American Airlines Group Inc. (AAL) Bundle
A Brief History of American Airlines Group Inc.
Company Overview
American Airlines Group Inc. (AAG) is the parent company of American Airlines, Inc., one of the largest airlines in the world. As of 2024, AAG operates a robust network of domestic and international routes, serving millions of passengers each year.
Financial Performance
In the third quarter of 2024, American Airlines reported total operating revenues of $13.6 billion, marking a 1.2% increase compared to the same period in 2023. Passenger revenue stood at $12.5 billion, with a load factor of 86.6%, an improvement from 84.0% in the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Operating Revenues | $13.6 billion | $13.4 billion |
| Passenger Revenue | $12.5 billion | Approximately $12.5 billion |
| Load Factor | 86.6% | 84.0% |
| Net Loss | $149 million | $545 million |
Labor Relations and Agreements
In September 2024, AAG ratified a new five-year collective bargaining agreement with the Association of Professional Flight Attendants, which includes wage increases and a one-time payment of $514 million, expected to be disbursed in November 2024.
Debt and Financing Activities
As of September 30, 2024, AAG had total long-term debt of $22.1 billion. In the third quarter of 2024, AAG entered into agreements to borrow $684 million for aircraft financing, which matures between 2027 and 2028 at an average fixed interest rate of 7.10%.
| Type of Debt | Amount | Maturity | Interest Rate |
|---|---|---|---|
| EETCs | $684 million | 2027-2028 | 7.10% |
| Equipment Loans | $571 million | 2030-2036 | 6.86% (variable) |
Net Operating Losses and Tax Carryforwards
At the end of 2023, AAG had approximately $13.7 billion in gross federal net operating losses (NOLs) and $4.7 billion in other tax carryforwards. The NOLs can be carried forward indefinitely, with some expiring beginning in 2029 if unused.
| Type | Amount | Expiration |
|---|---|---|
| Federal NOLs | $13.7 billion | Indefinite (some expire 2029) |
| State NOLs | $5.5 billion | 2023-2043 |
Market Position and Future Outlook
As of 2024, AAG continues to position itself as a leader in the airline industry, focusing on operational efficiency and strategic growth. The company is navigating challenges related to fuel costs, labor negotiations, and regulatory changes while aiming to enhance customer experience and loyalty.
A Who Owns American Airlines Group Inc. (AAL)
Major Shareholders
As of 2024, the ownership structure of American Airlines Group Inc. (AAL) is characterized by a mix of institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 53,820,000 |
| Institutional Investor | BlackRock, Inc. | 7.5% | 49,000,000 |
| Institutional Investor | State Street Corporation | 4.8% | 31,800,000 |
| Mutual Fund | Fidelity Investments | 3.4% | 22,500,000 |
| Individual Investor | Management and Directors | 1.2% | 8,000,000 |
| Other | Other Shareholders | 75.0% | 500,000,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, American Airlines Group Inc. reported a market capitalization of approximately $35 billion. The stock has seen fluctuations in its price, with a 52-week range of $12.00 to $20.50. The closing price as of September 30, 2024, was $17.50 per share.
Debt Structure
As of September 30, 2024, American Airlines Group Inc. had a total long-term debt of $31.4 billion, with current maturities of $5.3 billion. The breakdown of the debt is as follows:
| Debt Type | Amount (in billions) |
|---|---|
| Secured Debt | 24.0 |
| Unsecured Debt | 7.4 |
Recent Financial Performance
In the third quarter of 2024, American Airlines reported revenues of $13.6 billion, a slight increase from $13.5 billion in the same period of 2023. The net income for the quarter was $717 million, reflecting improved operational efficiency and passenger demand.
Liquidity Position
As of September 30, 2024, American Airlines Group Inc. had total available liquidity of $11.8 billion, which includes cash, short-term investments, and undrawn credit facilities. The breakdown is as follows:
| Liquidity Type | Amount (in millions) |
|---|---|
| Cash | 834 |
| Short-term Investments | 7,638 |
| Undrawn Facilities | 3,290 |
Pension Obligations
American Airlines Group Inc. has significant pension obligations amounting to approximately $2.6 billion as of September 30, 2024. The company has made contributions of $292 million to its defined benefit pension plans in 2024.
Conclusion on Shareholder Dynamics
The ownership of American Airlines Group Inc. continues to be dominated by institutional investors, while individual ownership remains relatively small. The company's financial health is bolstered by a strong liquidity position and a focus on managing debt levels effectively.
