AAL
$14.09
American Airlines Gp
($.41)
(2.83%)
Earnings Details
3rd Quarter September 2022
Thursday, October 20, 2022 7:00:00 AM
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Summary

American Airlines Gp Beats

American Airlines Gp (AAL) reported 3rd Quarter September 2022 earnings of $0.69 per share on revenue of $13.5 billion. The consensus earnings estimate was $0.54 per share on revenue of $13.3 billion. The Earnings Whisper number was $0.56 per share. Revenue grew 50.1% on a year-over-year basis.

The company said it expects fourth quarter earnings of $0.50 to $0.70 per share on revenue of $12.56 billion to $12.78 billion. The current consensus earnings estimate is $0.16 per share on revenue of $12.39 billion for the quarter ending December 31, 2022.

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
$0.69
Earnings Whisper
$0.56
Consensus Estimate
$0.54
Reported Revenue
$13.46 Bil
Revenue Estimate
$13.25 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

American Airlines Reports Third-Quarter 2022 Financial Results

FORT WORTH, Texas, Oct. 20, 2022 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2022 financial results, including:

  • Third-quarter net income of $483 million, or $0.69 per diluted share. Excluding net special items1, third-quarter net income of $478 million, or $0.69 per diluted share.
  • Record quarterly revenue of $13.5 billion, which represents a 13% increase over the same period in 2019, despite flying 9.6% less capacity.
  • Ended the third quarter with $14.3 billion of total available liquidity, more than double the total available liquidity at year-end 2019.
  • Company continues to execute on its plan to pay down approximately $15 billion of total debt2 by the end of 2025.

“The American Airlines team continues to deliver on our goals of running a reliable operation and returning to profitability,” said American’s CEO Robert Isom. “Demand remains strong, and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic. American has the youngest, most fuel-efficient fleet among U.S. network carriers, and we are well-positioned for the future because of the incredible efforts of our team.”

Running a reliable operation
In the third quarter, American flew a schedule that was more than 25% larger than its closest competitor as measured by total departures. American and its regional partners operated more than 500,000 flights in the quarter, with an average load factor of 85.3%, which is 6.6 points higher than the third quarter of 2021. Despite a challenging operating environment — with hurricanes in Florida and the Caribbean and flooding in Dallas-Fort Worth — American restored its operating reliability to pre-pandemic levels in the third quarter. American has delivered a record on-time arrival rate and completion factor so far in October, and expects to carry this momentum through the upcoming holiday season and beyond.

American is proud to offer customers the largest network of any U.S. airline, with an expected average of more than 5,100 daily departures for the remainder of the year.

Returning to profitability
American produced revenues of $13.5 billion in the third quarter, a 13% increase versus 2019 and a record for any quarter in company history. This record revenue was achieved while flying 9.6% less capacity than the same period in 2019. The company produced an operating margin excluding net special items of 7.2% in the quarter.

Demand for domestic and short-haul international travel remains very strong, and the airline expects further improvement in demand for long-haul international travel as travel restrictions and testing requirements are lifted around the globe.

Liquidity and balance sheet
American ended the third quarter with $14.3 billion of total available liquidity, comprising cash and short-term investments plus undrawn capacity under revolving and other credit facilities. Total debt reduction continues to be a top priority, and the company remains on track to reduce total debt levels by $15 billion by the end of 2025.

In the third quarter, the company made approximately $380 million in scheduled debt and finance lease payments. As of Sept. 30, 2022, American had reduced its total debt by $5.6 billion from peak levels in the second quarter of 2021.

Guidance and investor update
American will continue to match its forward capacity with the resources required to support its operation. Based on current trends, the company expects its fourth-quarter total revenue to be 11% to 13% higher versus the fourth quarter of 2019 on 5% to 7% lower capacity. With these demand trends and the current fuel price forecast and excluding the impact of special items, the company expects to produce an operating margin3 of between 5.5% and 7.5% in the fourth quarter. Based on today’s guidance, American expects its fourth-quarter 2022 earnings per diluted share excluding net special items3 to be between $0.50 and $0.70.

For additional financial forecasting detail, please refer to the company’s investor update, filed with this press release with the SEC on Form 8-K. This filing will also be available at aa.com/investorrelations.

Conference call and webcast details
The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CT today. The call 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 Nov. 20.

Notes
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.

