American Airlines Group Inc
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
AAL$13.18+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000006201-24-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0000006201-24-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 155 previous paragraphs and 183 current paragraphs.
72 unchanged; 44 reworded; 62 added; 39 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 16 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (62)
Current report
AAG’s Second Quarter 2024 Results
Current report
Pre-tax income on both a GAAP basis and excluding pre-tax net special items was $1.0 billion and $1.8 billion in the second quarters of 2024 and 2023, respectively. Net income was $717 million and $1.3 billion in the second quarters of 2024 and 2023, respectively.
Current report
In July 2024, American and the Association of Professional Flight Attendants (APFA), the union representing our approximately 27,000 mainline flight attendants, reached a new tentative collective bargaining agreement. The tentative agreement is subject to approval by the APFA Board of Directors and is subject to ratification by American’s flight attendants through a vote that is presently expected to close in September 2024. Upon flight attendant ratification, the ratified agreement will include a provision for a one-time payment of approximately $500 million and provisions for other benefit-related items. Since the tentative agreement has not yet been ratified and there is uncertainty about the outcome of that process, we have not accrued for the one-time payment or for the other benefit-related expenses as of June 30, 2024.
Current report
Other operating revenue increased $57 million, or 6.4%, in the second quarter of 2024 from the second quarter of 2023, driven primarily by higher revenue associated with our loyalty program. During the three months ended June 30, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.4 billion and $1.2 billion, respectively.
Current report
Our 2024 second quarter total operating cost per available seat mile (CASM) was 17.21 cents, an increase of 0.8% from 17.07 cents in the second quarter of 2023.
Current report
Our 2024 second quarter CASM excluding net special items and fuel was 13.14 cents, a decrease of 0.1% from 13.16 cents in the second quarter of 2023.
Current report
•amended the 2013, 2014 and 2023 Credit Agreements to reduce the applicable interest rate margins, and terminated all revolving commitments under the April 2016 Credit Agreement, increasing overall available revolving credit capacity from $2.8 billion to $2.9 billion, maturing in June 2029;
Current report
•amended the 2023 Term Loan Facility to reduce the applicable interest rate margin; and
Current report
Passenger revenue increased $224 million, or 1.7%, in the second quarter of 2024 from the second quarter of 2023. In the second quarter of 2024, we experienced a 6.3% decrease in passenger yield on an 8.0% capacity growth year-over-year, as measured by ASMs. Load factor was 86.6% for the second quarter of 2024, compared to 86.2% for the second quarter of 2023. This revenue performance reflected weak industry pricing conditions in light of significantly increased industry capacity, as well as softness in customer bookings due in part to certain commercial initiatives that we deployed, many of which were reversed late in the second quarter of 2024.
Current report
Other operating revenue increased $57 million, or 6.4%, in the second quarter of 2024 from the second quarter of 2023, driven primarily by higher revenue associated with our loyalty program. During the three months ended June 30, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.4 billion and $1.2 billion, respectively.
Current report
Aircraft fuel and related taxes increased $338 million, or 12.4%, in the second quarter of 2024 from the second quarter of 2023 primarily due to an 8.8% increase in gallons of fuel consumed due to increased capacity and a 3.3% increase in the average price per gallon of aircraft fuel including related taxes to $2.70 in the second quarter of 2024 from $2.62 in the second quarter of 2023.
Current report
Salaries, wages and benefits increased $318 million, or 8.7%, in the second quarter of 2024 from the second quarter of 2023 primarily driven by higher wage rates and costs for benefit-related items associated with the ratification of a new collective bargaining agreement with our mainline pilots in August 2023.
Current report
Other rent and landing fees increased $72 million, or 9.5%, in the second quarter of 2024 from the second quarter of 2023 primarily driven by rate increases at certain airports and incremental engine leases.
Current report
Aircraft rent decreased $30 million, or 8.6%, in the second quarter of 2024 from the second quarter of 2023 primarily due to decreased rental payments associated with aircraft operating lease extensions.
Current report
Selling expenses decreased $33 million, or 6.8%, in the second quarter of 2024 from the second quarter of 2023 primarily due to a decrease in commissions expense, offset in part by higher credit card fees driven by the overall increase in passenger revenues.
