American Airlines Reports Third-Quarter 2024 Financial Results

المصدر: Nasdaq GlobeNewswire / 24 أكتوبر 2024 07:00:01 America/New_York

FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2024 financial results, including:

Record third-quarter revenue of $13.6 billion.
Third-quarter net loss of $149 million, or ($0.23) per share. Excluding net special items¹, third-quarter net income of $205 million, or $0.30 per diluted share.
Led U.S. network carriers in third-quarter completion factor.
Ended the third quarter with $11.8 billion of total available liquidity.
On track to reduce total debt² from peak levels by $15 billion by year-end 2025.
Full-year adjusted earnings per diluted share³ expected to be between $1.35 and $1.60.

“The American Airlines team continues to focus on running a reliable operation and managing costs across the airline,” said American’s CEO Robert Isom. “We have taken aggressive action to reset our sales and distribution strategy and reengage the business travel community, which we’re confident will improve our revenue performance over time. We have heard great feedback from travel agencies and corporate customers as we work to rebuild the foundation of our commercial strategy and make it easy for customers to do business with American.”

Sales and distribution strategy
American continues to evolve its sales and distribution strategy to address feedback from corporate and agency partners and regain lost share. In the third quarter, the airline renegotiated competitive contracts with a majority of the largest travel agencies and many of its top corporate customers, reintroduced Corporate Experience benefits for corporate travelers, and increased support for corporate and agency customers by adding sales account managers and sales support staff.

Operational performance
The American Airlines team demonstrated its continued resilience in the third quarter by quickly recovering from several irregular operations events, most notably the CrowdStrike outage and Hurricanes Debby and Helene. Despite the impact of these events, the American team delivered strong operational results in the third quarter, including the highest completion factor among U.S. network carriers and delivering the airline’s highest third-quarter load factor since the merger of American and US Airways in 2013.

Financial performance
American delivered earnings results ahead of prior guidance. The company produced record third-quarter revenue of $13.6 billion, an increase of 1.2% year over year. On a GAAP basis, the company produced an operating margin of 0.7% in the quarter. Excluding the impact of net special items¹, the company produced an adjusted operating margin of 4.7% in the quarter.

Balance sheet and liquidity
American continued to strengthen its balance sheet in the third quarter by reducing total debt² by approximately $360 million. The company is more than $13 billion toward its goal of reducing total debt² by $15 billion by the end of 2025. The company ended the quarter with approximately $11.8 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving credit and other facilities.

Guidance and investor update
Based on present demand trends, the current fuel price forecast and excluding the impact of special items, the company expects its fourth-quarter 2024 adjusted earnings per diluted share³ to be between $0.25 and $0.50. The company now expects its full-year 2024 adjusted earnings per diluted share³ to be between $1.35 and $1.60.

For additional financial forecasting detail, please refer to the company’s investor update, furnished with this press release with the SEC on Form 8-K. This filing is also 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 through Nov. 24.

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 and the calculation of free cash flow.

The company recognized $354 million of net special items in the third quarter after the effect of taxes, which principally included one-time charges resulting from the ratification of a new collective bargaining agreement with the company’s mainline flight attendants.
All references to total debt include debt, finance and operating lease liabilities and pension obligations.
Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking information to GAAP as the nature or amount of net special items cannot be determined at this time.

About American Airlines Group
As a leading global airline, American Airlines offers thousands of flights per day to more than 350 destinations in more than 60 countries. The airline is a founding member of the oneworld^® alliance, whose members serve more than 900 destinations around the globe. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. Learn more about what’s happening at American by visiting news.aa.com and connect with American @AmericanAir and at Facebook.com/AmericanAirlines. To Care for People on Life’s Journey^®.