  1. The company recognized $18 million of pre-tax net special credits in the third quarter of 2022, which principally included $57 million of nonoperating special credits for mark-to-market net unrealized gains associated with certain equity investments, offset in part by $39 million of operating net special charges.
  2. All references to total debt include debt, finance leases, operating lease liability and pension obligations.
  3. Operating margin and earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking projections to GAAP as the nature or amount of net special items cannot be determined at this time.

About American Airlines Group
To Care for People on Life’s Journey®. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and 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 Exchange Act of 1934, as amended, 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 the company’s plans, objectives, expectations, intentions, estimates and strategies for the future, the continuing availability of borrowings under revolving lines of credit, 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, those set forth herein as well as in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (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 Securities and Exchange Commission. In particular, the consequences of the coronavirus outbreak to economic conditions and the travel industry in general and the financial position and operating results of the company in particular have been material, are changing rapidly, and cannot be predicted. Additionally, 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. 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. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement.


American Airlines Group Inc.
Condensed Consolidated Statements of Operations
(In millions, except share and per share amounts)
(Unaudited)
             
  3 Months Ended
September 30,
 Percent
Increase
 9 Months Ended
September 30,
 Percent
Increase
   2022   2021  (Decrease)  2022   2021  (Decrease)
             
Operating revenues:            
Passenger $12,396  $7,957  55.8  $32,438  $17,682  83.5 
Cargo  279   332  (15.9)  970   973  (0.3)
Other  787   680  15.8   2,375   1,800  31.9 
Total operating revenues  13,462   8,969  50.1   35,783   20,455  74.9 
             
Operating expenses:            
Aircraft fuel and related taxes  3,847   1,952  97.1   10,369   4,596  nm 
Salaries, wages and benefits  3,384   3,018  12.1   9,773   8,611  13.5 
Regional expenses:             
Regional operating expenses  1,093   809  35.1   3,058   1,912  59.9 
Regional depreciation and amortization  81   78  3.7   240   236  1.7 
Maintenance, materials and repairs  685   548  25.1   1,949   1,383  40.9 
Other rent and landing fees  710   694  2.3   2,081   1,950  6.8 
Aircraft rent  347   358  (3.0)  1,045   1,064  (1.8)
Selling expenses  495   318  55.7   1,331   745  78.7 
Depreciation and amortization  491   480  2.1   1,486   1,439  3.2 
Special items, net  37   (990) nm (1) 189   (3,986) nm 
Other  1,362   1,109  22.9   4,037   2,784  45.1 
Total operating expenses  12,532   8,374  49.7   35,558   20,734  71.5 
               
Operating income (loss)  930   595  56.3   225   (279) nm 
               
Nonoperating income (expense):              
Interest income  70   5  nm   107   13  nm 
Interest expense, net  (499)  (476) 4.8   (1,430)  (1,332) 7.4 
Other income, net  157   82  91.1   274   241  14.1 
Total nonoperating expense, net  (272)  (389) (30.0)  (1,049)  (1,078) (2.7)
              
Income (loss) before income taxes  658   206  nm   (824)  (1,357) (39.3)
              
Income tax provision (benefit)  175   37  nm   (148)  (296) (49.7)
              
Net income (loss) $483  $169  nm  $(676) $(1,061) (36.3)
             
             
Earnings (loss) per common share:            
Basic $0.74  $0.26    $(1.04) $(1.65)  
Diluted $0.69  $0.25    $(1.04) $(1.65)  
             
Weighted average shares outstanding (in thousands):            
Basic  650,586   648,564     650,145   642,432   
Diluted  715,985   721,142     650,145   642,432   
             
Note: Percent change may not recalculate due to rounding.
             
(1) Not meaningful or greater than 100% change.
             