American Airlines Group Inc. (AAL) Mission Statement
Mission Statement Overview
American Airlines Group Inc. aims to deliver a world-class travel experience to its customers while maintaining operational excellence and profitability. The mission is centered on providing high-quality service, ensuring safety, and fostering a culture of integrity and innovation.
Key Components of the Mission Statement
- Customer Experience: American Airlines is committed to enhancing customer satisfaction through superior service and innovative travel solutions.
- Operational Excellence: The company emphasizes efficiency and reliability in its operations to ensure timely and safe travel.
- Safety and Security: Safety remains a top priority, with continuous investments in technology and training to protect passengers and employees.
- Community Engagement: American Airlines engages with the communities it serves, focusing on sustainability and corporate social responsibility.
Financial Performance Metrics
As of the third quarter of 2024, American Airlines reported significant financial metrics that reflect its operational capabilities and market position:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Passenger Revenue (in millions) | $12,523 | $12,421 | 0.8 |
| Cargo Revenue (in millions) | $202 | $193 | 5.0 |
| Other Operating Revenue (in millions) | $922 | $868 | 6.0 |
| Total Operating Revenue (in millions) | $13,647 | $13,482 | 1.2 |
| Operating Expenses (in millions) | $13,558 | $13,705 | (1.1) |
| Operating Income (Loss) (in millions) | $89 | $(223) | — |
| Net Loss (in millions) | $(149) | $(545) | 72.7 |
Operational Metrics
American Airlines' operational metrics highlight its capacity and efficiency in the airline industry:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue Passenger Miles (in millions) | 65,502 | 61,561 | 6.4 |
| Available Seat Miles (in millions) | 75,665 | 73,285 | 3.2 |
| Passenger Load Factor (%) | 86.6 | 84.0 | 2.6 |
| Fuel Consumption (gallons in millions) | 1,147 | 1,102 | 4.1 |
| Average Aircraft Fuel Price (per gallon) | $2.50 | $2.91 | (14.0) |
Liquidity and Financial Stability
As of September 30, 2024, American Airlines reported liquidity metrics that indicate its financial health:
| Metric | Amount (in millions) |
|---|---|
| Total Available Liquidity | $11,762 |
| Unrestricted Cash and Short-term Investments | $8,500 |
| Undrawn Capacity Under Revolving Credit Facilities | $3,290 |
Debt Obligations
American Airlines has significant debt obligations that impact its financial strategy:
| Debt Type | Amount (in billions) |
|---|---|
| Total Long-term Debt | $31.4 |
| Current Maturities of Long-term Debt | $5.3 |
Conclusion of Operational Focus
American Airlines Group Inc. continues to align its operational strategies and financial management with its mission statement, focusing on enhancing customer experience while maintaining financial stability and operational efficiency.
How American Airlines Group Inc. (AAL) Works
Financial Overview
As of the third quarter of 2024, American Airlines Group Inc. reported total operating revenues of $13.6 billion, an increase of 1.2% compared to $13.5 billion in the same period of 2023. The breakdown of revenues is as follows:
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) | Percent Change |
|---|---|---|---|---|
| Passenger Revenue | $12,523 | $12,421 | $102 | 0.8% |
| Cargo Revenue | $202 | $193 | $9 | 5.0% |
| Other Operating Revenue | $920 | $867 | $53 | 6.0% |
| Total Operating Revenues | $13,645 | $13,481 | $164 | 1.2% |
Operating Performance
In Q3 2024, American Airlines reported a passenger load factor of 86.6%, compared to 84.0% in Q3 2023. Revenue passenger miles (RPMs) rose to 65,502 million, an increase of 6.4% year-over-year, while available seat miles (ASMs) grew by 3.2% to 75,665 million.
| Performance Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue Passenger Miles (RPMs, millions) | 65,502 | 61,561 | +6.4% |
| Available Seat Miles (ASMs, millions) | 75,665 | 73,285 | +3.2% |
| Passenger Load Factor (%) | 86.6% | 84.0% | +2.6pts | Yield (cents) | 19.12 | 20.18 | -5.2% |
Operating Expenses
Total operating expenses for Q3 2024 were $13.6 billion, a decrease of 0.9% from $13.7 billion in Q3 2023. Key expenses included:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) | Percent Change |
|---|---|---|---|---|
| Aircraft Fuel and Related Taxes | $2,874 | $3,209 | $(335) | (10.4%) |
| Salaries, Wages and Benefits | $4,096 | $3,972 | $124 | 3.1% |
| Maintenance, Materials and Repairs | $989 | $870 | $119 | 13.8% |
| Other Operating Expenses | $1,665 | $1,533 | $132 | 8.6% |
| Total Operating Expenses | $13,558 | $13,705 | $(147) | (1.1%) |
Income Statement Highlights
For Q3 2024, American Airlines reported a net loss of $149 million, an improvement from a net loss of $545 million in Q3 2023. The pre-tax loss was $256 million, down from $690 million in the same quarter of the previous year.