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, 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, 2024 (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. 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
		2024			2023		(Decrease)				2024			2023		(Decrease)

Operating revenues:
Passenger	$	12,523		$	12,421		0.8			$	37,184		$	36,502		1.9
Cargo		202			193		5.0				584			613		(4.7	)
Other		922			868		6.0				2,783			2,611		6.5
Total operating revenues		13,647			13,482		1.2				40,551			39,726		2.1

Operating expenses:
Aircraft fuel and related taxes		2,874			3,209		(10.4	)			8,916			9,098		(2.0	)
Salaries, wages and benefits		4,098			3,974		3.1				11,917			10,891		9.4
Regional expenses:
Regional operating expenses		1,184			1,089		8.8				3,495			3,224		8.4
Regional depreciation and amortization		80			79		0.8				238			239		(0.2	)
Maintenance, materials and repairs		989			870		13.8				2,823			2,389		18.2
Other rent and landing fees		861			745		15.5				2,514			2,214		13.5
Aircraft rent		303			342		(11.4	)			945			1,031		(8.3	)
Selling expenses		468			430		8.8				1,331			1,357		(1.9	)
Depreciation and amortization		479			487		(1.5	)			1,424			1,456		(2.2	)
Special items, net		554			949		(41.6	)			625			962		(35.1	)

Operating income (loss)		89			(223	)	nm		⁽¹⁾		1,480			2,378		(37.8	)

Nonoperating income (expense):
Interest income		117			168		(30.3	)			363			456		(20.4	)
Interest expense, net		(480	)		(537	)	(10.7	)			(1,464	)		(1,626	)	(10.0	)
Other income (expense), net		18			(98	)	nm				(20	)		(119	)	(83.0	)
Total nonoperating expense, net		(345	)		(467	)	(26.2	)			(1,121	)		(1,289	)	(13.0	)

Income (loss) before income taxes		(256	)		(690	)	(62.9	)			359			1,089		(67.0	)

Income tax provision (benefit)		(107	)		(145	)	(26.0	)			103			286		(64.0	)

Net income (loss)	$	(149	)	$	(545	)	(72.7	)		$	256		$	803		(68.1	)


Earnings (loss) per common share:
Basic	$	(0.23	)	$	(0.83	)				$	0.39		$	1.23
Diluted	$	(0.23	)	$	(0.83	)				$	0.39		$	1.16

Weighted average shares outstanding (in thousands):
Basic		657,424			654,119						656,745			653,241
Diluted		657,424			654,119						658,775			719,956


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
		2024	2023	(Decrease)				2024	2023	(Decrease)

Revenue passenger miles (millions)		65,502	61,561	6.4		%		188,120	173,595	8.4		%
Available seat miles (ASM) (millions)		75,665	73,285	3.2		%		221,445	207,950	6.5		%
Passenger load factor (percent)		86.6	84.0	2.6		pts		85.0	83.5	1.5		pts
Yield (cents)		19.12	20.18	(5.2	)	%		19.77	21.03	(6.0	)	%
Passenger revenue per ASM (cents)		16.55	16.95	(2.3	)	%		16.79	17.55	(4.3	)	%
Total revenue per ASM (cents)		18.04	18.40	(2.0	)	%		18.31	19.10	(4.1	)	%
Cargo ton miles (millions)		542	490	10.5		%		1,541	1,339	15.1		%
Cargo yield per ton mile (cents)		37.33	39.31	(5.0	)	%		37.92	45.78	(17.2	)	%

Fuel consumption (gallons in millions)		1,147	1,102	4.1		%		3,322	3,107	6.9		%
Average aircraft fuel price including related taxes (dollars per gallon)		2.50	2.91	(14.0	)	%		2.68	2.93	(8.3	)	%

Operating cost per ASM (cents)		17.92	18.70	(4.2	)	%		17.64	17.96	(1.8	)	%
Operating cost per ASM excluding net special items (cents)		17.19	17.40	(1.2	)	%		17.36	17.49	(0.8	)	%
Operating cost per ASM excluding net special items and fuel (cents)		13.39	13.02	2.8		%		13.34	13.12	1.7		%