American Airlines Group Inc.
Consolidated Operating Statistics (1)
(Unaudited)
                   
  3 Months Ended
September 30,
 Increase  9 Months Ended
September 30,
 Increase 
  2022  2021  (Decrease)  2022  2021  (Decrease) 
                   
Revenue passenger miles (millions) 58,499  48,069  21.7 % 160,305  112,555  42.4 %
Available seat miles (ASM) (millions) 68,567  61,111  12.2 % 194,264  153,431  26.6 %
Passenger load factor (percent) 85.3  78.7  6.6 pts 82.5  73.4  9.1 pts
Yield (cents) 21.19  16.55  28.0 % 20.23  15.71  28.8 %
Passenger revenue per ASM (cents) 18.08  13.02  38.8 % 16.70  11.52  44.9 %
Total revenue per ASM (cents) 19.63  14.68  33.8 % 18.42  13.33  38.2 %
Cargo ton miles (millions) 478  510  (6.2)% 1,514  1,597  (5.2)%
Cargo yield per ton mile (cents) 58.30  65.02  (10.3)% 64.07  60.94  5.1 %
                   
Fuel consumption (gallons in millions) 1,031  941  9.5 % 2,922  2,393  22.1 %
Average aircraft fuel price including related taxes (dollars per gallon) 3.73  2.07  79.9 % 3.55  1.92  84.8 %
                   
Operating cost per ASM (cents) 18.28  13.70  33.4 % 18.30  13.51  35.5 %
Operating cost per ASM excluding net special items (cents) 18.22  15.43  18.1 % 18.21  16.40  11.0 %
Operating cost per ASM excluding net special items and fuel (cents) 12.61  12.24  3.0 % 12.87  13.41  (4.0)%
                   
Passenger enplanements (thousands) 52,564  48,129  9.2 % 148,353  116,384  27.5 %
Departures (thousands):                  
Mainline 273  245  11.6 % 775  618  25.4 %
Regional 228  263  (13.4)% 702  696  0.8 %
Total 501  508  (1.3)% 1,477  1,314  12.4 %
Average stage length (miles):                  
Mainline 1,175  1,171  0.4 % 1,172  1,180  (0.7)%
Regional 476  482  (1.3)% 479  489  (1.9)%
Total 857  814  5.3 % 842  813  3.6 %
Aircraft at end of period:                  
Mainline (2) 908  857  6.0 % 908  857  6.0 %
Regional (3) 553  557  (0.7)% 553  557  (0.7)%
Total 1,461  1,414  3.3 % 1,461  1,414  3.3 %
Full-time equivalent employees at end of period:                  
Mainline 102,200  94,000  8.7 % 102,200  94,000  8.7 %
Regional (4) 27,500  25,800  6.6 % 27,500  25,800  6.6 %
Total 129,700  119,800  8.3 % 129,700  119,800  8.3 %
                   
Note: Amounts may not recalculate due to rounding.
                   
(1) Unless otherwise noted, operating statistics include mainline and regional operations. Regional includes wholly-owned regional airline subsidiaries and operating results from capacity purchase carriers.
(2) Excludes 14 Boeing 737-800 mainline aircraft that are in temporary storage at September 30, 2022.
(3) Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excludes 30 Embraer 145, 13 Bombardier CRJ 700, five Bombardier CRJ 900 and five Embraer 170 regional aircraft that are in temporary storage at September 30, 2022.
(4) Regional full-time equivalent employees only include our wholly-owned regional airline subsidiaries.
                   


American Airlines Group Inc.
Consolidated Revenue Statistics by Region
(Unaudited)
                   
  3 Months Ended
September 30,
 Increase  9 Months Ended
September 30,
 Increase 
  2022  2021  (Decrease)  2022  2021  (Decrease) 
                   
Domestic (1)                  
Revenue passenger miles (millions) 39,226  38,869  0.9 % 111,346  92,277  20.7 %
Available seat miles (ASM) (millions) 45,686  46,505  (1.8)% 131,507  115,494  13.9 %
Passenger load factor (percent) 85.9  83.6  2.3 pts 84.7  79.9  4.8 pts
Passenger revenue (dollars in millions) 8,786  6,547  34.2 % 23,966  14,646  63.6 %
Yield (cents) 22.40  16.84  33.0 % 21.52  15.87  35.6 %
Passenger revenue per ASM (cents) 19.23  14.08  36.6 % 18.22  12.68  43.7 %
                   
Latin America (2)                   
Revenue passenger miles (millions) 8,012  5,759  39.1 % 24,088  15,306  57.4 %
Available seat miles (millions) 9,166  7,733  18.5 % 29,278  24,059  21.7 %
Passenger load factor (percent) 87.4  74.5  12.9 pts 82.3  63.6  18.7 pts
Passenger revenue (dollars in millions) 1,596  957  66.8 % 4,357  2,375  83.5 %
Yield (cents) 19.92  16.62  19.9 % 18.09  15.52  16.6 %
Passenger revenue per ASM (cents) 17.41  12.38  40.7 % 14.88  9.87  50.8 %
                    