Current report
Other operating expenses increased $145 million, or 9.7%, in the second quarter of 2024 from the second quarter of 2023 primarily driven by the increase in flight operations, including increased costs for onboard food and catering, crew travel, ground handling and airport lounge operations, as well as certain general and administrative expenses.
Current report
Interest income decreased $34 million, or 21.3%, in the second quarter of 2024 from the second quarter of 2023 primarily due to a decrease in short-term investments subsequent to the second quarter of 2023. Interest expense, net decreased $62 million, or 11.3%, in the second quarter of 2024 from the second quarter of 2023 primarily due to lower outstanding debt subsequent to the second quarter of 2023.
Current report
In the second quarter of 2024, other nonoperating income, net primarily included $24 million of non-service related pension and other postretirement benefit plan income, offset in part by $12 million of net special charges.
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
Passenger revenue increased $580 million, or 2.4%, in the first six months of 2024 from the first six months of 2023. In the first six months of 2024, we experienced a 6.4% decrease in passenger yield on an 8.3% capacity growth year-over-year, as measured by ASMs. Load factor was 84.1% for the first six months of 2024, compared to 83.2% for the first six months of 2023. This revenue performance reflected weak industry pricing conditions in the second quarter of 2024 in light of significantly increased industry capacity, as well as softness in customer bookings due in part to certain commercial initiatives that we deployed, many of which were reversed late in the second quarter of 2024.
Current report
Cargo revenue decreased $38 million, or 9.1%, in the first six months of 2024 from the first six months of 2023 primarily due to a 22.8% decrease in cargo yield driven by increased air freight capacity, offset in part by a 17.7% increase in cargo ton miles.
Current report
Other operating revenue increased $118 million, or 6.8%, in the first six months of 2024 from the first six months of 2023, driven primarily by higher revenue associated with our loyalty program. During the six months ended June 30, 2024 and 2023, cash payments from co-branded credit card and other partners were $3.0 billion and $2.8 billion, respectively.
Current report
Total operating revenues increased $660 million, or 2.5%, in the first six months of 2024 from the first six months of 2023, driven primarily by the increase in passenger revenue as described above. Our TRASM was 18.46 cents in the first six months of 2024, a 5.3% decrease as compared to 19.49 cents in the first six months of 2023. This decrease was driven by a 6.4% decrease in passenger yield primarily due to a softer domestic revenue environment.
Current report
Aircraft fuel and related taxes increased $152 million, or 2.6%, in the first six months of 2024 from the first six months of 2023 primarily due to an 8.4% increase in gallons of fuel consumed due to increased capacity, offset in part by a 5.4% decrease in the average price per gallon of aircraft fuel including related taxes to $2.78 in the first six months of 2024 from $2.94 in the first six months of 2023.
Current report
Salaries, wages and benefits increased $903 million, or 13.1%, in the first six months of 2024 from the first six months of 2023 primarily driven by higher wage rates and costs for benefit-related items associated with the ratification of a new collective bargaining agreement with our mainline pilots in August 2023.
Current report
Maintenance, materials and repairs increased $314 million, or 20.7%, in the first six months of 2024 from the first six months of 2023 primarily due to increased costs for engine overhauls, airframe heavy checks and component part repairs driven by higher volume and flight hours.
Current report
Other rent and landing fees increased $183 million, or 12.5%, in the first six months of 2024 from the first six months of 2023 primarily driven by rate increases at certain airports and incremental engine leases.
Current report
Aircraft rent decreased $46 million, or 6.7%, in the first six months of 2024 from the first six months of 2023 primarily due to decreased rental payments associated with aircraft operating lease extensions.
Current report
Selling expenses decreased $63 million, or 6.8%, in the first six months of 2024 from the first six months of 2023 primarily due to a decrease in commissions expense, offset in part by higher credit card fees driven by the overall increase in passenger revenues.
Current report
Other operating expenses increased $220 million, or 7.5%, in the first six months of 2024 from the first six months of 2023 primarily driven by the increase in flight operations, including increased costs for onboard food and catering, crew travel, ground handling and airport lounge operations, as well as certain general and administrative expenses.