Passenger enplanements (thousands)		58,645	54,608	7.4		%		170,599	157,125	8.6		%
Departures (thousands):
Mainline		304	296	2.8		%		900	860	4.7		%
Regional		254	223	13.9		%		716	633	13.1		%
Total		558	519	7.6		%		1,616	1,493	8.3		%
Average stage length (miles):
Mainline		1,159	1,166	(0.6	)	%		1,156	1,144	1.1		%
Regional		456	461	(1.1	)	%		459	464	(1.1	)	%
Total		839	864	(2.8	)	%		847	856	(1.0	)	%
Aircraft at end of period:
Mainline		971	950	2.2		%		971	950	2.2		%
Regional ⁽²⁾		575	549	4.7		%		575	549	4.7		%
Total		1,546	1,499	3.1		%		1,546	1,499	3.1		%
Full-time equivalent employees at end of period:
Mainline		104,400	104,300	0.1		%		104,400	104,300	0.1		%
Regional ⁽³⁾		29,800	28,500	4.6		%		29,800	28,500	4.6		%
Total		134,200	132,800	1.1		%		134,200	132,800	1.1		%


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⁾Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are 52 regional aircraft in temporary storage as of September 30, 2024 as follows: 51 Embraer 145 and one Embraer 170.
⁽³⁾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
		2024	2023	(Decrease)				2024	2023	(Decrease)

Domestic ⁽¹⁾
Revenue passenger miles (millions)		43,105	40,255	7.1		%		125,100	115,764	8.1		%
Available seat miles (ASM) (millions)		50,040	48,146	3.9		%		146,755	138,400	6.0		%
Passenger load factor (percent)		86.1	83.6	2.5		pts		85.2	83.6	1.6		pts
Passenger revenue (dollars in millions)		8,681	8,616	0.8		%		26,285	25,848	1.7		%
Yield (cents)		20.14	21.40	(5.9	)	%		21.01	22.33	(5.9	)	%
Passenger revenue per ASM (cents)		17.35	17.90	(3.1	)	%		17.91	18.68	(4.1	)	%

Latin America ⁽²⁾
Revenue passenger miles (millions)		7,906	7,833	0.9		%		26,578	24,767	7.3		%
Available seat miles (millions)		8,872	8,872	-		%		30,484	28,582	6.7		%
Passenger load factor (percent)		89.1	88.3	0.8		pts		87.2	86.7	0.5		pts
Passenger revenue (dollars in millions)		1,433	1,490	(3.8	)	%		4,897	5,045	(2.9	)	%
Yield (cents)		18.13	19.02	(4.7	)	%		18.43	20.37	(9.5	)	%
Passenger revenue per ASM (cents)		16.16	16.80	(3.8	)	%		16.07	17.65	(9.0	)	%

Atlantic
Revenue passenger miles (millions)		12,412	11,764	5.5		%		30,394	28,274	7.5		%
Available seat miles (millions)		14,329	14,262	0.5		%		37,001	35,328	4.7		%
Passenger load factor (percent)		86.6	82.5	4.1		pts		82.1	80.0	2.1		pts
Passenger revenue (dollars in millions)		2,110	2,056	2.6		%		5,122	4,875	5.1		%
Yield (cents)		17.00	17.48	(2.7	)	%		16.85	17.24	(2.3	)	%
Passenger revenue per ASM (cents)		14.73	14.41	2.2		%		13.84	13.80	0.3		%

Pacific
Revenue passenger miles (millions)		2,079	1,709	21.7		%		6,048	4,790	26.3		%
Available seat miles (millions)		2,424	2,005	20.9		%		7,205	5,640	27.7		%
Passenger load factor (percent)		85.8	85.2	0.6		pts		83.9	84.9	(1.0	)	pts
Passenger revenue (dollars in millions)		299	259	15.3		%		880	734	19.9		%
Yield (cents)		14.37	15.16	(5.2	)	%		14.55	15.32	(5.0	)	%
Passenger revenue per ASM (cents)		12.33	12.92	(4.6	)	%		12.21	13.01	(6.1	)	%