Atlantic                   
Revenue passenger miles (millions) 10,623  3,163  nm   23,273  4,302  nm  
Available seat miles (millions) 12,945  6,035  nm   30,955  11,222  nm  
Passenger load factor (percent) 82.1  52.4  29.7 pts 75.2  38.3  36.9 pts
Passenger revenue (dollars in millions) 1,901  408  nm   3,848  555  nm  
Yield (cents) 17.89  12.90  38.7 % 16.53  12.90  28.2 %
Passenger revenue per ASM (cents) 14.68  6.76  nm   12.43  4.94  nm  
                     
Pacific                    
Revenue passenger miles (millions) 638  278  nm   1,598  670  nm  
Available seat miles (millions) 770  838  (8.2)% 2,524  2,656  (5.0)%
Passenger load factor (percent) 82.9  33.1  49.8 pts 63.3  25.2  38.1 pts
Passenger revenue (dollars in millions) 113  45  nm   267  106  nm  
Yield (cents) 17.74  16.35  8.5 % 16.66  15.85  5.1 %
Passenger revenue per ASM (cents) 14.71  5.42  nm   10.55  4.00  nm  
                     
Total International                    
Revenue passenger miles (millions) 19,273  9,200  nm   48,959  20,278  nm  
Available seat miles (millions) 22,881  14,606  56.7 % 62,757  37,937  65.4 %
Passenger load factor (percent) 84.2  63.0  21.2 pts 78.0  53.5  24.5 pts
Passenger revenue (dollars in millions) 3,610  1,410  nm   8,472  3,036  nm  
Yield (cents) 18.73  15.33  22.2 % 17.30  14.97  15.6 %
Passenger revenue per ASM (cents) 15.78  9.66  63.4 % 13.50  8.00  68.7 %
                   
Note: Amounts may not recalculate due to rounding.
                   
(1) Domestic results include Canada, Puerto Rico and U.S. Virgin Islands.
(2) Latin America results include the Caribbean.
                   


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 condensed 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 measures:

- Operating Income (Loss) (GAAP measure) to Operating Income (Loss) Excluding Net Special Items (non-GAAP measure)
- Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure)
- Pre-Tax Income (Loss) (GAAP measure) to Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP measure)
- Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Net Special Items (non-GAAP measure)
- Net Income (Loss) (GAAP measure) to Net Income (Loss) Excluding Net Special Items (non-GAAP measure)
- Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings (Loss) Per Share Excluding Net 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 net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items allows management an additional tool to understand the Company’s core operating performance.

Additionally, the tables below present the reconciliations of total operating costs (GAAP measure) to total operating costs excluding net special items and fuel (non-GAAP measure) and total operating costs per ASM (CASM) to CASM excluding net special items and fuel. Management uses total operating costs excluding net special items and fuel and CASM excluding net 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 fuel and net special items allows management an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance.
              
 Reconciliation of Operating Income (Loss) Excluding Net Special Items 3 Months Ended
September 30,
 Percent
Increase
 9 Months Ended
September 30,
Percent
Increase
   2022   2021  (Decrease)  2022   2021  (Decrease)
   (in millions)   (in millions)  
              
 Operating income (loss) as reported $930  $595    $225  $(279)  
 Operating net special items:            
 Mainline operating special items, net (1)  37   (990)    189   (3,986)  
 Regional operating special items, net (2)  2   (67)    2   (449)  
 Operating income (loss) excluding net special items $969  $(462) nm $416  $(4,714) nm
              
 Calculation of Operating Margin            
              
 Operating income (loss) as reported $930  $595    $225  $(279)  
              
 Total operating revenues as reported $13,462  $8,969    $35,783  $20,455   
              
 Operating margin  6.9%  6.6%    6.0%  (1.4%)  
              
 Calculation of Operating Margin Excluding Net Special Items            
              
 Operating income (loss) excluding net special items $969  $(462)   $416  $(4,714)  
              
 Total operating revenues as reported $13,462  $8,969    $35,783  $20,455   
              
 Operating margin excluding net special items  7.2%  (5.2%)    1.2%  (23.0%)  
              
 Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items            
              
 Pre-tax income (loss) as reported $658  $206    $(824) $(1,357)  
 Pre-tax net special items:            
 Mainline operating special items, net (1)  37   (990)    189   (3,986)  
 Regional operating special items, net (2)  2   (67)    2   (449)  
 Nonoperating special items, net (3)  (57)  18     34   31   
 Total pre-tax net special items  (18)  (1,039)    225   (4,404)  
              
 Pre-tax income (loss) excluding net special items $640  $(833) nm $(599) $(5,761) (89.6%)
              
 Calculation of Pre-Tax Margin            
              
 Pre-tax income (loss) as reported $658  $206    $(824) $(1,357)  
              
 Total operating revenues as reported $13,462  $8,969    $35,783  $20,455   
              
 Pre-tax margin  4.9%  2.3%    (2.3%)  (6.6%)  
              
 Calculation of Pre-Tax Margin Excluding Net Special Items            
              
 Pre-tax income (loss) excluding net special items $640  $(833)   $(599) $(5,761)  
              
 Total operating revenues as reported $13,462  $8,969    $35,783  $20,455   
              
 Pre-tax margin excluding net special items  4.8%  (9.3%)    (1.7%)  (28.2%)  
              
              
 Reconciliation of Net Income (Loss) Excluding Net Special Items 3 Months Ended
September 30,
 Percent
Increase
 9 Months Ended
September 30,
Percent
Increase
   2022   2021  (Decrease)  2022   2021  (Decrease)
   (in millions, except share and per share amounts)   (in millions, except share and per share amounts)  
              
 Net income (loss) as reported $483  $169    $(676) $(1,061)  
 Net special items:            
 Total pre-tax net special items (1), (2), (3)  (18)  (1,039)    225   (4,404)  
 Income tax special items, net  -   -     (9)  -   
 Net tax effect of net special items  13   229     (39)  991   
 Net income (loss) excluding net special items $478  $(641) nm $(499) $(4,474) (88.9%)
              
 Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items            
              
 Net income (loss) excluding net special items $478  $(641)   $(499) $(4,474)  
              
 Shares used for computation (in thousands):            
 Basic  650,586   648,564     650,145   642,432   
 Diluted  715,985   648,564     650,145   642,432   
              
 Earnings (loss) per share excluding net special items:            
 Basic $0.73  $(0.99)   $(0.77) $(6.96)  
 Diluted $0.69  $(0.99)   $(0.77) $(6.96)  
              
 Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel            
              
 Total operating expenses as reported $12,532  $8,374    $35,558  $20,734   
              
 Operating net special items:            
 Mainline operating special items, net (1)  (37)  990     (189)  3,986   
 Regional operating special items, net (2)  (2)  67     (2)  449   
 Total operating expenses excluding net special items  12,493   9,431     35,367   25,169   
              
 Aircraft fuel and related taxes  (3,847)  (1,952)    (10,369)  (4,596)  
 Total operating expenses excluding net special items and fuel $8,646  $7,479    $24,998  $20,573   
              
   (in cents)   (in cents) 
              
 Total operating expenses per ASM as reported  18.28   13.70     18.30   13.51   
              
 Operating net special items per ASM:            
 Mainline operating special items, net (1)  (0.05)  1.62     (0.10)  2.60   
 Regional operating special items, net (2)  -   0.11     -   0.29   
 Total operating expenses per ASM excluding net special items  18.22   15.43     18.21   16.40   
              
 Aircraft fuel and related taxes per ASM  (5.61)  (3.19)    (5.34)  (3.00)  
 Total operating expenses per ASM excluding net special items and fuel  12.61   12.24     12.87   13.41   
              
 Note: Amounts may not recalculate due to rounding.
              
 FOOTNOTES:
              
(1)The 2022 nine month period mainline operating special items, net principally included a non-cash impairment charge to write down the carrying value of the Company's retired Airbus A330 fleet to the estimated fair value due to the market conditions for certain used aircraft. The Company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic. The 2021 third quarter mainline operating special items, net principally included $992 million of Payroll Support Program (PSP) financial assistance. The 2021 nine month period mainline operating special items, net principally included $4.2 billion of PSP financial assistance, offset in part by $168 million of salary and medical costs associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to the Company's operation due to the COVID-19 pandemic.
              