Current report
Interest income decreased $42 million, or 14.7%, in the first six months of 2024 from the first six months of 2023 primarily due to a decrease in short-term investments subsequent to the second quarter of 2023. Interest expense, net decreased $104 million, or 9.7%, in the first six months of 2024 from the first six months of 2023 primarily due to lower outstanding debt subsequent to the second quarter of 2023.
Current report
In the first six months of 2023, other nonoperating expense, net primarily included $45 million of net special charges associated with debt refinancings and extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $16 million of non-service related pension and other postretirement benefit plan income.
Current report
In the first six months of 2024, we recorded an income tax provision of $210 million. Substantially all of our income before income taxes is attributable to the United States.
Current report
Passenger revenue increased $224 million, or 1.7%, in the second quarter of 2024 from the second quarter of 2023. In the second quarter of 2024, American experienced a decrease in passenger yield on higher capacity growth year-over-year, as measured by ASMs. This revenue performance reflected weak industry pricing conditions in light of significantly increased industry capacity, as well as softness in customer bookings due in part to certain commercial initiatives that American deployed, many of which were reversed late in the second quarter of 2024.
Current report
Total operating revenues increased $279 million, or 2.0%, in the second quarter of 2024 from the second quarter of 2023, driven primarily by the increase in passenger revenue as described above.
Current report
Aircraft fuel and related taxes increased $338 million, or 12.4%, in the second quarter of 2024 from the second quarter of 2023 primarily due to an 8.8% increase in gallons of fuel consumed due to increased capacity and a 3.3% increase in the average price per gallon of aircraft fuel including related taxes to $2.70 in the second quarter of 2024 from $2.62 in the second quarter of 2023.
Current report
Salaries, wages and benefits increased $317 million, or 8.7%, in the second quarter of 2024 from the second quarter of 2023 primarily driven by higher wage rates and costs for benefit-related items associated with the ratification of a new collective bargaining agreement with American’s mainline pilots in August 2023.
Current report
Regional expenses increased $110 million, or 9.6%, in the second quarter of 2024 from the second quarter of 2023 primarily due to an increase in regional flight operations at American’s regional carriers.
Current report
Other rent and landing fees increased $72 million, or 9.5%, in the second quarter of 2024 from the second quarter of 2023 primarily driven by rate increases at certain airports and incremental engine leases.
Current report
Aircraft rent decreased $30 million, or 8.6%, in the second quarter of 2024 from the second quarter of 2023 primarily due to decreased rental payments associated with aircraft operating lease extensions.
Showing the first 40 of 62 passages. Open the source sections for the rest.
Removed paragraphs (39)
Previous report
AAG’s First Quarter 2024 Results
Previous report
Pre-Tax Income (Loss) and Net Income (Loss)
Previous report
Cargo revenue decreased $36 million, or 16.0%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a 26.7% decrease in cargo yield driven by increased air freight capacity globally, offset in part by a 14.7% increase in cargo ton miles.
Previous report
Other operating revenue increased $62 million, or 7.2%, in the first quarter of 2024 from the first quarter of 2023, driven primarily by higher revenue associated with our loyalty program. During the three months ended March 31, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.7 billion and $1.6 billion, respectively.
Previous report
Our 2024 first quarter total operating cost per available seat mile (CASM) was 17.82 cents, a decrease of 1.4% from 18.08 cents in the first quarter of 2023. This decrease was primarily driven by a decrease in the average price per gallon of aircraft fuel including related taxes, offset in part by higher salaries, wages and benefits costs associated with the ratification of a new collective bargaining agreement with our mainline pilots in August 2023.
Previous report
Our 2024 first quarter CASM excluding net special items and fuel was 13.49 cents, an increase of 2.3% from 13.18 cents in the first quarter of 2023, which was primarily driven by higher salaries, wages and benefits costs, as described above.
Previous report
Operating Revenues
Previous report
Passenger revenue increased $355 million, or 3.2%, in the first quarter of 2024 from the first quarter of 2023 primarily due to continued strength in demand for air travel, resulting in a 10.5% increase in RPMs and an 81.5% load factor in the first quarter of 2024, offset in part by a 6.6% decrease in passenger yield on 8.5% capacity growth year-over-year, as measured by ASMs.