Total International
Revenue passenger miles (millions)		22,397	21,306	5.1		%		63,020	57,831	9.0		%
Available seat miles (millions)		25,625	25,139	1.9		%		74,690	69,550	7.4		%
Passenger load factor (percent)		87.4	84.7	2.7		pts		84.4	83.2	1.2		pts
Passenger revenue (dollars in millions)		3,842	3,805	1.0		%		10,899	10,654	2.3		%
Yield (cents)		17.16	17.86	(3.9	)	%		17.29	18.42	(6.1	)	%
Passenger revenue per ASM (cents)		15.00	15.14	(0.9	)	%		14.59	15.32	(4.7	)	%

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 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 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 Excluding Net Special Items (non-GAAP measure) - Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings 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 Excluding Net Special Items	3 Months Ended September 30,						Percent Increase	9 Months Ended September 30,						Percent Increase
			2024			2023		(Decrease)		2024			2023		(Decrease)
		(in millions)							(in millions)

	Operating income (loss) as reported	$	89		$	(223	)		$	1,480		$	2,378
	Operating net special items:
	Mainline operating special items, net ⁽¹⁾		554			949				625			962
	Regional operating special items, net		-			2				-			8
	Operating income excluding net special items	$	643		$	728		(11.7%)	$	2,105		$	3,348		(37.1%)

	Calculation of Operating Margin

	Operating income (loss) as reported	$	89		$	(223	)		$	1,480		$	2,378

	Total operating revenues as reported	$	13,647		$	13,482			$	40,551		$	39,726

	Operating margin		0.7%			(1.7%	)			3.7%			6.0%

	Calculation of Operating Margin Excluding Net Special Items

	Operating income excluding net special items	$	643		$	728			$	2,105		$	3,348

	Total operating revenues as reported	$	13,647		$	13,482			$	40,551		$	39,726

	Operating margin excluding net special items		4.7%			5.4%				5.2%			8.4%

	Reconciliation of Pre-Tax Income Excluding Net Special Items

	Pre-tax income (loss) as reported	$	(256	)	$	(690	)		$	359		$	1,089
	Pre-tax net special items:
	Mainline operating special items, net ⁽¹⁾		554			949				625			962
	Regional operating special items, net		-			2				-			8
	Nonoperating special items, net ⁽²⁾		(27	)		101				30			146
	Total pre-tax net special items		527			1,052				655			1,116

	Pre-tax income excluding net special items	$	271		$	362		(25.2%)	$	1,014		$	2,205		(54.0%)

	Calculation of Pre-Tax Margin

	Pre-tax income (loss) as reported	$	(256	)	$	(690	)		$	359		$	1,089

	Total operating revenues as reported	$	13,647		$	13,482			$	40,551		$	39,726

	Pre-tax margin		(1.9%	)		(5.1%	)			0.9%			2.7%

	Calculation of Pre-Tax Margin Excluding Net Special Items

	Pre-tax income excluding net special items	$	271		$	362			$	1,014		$	2,205

	Total operating revenues as reported	$	13,647		$	13,482			$	40,551		$	39,726

	Pre-tax margin excluding net special items		2.0%			2.7%				2.5%			5.6%


		3 Months Ended September 30,						Percent Increase	9 Months Ended September 30,						Percent Increase
	Reconciliation of Net Income Excluding Net Special Items		2024			2023		(Decrease)		2024			2023		(Decrease)
		(in millions, except share and per share amounts)							(in millions, except share and per share amounts)

	Net income (loss) as reported	$	(149	)	$	(545	)		$	256		$	803
	Net special items:
	Total pre-tax net special items ^{(1), (2)}		527			1,052				655			1,116
	Net tax effect of net special items		(173	)		(244	)			(158	)		(252	)
	Net income excluding net special items	$	205		$	263		(21.9%)	$	753		$	1,667		(54.8%)

	Reconciliation of Basic and Diluted Earnings Per Share Excluding Net Special Items

	Net income excluding net special items	$	205		$	263			$	753		$	1,667

	Shares used for computation (in thousands):
	Basic		657,424			654,119				656,745			653,241
	Diluted		720,086			722,087				720,503			719,956

