When combined with new revenue management tools and sales initiatives targeting high yielding corporate customers, we believe our revenue growth potential is strong.

"We expect third-quarter TRASM to increase approximately 0.5 to 2.5 percent year-over-year, which reflects continued improvement in customer demand for corporate and leisure travel. We expect third-quarter pre-tax margin excluding special items to be between 10.0 and 12.0 percent. We also expect our fourth-quarter TRASM growth to exceed the third quarter’s growth rate," Isom said.

Capital Investments, Fleet, and Shareholder Returns

American plans to invest $4.1 billion in new aircraft this year as it continues to renew its fleet. During the quarter, the company invested $1.1 billion in aircraft as it took delivery of 16 mainline aircraft and 4 regional aircraft. These new deliveries will replace aircraft that are expected to leave the fleet. In addition, the company expects to invest $1.6 billion in non-aircraft capital expenditures in 2017 focused on integrating the airline, product enhancements, and operational improvements.

Since mid-2014, the company has returned more than $10.7 billion to stockholders primarily through share repurchases and dividends, and reduced the share count by 35 percent to 487.7 million shares. As of June 30, the company had approximately $1.0 billion remaining of its $2.0 billion share repurchase authority.

The company declared a dividend of $0.10 per share, to be paid on August 28, 2017, to stockholders of record as of August 14, 2017.

Investor Update

For additional financial forecasting detail, please refer to the company’s investor relations update, filed with the Securities and Exchange Commission on Form 8-K. This filing will be available at aa.com/investorrelations.

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 August 28.

Notes

In the second quarter, the company recognized $205 million in net special items before the effect of income taxes, principally consisting of merger integration expenses, fleet restructuring expenses driven by the merger and certain one-time charges to adjust the vacation accruals as a result of the salary increases for our pilots and flight attendants. See the accompanying notes in the Financial Tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information.

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.

Share repurchases under the buyback program 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 the company’s discretion.

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

Certain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), and 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 our plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on our 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, those set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (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 our other filings with the Securities and Exchange Commission. There may be other factors of which we are 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. We do 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. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.