Previous report
Cargo revenue decreased $36 million, or 16.0%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a 26.7% decrease in cargo yield driven by increased air freight capacity globally, offset in part by a 14.7% increase in cargo ton miles.
Previous report
Other operating revenue increased $62 million, or 7.2%, in the first quarter of 2024 from the first quarter of 2023, driven primarily by higher revenue associated with our loyalty program. During the three months ended March 31, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.7 billion and $1.6 billion, respectively.
Previous report
Operating Expenses
Previous report
Additional detail regarding changes in our operating expenses is as follows:
Previous report
Aircraft fuel and related taxes decreased $187 million, or 5.9%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a 12.8% decrease in the average price per gallon of aircraft fuel including related taxes to $2.86 in the first quarter of 2024 from $3.28 in the first quarter of 2023, offset in part by an 8.0% increase in gallons of fuel consumed due to increased capacity.
Previous report
Salaries, wages and benefits increased $586 million, or 17.8%, in the first quarter of 2024 from the first quarter of 2023 primarily driven by higher wage rates and costs for benefit-related items associated with the ratification of a new collective bargaining agreement with our mainline pilots in August 2023.
Previous report
Other rent and landing fees increased $111 million, or 15.8%, in the first quarter of 2024 from the first quarter of 2023 primarily due to rate increases at certain airports, higher landing fees and incremental engine leases.
Previous report
Selling expenses decreased $30 million, or 6.8%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a decrease in commissions expense, offset primarily by higher credit card fees driven by the overall increase in passenger revenues.
Previous report
Other operating expenses increased $76 million, or 5.2%, in the first quarter of 2024 from the first quarter of 2023 primarily driven by the increase in flight operations, including increased costs for onboard food and catering, ground handling, crew travel and airport lounge operations, as well as certain general and administrative expenses.
Previous report
Nonoperating Results
Previous report
Interest expense, net decreased $43 million, or 8.0%, in the first quarter of 2024 from the first quarter of 2023 primarily due to lower outstanding debt subsequent to the first quarter of 2023.
Previous report
Income Taxes
Previous report
Operating Revenues
Previous report
Passenger revenue increased $355 million, or 3.2%, in the first quarter of 2024 from the first quarter of 2023 primarily due to continued strength in demand for air travel, resulting in an increase in RPMs and an increased load factor in the first quarter of 2024, offset in part by a decrease in passenger yield on higher capacity growth year-over-year, as measured by ASMs.
Previous report
Cargo revenue decreased $36 million, or 16.0%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a decrease in cargo yield driven by increased air freight capacity globally, offset in part by an increase in cargo ton miles.
Previous report
Total operating revenues increased $381 million, or 3.1%, in the first quarter of 2024 from the first quarter of 2023, driven primarily by the increase in passenger revenue as described above.
Previous report
Operating Expenses
Previous report
Additional detail regarding changes in American’s operating expenses is as follows:
Previous report
Aircraft fuel and related taxes decreased $187 million, or 5.9%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a 12.8% decrease in the average price per gallon of aircraft fuel including related taxes to $2.86 in the first quarter of 2024 from $3.28 in the first quarter of 2023, offset in part by an 8.0% increase in gallons of fuel consumed due to increased capacity.
Previous report
Salaries, wages and benefits increased $585 million, or 17.9%, in the first quarter of 2024 from the first quarter of 2023 primarily driven by higher wage rates and costs for benefit-related items associated with the ratification of a new collective bargaining agreement with American’s mainline pilots in August 2023.
Previous report
Other rent and landing fees increased $111 million, or 15.8%, in the first quarter of 2024 from the first quarter of 2023 primarily due to rate increases at certain airports, higher landing fees and incremental engine leases.
Previous report
Selling expenses decreased $30 million, or 6.8%, in the first quarter of 2024 from the first quarter of 2023 primarily due to a decrease in commissions expense, offset primarily by higher credit card fees driven by the overall increase in passenger revenues.
Previous report
Other operating expenses increased $77 million, or 5.2%, in the first quarter of 2024 from the first quarter of 2023 primarily driven by the increase in flight operations, including increased costs for onboard food and catering, ground handling, crew travel and airport lounge operations, as well as certain general and administrative expenses.