	Earnings per share excluding net special items:
	Basic	$	0.31		$	0.40			$	1.15		$	2.55
	Diluted ⁽³⁾	$	0.30		$	0.38			$	1.10		$	2.36

	Reconciliation of Total Operating Costs per ASM Excluding Net Special Items and Fuel

	Total operating expenses as reported	$	13,558		$	13,705			$	39,071		$	37,348

	Operating net special items:
	Mainline operating special items, net ⁽¹⁾		(554	)		(949	)			(625	)		(962	)
	Regional operating special items, net		-			(2	)			-			(8	)
	Total operating expenses excluding net special items		13,004			12,754				38,446			36,378

	Aircraft fuel and related taxes		(2,874	)		(3,209	)			(8,916	)		(9,098	)
	Total operating expenses excluding net special items and fuel	$	10,130		$	9,545			$	29,530		$	27,280

		(in cents)							(in cents)

	Total operating expenses per ASM as reported		17.92			18.70				17.64			17.96

	Operating net special items per ASM:
	Mainline operating special items, net ⁽¹⁾		(0.73	)		(1.29	)			(0.28	)		(0.46	)
	Regional operating special items, net		-			-				-			-
	Total operating expenses per ASM excluding net special items		17.19			17.40				17.36			17.49

	Aircraft fuel and related taxes per ASM		(3.80	)		(4.38	)			(4.03	)		(4.38	)
	Total operating expenses per ASM excluding net special items and fuel		13.39			13.02				13.34			13.12

	Note: Amounts may not recalculate due to rounding.

	FOOTNOTES:

⁽¹⁾	The 2024 third quarter mainline operating special items, net principally included $516 million of one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline flight attendants. The 2024 nine month period mainline operating special items, net included $573 million of one-time charges resulting from the ratifications of new collective bargaining agreements with our mainline flight attendants as discussed above and with our mainline passenger service team members.

	The 2023 third quarter and nine month period mainline operating special items, net principally included $983 million of one-time charges resulting from the ratification of a new collective bargaining agreement with our mainline pilots, including a one-time payment of $754 million as well as adjustments to other benefit-related items of $229 million.

⁽²⁾	Principally included charges associated with debt refinancings and extinguishments as well as mark-to-market net unrealized gains and losses associated with certain equity investments.

⁽³⁾	The 2024 third quarter and nine month period diluted earnings per share gives effect to, among other things, the Company's outstanding 6.5% senior convertible notes by (a) adding back to earnings $14 million and $36 million of interest expense, respectively, related to such convertible notes, net of estimated profit sharing and tax effects and (b) including in the diluted shares outstanding, 61.7 million shares issuable in respect to such convertible notes. The 2023 third quarter and nine month period diluted earnings per share gives effect to, among other things, the Company's outstanding 6.5% senior convertible notes by (a) adding back to earnings $11 million and $33 million of interest expense, respectively, related to such convertible notes, net of estimated profit sharing, short-term incentive and tax effects and (b) including in the diluted shares outstanding, 61.7 million shares issuable in respect to such convertible notes.

American Airlines Group Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)(Unaudited)

		9 Months Ended September 30,
		2024			2023

	Net cash provided by operating activities	$	3,585		$	5,154
	Cash flows from investing activities:
	Capital expenditures and aircraft purchase deposits		(1,943	)		(1,753	)
	Proceeds from sale-leaseback transactions and sale of property and equipment		598			219
	Purchases of short-term investments		(6,528	)		(8,323	)
	Sales of short-term investments		5,901			6,857
	Decrease in restricted short-term investments		159			39
	Other investing activities		(21	)		300
	Net cash used in investing activities		(1,834	)		(2,661	)
	Cash flows from financing activities:
	Payments on long-term debt and finance leases		(2,698	)		(4,624	)
	Proceeds from issuance of long-term debt		1,252			2,324
	Other financing activities		(53	)		(92	)
	Net cash used in financing activities		(1,499	)		(2,392	)
	Net increase in cash and restricted cash		252			101
	Cash and restricted cash at beginning of period		681			586
⁽¹⁾	Cash and restricted cash at end of period	$	933		$	687