American Airlines Group Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited)
3 Months Ended
Percent
6 Months Ended
Percent
June 30,
June 30,
2017
2016
Change
2017
2016
Change
Operating revenues:
Mainline passenger
$
7,747
$
7,209
7.5
$
14,353
$
13,773
4.2
Regional passenger
1,835
1,786
2.8
3,384
3,309
2.3
Cargo
196
174
13.1
368
336
9.8
Other
1,327
1,194
11.1
2,624
2,380
10.2
Total operating revenues
11,105
10,363
7.2
20,729
19,798
4.7
Operating expenses:
Aircraft fuel and related taxes
1,510
1,314
14.9
2,912
2,343
24.2
Salaries, wages and benefits
3,003
2,670
12.5
5,829
5,322
9.5
Regional expenses:
Fuel
329
279
18.0
648
498
30.0
Other
1,291
1,239
4.3
2,546
2,452
3.8
Maintenance, materials and repairs
495
453
9.4
987
871
13.3
Other rent and landing fees
452
458
(1.2
)
892
879
1.5
Aircraft rent
294
302
(2.8
)
589
609
(3.3
)
Selling expenses
376
334
12.5
694
642
8.0
Depreciation and amortization
418
374
11.5
822
729
12.8
Special items, net
202
62
nm
320
161
99.4
Other
1,200
1,127
6.5
2,354
2,205
6.8
Total operating expenses
9,570
8,612
11.1
18,593
16,711
11.3
Operating income
1,535
1,751
(12.3 )
2,136
3,087
(30.8 )
Nonoperating income (expense):
Interest income
24
16
52.7
45
28
57.7
Interest expense, net
(263
)
(249
)
5.8
(520
)
(488
)
6.6
Other, net
(5
)
(25
)
(80.6 )
(5
)
(17
)
(69.2 )
Total nonoperating expense, net
(244
)
(258
)
(5.5
)
(480
)
(477
)
0.8
Income before income taxes
1,291
1,493
(13.5 )
1,656
2,610
(36.6 )
Income tax provision
488
543
(10.1 )
619
960
(35.6 )
Net income
$
803
$
950
(15.5 )
$
1,037
$
1,650
(37.2 )
Earnings per common share:
Basic
$
1.64
$
1.69
$
2.08
$
2.82
Diluted
$
1.63
$
1.68
$
2.07
$
2.80
Weighted average shares outstanding (in thousands):
Basic
490,818
563,000
497,360
584,622
Diluted
492,965
566,040
500,381
588,764
Note: Percent change may not recalculate due to rounding.
American Airlines Group Inc.
Consolidated Operating Statistics
(Unaudited)
3 Months Ended
6 Months Ended
June 30,
June 30,
2017
2016
Change
2017
2016
Change
Mainline
Revenue passenger miles (millions)
53,177
51,927
2.4
%
98,388
98,147
0.2
%
Available seat miles (ASM) (millions)
63,520
62,670
1.4
%
120,083
120,234
(0.1 )
%
Passenger load factor (percent)
83.7
82.9
0.8
pts
81.9
81.6
0.3
pts
Yield (cents)
14.57
13.88
4.9
%
14.59
14.03
4.0
%
Passenger revenue per ASM (cents)
12.20
11.50
6.0
%
11.95
11.46
4.3
%
Passenger enplanements (thousands)
37,767
37,699
0.2
%
71,522
72,246
(1.0 )
%
Departures (thousands)
278
283
(1.7
) %
541
555
(2.5 )
%
Aircraft at end of period
956
947
1.0
%
956
947
1.0
%
Block hours (thousands)
896
901
(0.5
) %
1,715
1,746
(1.8 )
%
Average stage length (miles)
1,254
1,241
1.0
%
1,228
1,223
0.4
%
Fuel consumption (gallons in millions)
934
931
0.4
%
1,766
1,786
(1.1 )
%
Average aircraft fuel price including related taxes (dollars per gallon) 1.62
1.41
14.5
%
1.65
1.31
25.7
%
Full-time equivalent employees at end of period
106,100
103,100
2.9
%
106,100
103,100
2.9
%
Operating cost per ASM (cents)
12.51
11.32
10.6
%
12.82
11.45
12.0
%
Operating cost per ASM excluding special items (cents)
12.20
11.22
8.7
%
12.56
11.31
11.0
%
Operating cost per ASM excluding special items and fuel (cents)
9.82
9.12
7.6
%
10.13
9.36
8.2
%
Regional (A)
Revenue passenger miles (millions)
6,387
6,409
(0.3
) %
12,160
11,959
1.7
%
Available seat miles (millions)
8,223
8,081
1.7
%
16,000
15,581
2.7
%
Passenger load factor (percent)
77.7
79.3
(1.6
) pts
76.0
76.8
(0.8 )
pts
Yield (cents)
28.74
27.87
3.1
%
27.83
27.67
0.6
%
Passenger revenue per ASM (cents)
22.32
22.10
1.0
%
21.15
21.24
(0.4 )
%
Passenger enplanements (thousands)
14,049
14,252
(1.4
) %
26,654
26,620
0.1
%
Aircraft at end of period
627
600
4.5
%
627
600
4.5
%
Fuel consumption (gallons in millions)
195
191
1.8
%
377
369
2.2
%