(2)The 2021 third quarter regional operating special items, net principally included $128 million of PSP financial assistance. The 2021 nine month period regional operating special items, net principally included $539 million of PSP financial assistance, offset in part by a $27 million non-cash impairment charge to write down regional aircraft resulting from the retirement of the remaining Embraer 140 fleet earlier than planned.
              
(3)Principally included mark-to-market net unrealized gains and losses associated with certain equity and other investments as well as non-cash charges associated with debt refinancings and extinguishments.
              


American Airlines Group Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)(Unaudited)
     
  9 Months Ended
September 30,
   2022   2021 
     
 Net cash provided by operating activities$2,331  $1,904 
 Cash flows from investing activities:   
 Capital expenditures, net of aircraft purchase deposit returns (1,860)  (25)
 Airport construction projects, net of reimbursements (274)  (110)
 Proceeds from sale-leaseback transactions 46   168 
 Proceeds from sale of property and equipment 37   181 
 Sales of short-term investments 13,412   7,540 
 Purchases of short-term investments (12,113)  (15,159)
 Decrease (increase) in restricted short-term investments 41   (330)
 Purchase of equity investments (205)  - 
 Other investing activities -   14 
 Net cash used in investing activities (916)  (7,721)
 Cash flows from financing activities:   
 Payments on long-term debt and finance leases (2,038)  (6,639)
 Proceeds from issuance of long-term debt 699   12,096 
 Shares withheld for taxes pursuant to employee stock plans (16)  (13)
 Deferred financing costs (2)  (176)
 Proceeds from issuance of equity -   460 
 Other financing activities 10   121 
 Net cash provided by (used in) financing activities (1,347)  5,849 
 Net increase in cash and restricted cash 68   32 
 Cash and restricted cash at beginning of period 408   399 
(1)Cash and restricted cash at end of period$476  $431 
     
________________________   
(1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:
     
 Cash$332  $293 
 Restricted cash included in restricted cash and short-term investments 144   138 
 Total cash and restricted cash$476  $431 
     


American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions, except shares)
 
 September 30, 2022 December 31, 2021
 (unaudited)  
Assets   
    
Current assets   
Cash$332  $273 
Short-term investments 10,900   12,158 
Restricted cash and short-term investments 953   990 
Accounts receivable, net 1,991   1,505 
Aircraft fuel, spare parts and supplies, net 2,215   1,795 
Prepaid expenses and other 986   615 
Total current assets 17,377   17,336 
    
Operating property and equipment   
Flight equipment 39,154   37,856 
Ground property and equipment 9,696   9,335 
Equipment purchase deposits 643   517 
Total property and equipment, at cost 49,493   47,708 
Less accumulated depreciation and amortization (19,506)  (18,171)
Total property and equipment, net 29,987   29,537 
    
Operating lease right-of-use assets 7,549   7,850 
    
Other assets   
Goodwill 4,091   4,091 
Intangibles, net 2,069   1,988 
Deferred tax asset 3,679   3,556 
Other assets 1,900   2,109 
Total other assets 11,739   11,744 
    
Total assets$66,652  $66,467 
    
Liabilities and Stockholders’ Equity (Deficit)   
    
Current liabilities   
Current maturities of long-term debt and finance leases$2,749  $2,489 
Accounts payable 2,117   1,772 
Accrued salaries and wages 1,662   1,489 
Air traffic liability 8,161   6,087 
Loyalty program liability 3,006   2,896 
Operating lease liabilities 1,467   1,507 
Other accrued liabilities 2,808   2,766 
Total current liabilities 21,970   19,006 
    
Noncurrent liabilities   
Long-term debt and finance leases, net of current maturities 34,185   35,571 
Pension and postretirement benefits 4,601   5,053 
Loyalty program liability 6,141   6,239 
Operating lease liabilities 6,281   6,610 
Other liabilities 1,367   1,328 
Total noncurrent liabilities 52,575   54,801 
    
Stockholders' equity (deficit)   
Common stock, 649,863,026 shares outstanding at September 30, 2022 6   6 
Additional paid-in capital 7,277   7,234 
Accumulated other comprehensive loss (5,862)  (5,942)
Retained deficit (9,314)  (8,638)
Total stockholders' deficit (7,893)  (7,340)
    
Total liabilities and stockholders’ equity (deficit)$66,652  $66,467 


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Source: American Airlines, Inc.