⁽¹⁾	The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:

	Cash	$	834		$	577
	Restricted cash included in restricted cash and short-term investments		99			110
	Total cash and restricted cash	$	933		$	687

Free Cash Flow

The Company's free cash flow summary is presented in the table below, which is a non-GAAP measure that management believes is useful information to investors and others in evaluating the Company's ability to generate cash from its core operating performance that is available for use to reinvest in the business or to reduce debt. The Company defines free cash flows as net cash provided by operating activities less net cash used in investing activities, adjusted for (1) net purchases of short-term investments and (2) change in restricted cash. We believe that calculating free cash flow as adjusted for these items is more useful for investors because short-term investment activity and restricted cash are not representative of activity core to our operations. This non-GAAP measure 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. Our calculation of free cash flow is not intended, and should not be used, to measure the residual cash flow available for discretionary expenditures because, among other things, it excludes mandatory debt service requirements and certain other non-discretionary expenditures.

		9 Months Ended September 30, 2024
		9 Months Ended September 30, 2024
		(in millions)

	Net cash provided by operating activities	$	3,585
	Adjusted net cash used in investing activities ⁽¹⁾	(1,203		)
	Free cash flow	$	2,382



⁽¹⁾	The following table provides a reconciliation of adjusted net cash used in investing activities for the nine months ended September 30, 2024 (in millions):

	Net cash used in investing activities	$	(1,834	)
	Adjustments:
	Net purchases of short-term investments	627
	Decrease in restricted cash	4
	Adjusted net cash used in investing activities	$	(1,203	)

American Airlines Group Inc.
Condensed Consolidated Balance Sheets
(In millions, except shares)


	September 30, 2024			December 31, 2023
	(unaudited)
Assets

Current assets
Cash	$	834		$	578
Short-term investments		7,638			7,000
Restricted cash and short-term investments		752			910
Accounts receivable, net		1,820			2,026
Aircraft fuel, spare parts and supplies, net		2,582			2,400
Prepaid expenses and other		830			658
Total current assets		14,456			13,572

Operating property and equipment
Flight equipment		43,110			41,794
Ground property and equipment		10,105			10,307
Equipment purchase deposits		1,098			760
Total property and equipment, at cost		54,313			52,861
Less accumulated depreciation and amortization		(23,467	)		(22,097	)
Total property and equipment, net		30,846			30,764

Operating lease right-of-use assets		7,709			7,939

Other assets
Goodwill		4,091			4,091
Intangibles, net		2,046			2,051
Deferred tax asset		2,768			2,888
Other assets		1,612			1,753
Total other assets		10,517			10,783

Total assets	$	63,528		$	63,058

Liabilities and Stockholders’ Equity (Deficit)

Current liabilities
Current maturities of long-term debt and finance leases	$	5,384		$	3,632
Accounts payable		2,623			2,353
Accrued salaries and wages		2,484			2,377
Air traffic liability		7,551			6,200
Loyalty program liability		3,584			3,453
Operating lease liabilities		1,173			1,309
Other accrued liabilities		2,733			2,738
Total current liabilities		25,532			22,062

Noncurrent liabilities
Long-term debt and finance leases, net of current maturities		26,268			29,270
Pension and postretirement benefits		2,568			3,044
Loyalty program liability		6,035			5,874
Operating lease liabilities		6,348			6,452
Other liabilities		1,631			1,558
Total noncurrent liabilities		42,850			46,198

Stockholders' equity (deficit)
Common stock, 657,102,842 shares outstanding at September 30, 2024		7			7
Additional paid-in capital		7,407			7,374
Accumulated other comprehensive loss		(4,835	)		(4,894	)
Retained deficit		(7,433	)		(7,689	)
Total stockholders' deficit		(4,854	)		(5,202	)

Total liabilities and stockholders’ equity (deficit)	$	63,528		$	63,058

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American Airlines Reports Third-Quarter 2024 Financial Results

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