Previous report
Nonoperating Results
Previous report
Interest income increased $31 million, or 13.2%, in the first quarter of 2024 from the first quarter of 2023 primarily due to higher returns on related party receivables from AAG. Interest expense, net decreased $30 million, or 5.4%, in the first quarter of 2024 from the first quarter of 2023 primarily due to lower outstanding debt subsequent to the first quarter of 2023.
Previous report
Income Taxes
Previous report
Our net cash provided by operating activities was $2.2 billion and $3.3 billion for the first quarter of 2024 and 2023, respectively, a $1.2 billion period-over-period decrease driven by a net loss in the first quarter of 2024, $280 million in required contributions to our defined benefit pension plans and $261 million related to the payout of our 2023 profit sharing program.
Previous report
American’s net cash provided by operating activities was $2.2 billion and $3.3 billion for the first quarter of 2024 and 2023, respectively, a $1.2 billion period-over-period decrease driven by a net loss in the first quarter of 2024, $280 million in required contributions to American’s defined benefit pension plans and $261 million related to the payout of American’s 2023 profit sharing program.
Previous report
(2)In March 2024, we entered into definitive agreements with Airbus S.A.S. to purchase 85 Airbus A321neo aircraft, with options to purchase up to an additional 75 Airbus A321neo aircraft.
Previous report
(3)In March 2024, we entered into definitive agreements with The Boeing Company to purchase 85 Boeing 737-10 MAX aircraft, with options to purchase up to an additional 75 Boeing 737-10 MAX aircraft. In addition to our order of incremental aircraft, we converted 30 of our existing firm orders for Boeing 737-8 MAX aircraft into firm orders for Boeing 737-10 MAX aircraft.
Previous report
(4)In March 2024, we entered into a definitive agreement with Embraer S.A. for the purchase of 90 Embraer 175 regional aircraft, with purchase rights for an additional 43 Embraer 175 aircraft.
Reworded paragraphs (44)
Previous wording
Pre-tax loss and net loss were $413 million and $312 million, respectively, in the first quarter of 2024. This compares to first quarter of 2023 pre-tax income and net income of $17 million and $10 million, respectively. Excluding the effects of pre-tax net special items, pre-tax loss was $297 million in the first quarter of 2024 and pre-tax income was $45 million in the first quarter of 2023.
Current wording
Pre-Tax Income and Net Income
Previous wording
The period-over-period decrease in our pre-tax income on both a GAAP basis and excluding pre-tax net special items was principally driven by an increase in salaries, wages and benefits as a result of the ratification of a new collective bargaining agreement with our mainline pilots in August 2023, as well as increases in maintenance expenses and other rent and landing fees. These costs were offset in part by higher passenger revenue and lower aircraft fuel expense, discussed further below.
Current wording
The period-over-period decrease in our pre-tax income on both a GAAP basis and excluding pre-tax net special items was principally driven by increases in aircraft fuel expense, salaries, wages and benefits, maintenance expense and other operating expenses. These costs were offset in part by higher passenger revenue.
Previous wording
In May 2023, American and the Allied Pilots Association, the union representing our mainline pilots, reached an agreement in principle on a new collective bargaining agreement, which was ratified in August 2023. This four-year agreement provides wage rate increases, including an initial wage rate increase of 21% effective as of January 1, 2023, quality-of-life benefits and other benefit-related items. The additional compensation for the 2023 period prior to contract ratification as a result of the higher wage rates was recorded within salaries, wages and benefits in the condensed consolidated statements of operations in the second and third quarters of 2023.
Current wording
In May 2023, American and the Allied Pilots Association, the union representing our mainline pilots, reached an agreement in principle on a new collective bargaining agreement, which was ratified in August 2023. This four-year agreement provides wage rate increases, including an initial wage rate increase of 21% effective as of January 1, 2023, quality-of-life benefits and other benefit-related items.
Previous wording
In the first quarter of 2024, we reported total operating revenues of $12.6 billion, an increase of $381 million, or 3.1%, as compared to the first quarter of 2023. Passenger revenue was $11.5 billion, an increase of $355 million, or 3.2%, as compared to the first quarter of 2023. Continued strength in demand for air travel in the first quarter of 2024 resulted in a 10.5% increase in revenue passenger miles (RPMs) and an 81.5% load factor, offset in part by a 6.6% decrease in passenger yield on 8.5% capacity growth year-over-year, as measured by available seat miles (ASMs).