Average aircraft fuel price including related taxes (dollars per gallon) 1.69
1.46
15.9
%
1.72
1.35
27.2
%
Full-time equivalent employees at end of period (B)
22,200
20,400
8.8
%
22,200
20,400
8.8
%
Operating cost per ASM (cents)
19.71
18.78
4.9
%
19.96
18.94
5.4
%
Operating cost per ASM excluding special items (cents)
19.69
18.75
5.0
%
19.94
18.88
5.6
%
Operating cost per ASM excluding special items and fuel (cents)
15.69
15.29
2.6
%
15.89
15.68
1.3
%
Total Mainline & Regional
Revenue passenger miles (millions)
59,564
58,336
2.1
%
110,548
110,106
0.4
%
Available seat miles (millions)
71,743
70,751
1.4
%
136,083
135,815
0.2
%
Cargo ton miles (millions)
701
610
15.1
%
1,321
1,153
14.5
%
Passenger load factor (percent)
83.0
82.5
0.5
pts
81.2
81.1
0.1
pts
Yield (cents)
16.09
15.42
4.3
%
16.04
15.51
3.4
%
Passenger revenue per ASM (cents)
13.36
12.71
5.0
%
13.03
12.58
3.6
%
Total revenue per ASM (cents)
15.48
14.65
5.7
%
15.23
14.58
4.5
%
Cargo yield per ton mile (cents)
27.98
28.48
(1.7
) %
27.88
29.09
(4.1 )
%
Passenger enplanements (thousands)
51,816
51,951
(0.3
) %
98,176
98,866
(0.7 )
%
Aircraft at end of period
1,583
1,547
2.3
%
1,583
1,547
2.3
%
Fuel consumption (gallons in millions)
1,129
1,122
0.6
%
2,143
2,155
(0.6 )
%
Average aircraft fuel price including related taxes (dollars per gallon) 1.63
1.42
14.7
%
1.66
1.32
26.0
%
Full-time equivalent employees at end of period (B)
128,300
123,500
3.9
%
128,300
123,500
3.9
%
Operating cost per ASM (cents)
13.34
12.17
9.6
%
13.66
12.30
11.0
%
Operating cost per ASM excluding special items (cents)
13.06
12.08
8.1
%
13.42
12.18
10.2
%
Operating cost per ASM excluding special items and fuel (cents)
10.49
9.83
6.8
%
10.81
10.09
7.1
%
(A) Regional includes wholly owned regional airline subsidiaries and operating results from capacity purchase carriers.
(B) Regional full-time equivalent employees only include our wholly owned regional airline subsidiaries.
Note: Amounts may not recalculate due to rounding.
American Airlines Group Inc.
Consolidated Revenue Statistics by Region
(Unaudited)
3 Months Ended
6 Months Ended
June 30,
June 30,
2017
2016
Change
2017
2016
Change
Domestic - Mainline
Revenue passenger miles (millions)
32,779
33,418
(1.9
) %
62,310
63,808
(2.3 )
%
Available seat miles (ASM) (millions)
38,092
38,701
(1.6
) %
73,897
75,244
(1.8 )
%
Passenger load factor (percent)
86.1
86.3
(0.2
) pts
84.3
84.8
(0.5 )
pts
Yield (cents)
15.55
14.47
7.4
%
15.44
14.59
5.8
%
Passenger revenue per ASM (cents)
13.38
12.49
7.1
%
13.02
12.37
5.2
%
Domestic Consolidated - Mainline and
Total Regional (A)
Revenue passenger miles (millions)
39,166
39,826
(1.7
) %
74,470
75,767
(1.7 )
%
Available seat miles (millions)
46,315
46,782
(1.0
) %
89,897
90,825
(1.0 )
%
Passenger load factor (percent)
84.6
85.1
(0.5
) pts
82.8
83.4
(0.6 )
pts
Yield (cents)
17.70
16.63
6.4
%
17.46
16.65
4.8
%
Passenger revenue per ASM (cents)
14.96
14.15
5.7
%
14.46
13.89
4.1
%
Latin America
Revenue passenger miles (millions)
7,592
7,421
2.3
%
15,082
15,476
(2.5 )
%
Available seat miles (millions)
9,739
9,469
2.9
%
19,513
19,949
(2.2 )
%
Passenger load factor (percent)
78.0
78.4
(0.4
) pts
77.3
77.6
(0.3 )
pts
Yield (cents)
14.64
12.65
15.7
%
14.76
13.24
11.5
%
Passenger revenue per ASM (cents)
11.41
9.91
15.1
%
11.41
10.27
11.1
%
Atlantic
Revenue passenger miles (millions)
8,849
7,879
12.3
%
13,349
12,680
5.3
%
Available seat miles (millions)
10,927
10,677
2.3
%
17,342
17,570
(1.3 )
%
Passenger load factor (percent)
81.0
73.8
7.2
pts
77.0
72.2
4.8
pts
Yield (cents)
13.04
14.34
(9.1
) %
13.20
14.39
(8.3 )
%
Passenger revenue per ASM (cents)
10.56
10.58
(0.2
) %
10.16
10.38
(2.2 )
%
Pacific
Revenue passenger miles (millions)
3,957
3,209
23.3
%
7,647
6,183
23.7
%
Available seat miles (millions)
4,762
3,823
24.6
%
9,331
7,471
24.9
%