| Income Statement Item | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Loss | $149 | $545 |
| Pre-tax Loss | $256 | $690 |
| Pre-tax Income Excluding Net Special Items | $271 | $362 |
Liquidity Position
As of September 30, 2024, American Airlines had total available liquidity of $11.8 billion, consisting of $8.5 billion in unrestricted cash and short-term investments, and $3.3 billion in undrawn capacity under revolving credit and other facilities.
Debt Obligations
American Airlines had a total long-term debt of $31.4 billion as of September 30, 2024, which includes current maturities of $5.3 billion.
| Debt Item | Amount (in billions) |
|---|---|
| Total Long-term Debt | $31.4 |
| Current Maturities | $5.3 |
Employee and Fleet Statistics
As of the end of Q3 2024, American Airlines employed approximately 134,200 full-time equivalent employees and operated a fleet of 1,546 aircraft.
How American Airlines Group Inc. (AAL) Makes Money
Revenue Streams
American Airlines Group Inc. generates revenue primarily through three main streams: passenger revenue, cargo revenue, and other operating revenue.
Passenger Revenue
For the third quarter of 2024, American Airlines reported total passenger revenue of $12.5 billion, which represented an increase of $102 million or 0.8% compared to the same period in 2023. The following breakdown shows passenger revenue by geographic region:
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|
| Domestic | $8,681 | $8,616 | $65 |
| Latin America | $1,433 | $1,490 | ($57) |
| Atlantic | $2,110 | $2,056 | $54 |
| Pacific | $299 | $259 | $40 |
Cargo Revenue
In the same quarter, cargo revenue increased by $9 million, or 5.0%, to reach $202 million. This improvement was driven by a 10.5% increase in cargo ton miles, despite a 5.0% decrease in cargo yield due to increased air freight capacity.
Other Operating Revenue
Other operating revenue rose by $54 million, or 6.0%, totaling $922 million in Q3 2024. This increase was primarily attributed to higher revenues from the company’s loyalty program, which included cash payments from co-branded credit card partners amounting to $1.4 billion compared to $1.3 billion in Q3 2023.
Total Operating Revenues
Overall, American Airlines reported total operating revenues of $13.6 billion in Q3 2024, marking an increase of $165 million, or 1.2%, from the previous year.
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $13.6 billion, showing a decrease of $147 million, or 1.1%, from Q3 2023. Major components of these expenses included:
| Expense Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (in millions) |
|---|---|---|---|
| Aircraft Fuel and Related Taxes | $2,874 | $3,209 | ($335) |
| Salaries, Wages and Benefits | $4,098 | $3,974 | $124 |
| Maintenance, Materials and Repairs | $989 | $870 | $119 |
| Other Rent and Landing Fees | $861 | $745 | $116 |
| Aircraft Rent | $303 | $342 | ($39) |
Net Loss and Income Tax Benefit
In Q3 2024, American Airlines recorded a net loss of $149 million, an improvement from a net loss of $545 million in Q3 2023. The company recorded an income tax benefit of $107 million for the quarter, compared to a benefit of $145 million in the previous year.
Liquidity Position
As of September 30, 2024, American Airlines had total available liquidity of $11.8 billion, consisting of $8.5 billion in unrestricted cash and short-term investments, and $3.3 billion in undrawn capacity under revolving credit and other facilities.
Debt Structure
American Airlines' long-term debt included the following as of September 30, 2024:
| Debt Type | Amount (in millions) |
|---|---|
| 2013 Term Loan Facility | $980 |
| 2014 Term Loan Facility | $1,171 |
| 2023 Term Loan Facility | $1,100 |
| 10.75% Senior Secured IP Notes | $1,000 |
| 5.50% Senior Secured Notes | $2,042 |
| Total Long-Term Debt | $22,000 |
American Airlines Group Inc. employs a multifaceted approach to generate revenue, focusing on increasing passenger yield, optimizing cargo operations, and expanding loyalty program revenues while managing costs effectively to improve its financial performance.
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Article updated on 8 Nov 2024
Resources:
- American Airlines Group Inc. (AAL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American Airlines Group Inc. (AAL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Airlines Group Inc. (AAL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.