Current wording
In the second quarter of 2024, we reported total operating revenues of $14.3 billion, an increase of $279 million, or 2.0%, as compared to the second quarter of 2023. Passenger revenue was $13.2 billion, an increase of $224 million, or 1.7%, as compared to the second quarter of 2023. In the second quarter of 2024, we experienced a 6.3% decrease in passenger yield on an 8.0% capacity growth year-over-year, as measured by available seat miles (ASMs). Load factor was 86.6% for the second quarter of 2024, compared to 86.2% for the second quarter of 2023. This revenue performance reflected weak industry pricing conditions in light of significantly increased industry capacity, as well as softness in customer bookings due in part to certain commercial initiatives that we deployed, many of which were reversed late in the second quarter of 2024.
Previous wording
Our total revenue per available seat mile (TRASM) was 17.83 cents in the first quarter of 2024, a 4.9% decrease as compared to 18.75 cents in the first quarter of 2023.
Current wording
Our total revenue per available seat mile (TRASM) was 19.05 cents in the second quarter of 2024, a 5.6% decrease as compared to 20.18 cents in the second quarter of 2023. This decrease was driven by a 6.3% decrease in passenger yield primarily due to a softer domestic revenue environment.
Previous wording
Aircraft fuel expense was $3.0 billion in the first quarter of 2024, which was $187 million, or 5.9%, lower as compared to the first quarter of 2023. This decrease was primarily due to a 12.8% decrease in the average price per gallon of aircraft fuel including related taxes to $2.86 in the first quarter of 2024 from $3.28 in the first quarter of 2023, offset in part by an 8.0% increase in gallons of fuel consumed due to increased capacity.
Current wording
Aircraft fuel expense was $3.1 billion in the second quarter of 2024, which was $338 million, or 12.4%, higher as compared to the second quarter of 2023. This was primarily due to an 8.8% increase in gallons of fuel consumed due to increased capacity and a 3.3% increase in the average price per gallon of aircraft fuel including related taxes to $2.70 in the second quarter of 2024 from $2.62 in the second quarter of 2023.
Previous wording
As of March 31, 2024, we had $11.5 billion in total available liquidity, consisting of $8.3 billion in unrestricted cash and short-term investments, and $3.2 billion in total undrawn capacity under revolving credit and other facilities.
Current wording
As of June 30, 2024, we had $11.7 billion in total available liquidity, consisting of $8.4 billion in unrestricted cash and short-term investments, and $3.3 billion in total undrawn capacity under revolving credit and other facilities.
Previous wording
During the first three months of 2024, we completed the following financing transactions (see Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information):
Current wording
During the first six months of 2024, we completed the following financing transactions (see Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for further information):
Previous wording
•entered into a revolving credit facility that provides for borrowing capacity of up to $350 million, maturing in March 2027 with an option to extend for an additional year; and
Current wording
•entered into a revolving credit facility that provides for borrowing capacity of up to $350 million, maturing in March 2027 with an option to extend for an additional year;
Previous wording
•issued $251 million of equipment loans and other notes payable in connection with the financing of certain aircraft.
Current wording
•issued $530 million of equipment loans and other notes payable in connection with the financing of certain aircraft.
Previous wording
The following table presents the reconciliation of pre-tax income (loss) (GAAP measure) to pre-tax income (loss) excluding net special items (non-GAAP measure). Management uses this non-GAAP financial measure to evaluate our 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 our core operating performance.
Current wording
The following table presents the reconciliation of pre-tax income (GAAP measure) to pre-tax income excluding net special items (non-GAAP measure). Management uses this non-GAAP financial measure to evaluate our 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 our core operating performance.
Previous wording
The table below sets forth selected operating data for the three months ended March 31, 2024 and 2023. Amounts may not recalculate due to rounding.
Current wording
The table below sets forth selected operating data for the three and six months ended June 30, 2024 and 2023. Amounts may not recalculate due to rounding.
Previous wording
(h)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 71 regional aircraft in temporary storage as of March 31, 2024 as follows: 57 Embraer 145, ten Bombardier CRJ 700, three Bombardier CRJ 900 and one Embraer 175.