Passenger load factor (percent)
83.1
83.9
(0.8
) pts
82.0
82.8
(0.8 )
pts
Yield (cents)
9.75
9.52
2.4
%
9.78
9.60
1.9
%
Passenger revenue per ASM (cents)
8.10
7.99
1.3
%
8.01
7.94
0.9
%
Total International
Revenue passenger miles (millions)
20,398
18,509
10.2
%
36,078
34,339
5.1
%
Available seat miles (millions)
25,428
23,969
6.1
%
46,186
44,990
2.7
%
Passenger load factor (percent)
80.2
77.2
3.0
pts
78.1
76.3
1.8
pts
Yield (cents)
13.00
12.83
1.3
%
13.12
13.01
0.9
%
Passenger revenue per ASM (cents)
10.42
9.90
5.3
%
10.25
9.93
3.3
%
(A) Revenue statistics for all Regional flying are included herein.
Note: Amounts may not recalculate due to rounding.
Reconciliation of GAAP Financial Information to Non-GAAP Financial Information
American Airlines Group Inc. (the "Company") sometimes uses financial measures that are derived from the consolidated financial statements but that are not presented in accordance with GAAP to understand and evaluate its current operating performance and to allow for period-to-period comparisons. The Company believes these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. The Company is providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis.
The tables below present the reconciliations of the following GAAP measures to their non-GAAP measure:
- Pre-Tax Income (GAAP measure) to Pre-Tax Income Excluding Special Items (non-GAAP measure)
- Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Special Items (non-GAAP measure)
- Net Income (GAAP measure) to Net Income Excluding Special Items (non-GAAP measure)
- Basic and Diluted Earnings Per Share (GAAP measure) to Basic and Diluted Earnings Per Share Excluding Special Items (non-GAAP measure)
- Operating Income (GAAP measure) to Operating Income Excluding Special Items (non-GAAP measure)
Management uses these non-GAAP financial measures to evaluate the Company’s current operating performance and to allow for period-to-period comparisons. As special items may vary from period-to-period in nature and amount, the adjustment to exclude special items allows management an additional tool to better understand the Company’s core operating performance.
Additionally, the tables below present the reconciliations of mainline, regional and total operating costs (GAAP measure) to mainline, regional and total operating costs excluding special items and fuel (non-GAAP measure). Management uses mainline, regional and total operating costs excluding special items and fuel to evaluate the Company’s current operating performance and for period-to-period comparisons. The price of fuel, over which the Company has no control, impacts the comparability of period-to-period financial performance. The adjustment to exclude aircraft fuel and special items allows management an additional tool to better understand and analyze the Company’s non-fuel costs and core operating performance.
3 Months Ended
Percent Change
6 Months Ended
Percent Change
June 30,
June 30,
Reconciliation of Pre-Tax Income Excluding Special Items
2017
2016
2017
2016
(in millions)
(in millions)
Pre-tax income as reported
$
1,291
$ 1,493
$
1,656
$ 2,610
Pre-tax special items:
Special items, net (1)
202
62
320
161
Regional operating special items, net
1
3
4
8
Nonoperating special items, net (2)
2
36
7
36
Total pre-tax special items
205
101
331
205
Pre-tax income excluding special items
$
1,496
$ 1,594
-6
%
$
1,987
$ 2,815
-29
%
Calculation of Pre-Tax Margin
Pre-tax income as reported
$
1,291
$ 1,493
$
1,656
$ 2,610
Total operating revenues as reported
$
11,105
$ 10,363
$
20,729
$ 19,798
Pre-tax margin
11.6
%
14.4
%
8.0
%
13.2
%
Calculation of Pre-Tax Margin Excluding Special Items
Pre-tax income excluding special items
$
1,496
$ 1,594
$
1,987
$ 2,815
Total operating revenues as reported
$
11,105
$ 10,363
$
20,729
$ 19,798
Pre-tax margin excluding special items
13.5
%
15.4
%
9.6
%
14.2
%
Reconciliation of Net Income Excluding Special Items
Net income as reported
$
803
$ 950
$
1,037
$ 1,650
Special items:
Total pre-tax special items (1) (2)
205
101
331
205
Net tax effect of special items
(64
)
(50
)
(116
)
(89
)
Net income excluding special items
$
944
$ 1,001
-6
%
$
1,252
$ 1,766
-29
%
Reconciliation of Basic and Diluted Earnings Per Share Excluding
3 Months Ended
6 Months Ended
June 30,
June 30,
Special Items
2017
2016
2017
2016
(in millions, except per share amounts)
(in millions, except per share amounts)
Net income excluding special items
$
944
$ 1,001
$
1,252
$ 1,766
Shares used for computation (in thousands):
Basic
490,818
563,000
497,360
584,622
Diluted
492,965
566,040
500,381
588,764
Earnings per share excluding special items:
Basic
$
1.92
$ 1.78
$
2.52
$ 3.02
Diluted
$
1.92
$ 1.77
$
2.50
$ 3.00
Reconciliation of Operating Income Excluding Special Items
Operating income as reported
$
1,535
$ 1,751
$
2,136
$ 3,087
Special items:
Special items, net (1)
202
62
320
161
Regional operating special items, net
1
3
4
8
Operating income excluding special items
$
1,738
$ 1,816
$
2,460
$ 3,256
Reconciliation of Operating Cost per ASM Excluding Special
3 Months Ended
6 Months Ended
June 30,
June 30,
Items and Fuel - Mainline only
2017
2016
2017
2016
(in millions)
(in millions)
Total operating expenses as reported
$
9,570
$ 8,612
$
18,593
$ 16,711
Less regional expenses as reported:
Fuel
(329
)
(279
)
(648
)
(498
)
Other
(1,291
)
(1,239
)
(2,546
)
(2,452
)
Total mainline operating expenses as reported
7,950
7,094
15,399
13,761
Special items, net (1)
(202
)
(62
)
(320
)
(161
)
Mainline operating expenses, excluding special items
7,748
7,032
15,079
13,600
Aircraft fuel and related taxes
(1,510
)
(1,314
)
(2,912
)
(2,343
)
Mainline operating expenses, excluding special items and fuel
$
6,238
$ 5,718
$
12,167
$ 11,257
(in cents)
(in cents)
American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions)
June 30, 2017
December 31, 2016
(unaudited)
Assets
Current assets
Cash
$
386
$
322
Short-term investments
6,500
6,037
Restricted cash and short-term investments
554
638
Accounts receivable, net
1,543
1,594
Aircraft fuel, spare parts and supplies, net
1,206
1,094
Prepaid expenses and other
827
639
Total current assets
11,016
10,324
Operating property and equipment
Flight equipment
39,329
37,028
Ground property and equipment
7,580
7,116
Equipment purchase deposits
1,212
1,209
Total property and equipment, at cost
48,121
45,353
Less accumulated depreciation and amortization
(15,128 )
(14,194 )
Total property and equipment, net
32,993
31,159
Other assets
Goodwill
4,091
4,091
Intangibles, net
2,224
2,173
Deferred tax asset
905
1,498
Other assets
2,107
2,029
Total other assets
9,327
9,791
Total assets
$
53,336
$
51,274
Liabilities and Stockholders’ Equity
Current liabilities
Current maturities of long-term debt and capital leases
$
2,334
$
1,855
Accounts payable
1,924
1,592
Accrued salaries and wages
1,295
1,516
Air traffic liability
5,222
3,912
Loyalty program liability
3,014
2,789
Other accrued liabilities
2,323
2,208
Total current liabilities
16,112
13,872
Noncurrent liabilities
Long-term debt and capital leases, net of current maturities
22,525
22,489
Pension and postretirement benefits
7,500
7,842
Other liabilities
3,484
3,286
Total noncurrent liabilities
33,509
33,617
Stockholders’ equity
Common stock
5
5
Additional paid-in capital
6,245
7,223
Accumulated other comprehensive loss
(5,112
)
(5,083
)
Retained earnings
2,577
1,640
Total stockholders’ equity
3,715
3,785
Total liabilities and stockholders’ equity
$
53,336
$
51,274
Corporate Communications
817-967-1577
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