Current wording
(h)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 65 regional aircraft in temporary storage as of June 30, 2024 as follows: 55 Embraer 145, eight Bombardier CRJ 700 and two Embraer 170.
Previous wording
Total operating revenues increased $381 million, or 3.1%, in the first quarter of 2024 from the first quarter of 2023, driven primarily by the increase in passenger revenue as described above. Our TRASM was 17.83 cents in the first quarter of 2024, a 4.9% decrease as compared to 18.75 cents in the first quarter of 2023.
Current wording
Total operating revenues increased $279 million, or 2.0%, in the second quarter of 2024 from the second quarter of 2023, driven primarily by the increase in passenger revenue as described above. Our TRASM was 19.05 cents in the second quarter of 2024, a 5.6% decrease as compared to 20.18 cents in the second quarter of 2023. This decrease was driven by a 6.3% decrease in passenger yield primarily due to a softer domestic revenue environment.
Previous wording
Regional expenses increased $59 million, or 5.1%, in the first quarter of 2024 from the first quarter of 2023 primarily due to an increase in regional flight operations at our wholly-owned regional carriers. An increase in the volume of engine overhauls also contributed to higher costs for maintenance, materials and repairs.
Current wording
Regional expenses increased $115 million, or 10.0%, in the second quarter of 2024 from the second quarter of 2023 primarily due to an increase in regional flight operations at our wholly-owned regional carriers. An increase in the volume of engine overhauls also contributed to higher costs for maintenance, materials and repairs.
Previous wording
Maintenance, materials and repairs increased $172 million, or 24.2%, in the first quarter of 2024 from the first quarter of 2023 primarily due to increased costs for engine overhauls and airframe heavy checks driven by higher volume and flight hours.
Current wording
Maintenance, materials and repairs increased $142 million, or 17.6%, in the second quarter of 2024 from the second quarter of 2023 primarily due to increased costs for engine overhauls, component part repairs and airframe heavy checks driven by higher volume and flight hours.
Previous wording
(2)Not meaningful or greater than 100% change.
Current wording
(1)Not meaningful or greater than 100% change.
Previous wording
In the first quarter of 2023, other nonoperating expense, net primarily included $15 million of net special charges associated with debt refinancings and extinguishments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.
Current wording
In the second quarter of 2023, other nonoperating expense, net primarily included $28 million of net special charges associated with debt extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.
Previous wording
In the first quarter of 2024, we recorded an income tax benefit of $101 million. Substantially all of our income or loss before income taxes is attributable to the United States.
Current wording
In the second quarter of 2024, we recorded an income tax provision of $311 million. Substantially all of our income before income taxes is attributable to the United States.
Previous wording
In the first quarter of 2024, other nonoperating expense, net primarily included a $46 million special charge for mark-to-market net unrealized losses associated with certain equity investments and $7 million of foreign currency losses, offset in part by $24 million of non-service related pension and other postretirement benefit plan income.
Current wording
In the first six months of 2024, other nonoperating expense, net included $58 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $10 million of foreign currency losses, offset in part by $50 million of non-service related pension and other postretirement benefit plan income.
Previous wording
Other operating revenue increased $62 million, or 7.1%, in the first quarter of 2024 from the first quarter of 2023, driven primarily by higher revenue associated with American’s loyalty program. During the three months ended March 31, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.7 billion and $1.6 billion, respectively.
Current wording
Other operating revenue increased $57 million, or 6.4%, in the second quarter of 2024 from the second quarter of 2023, driven primarily by higher revenue associated with American’s loyalty program. During the three months ended June 30, 2024 and 2023, cash payments from co-branded credit card and other partners were $1.4 billion and $1.2 billion, respectively.
Previous wording
Maintenance, materials and repairs increased $172 million, or 24.2%, in the first quarter of 2024 from the first quarter of 2023 primarily due to increased costs for engine overhauls and airframe heavy checks driven by higher volume and flight hours.
Current wording
Maintenance, materials and repairs increased $142 million, or 17.6%, in the second quarter of 2024 from the second quarter of 2023 primarily due to increased costs for engine overhauls, component part repairs and airframe heavy checks driven by higher volume and flight hours.
Previous wording
In the first quarter of 2023, other nonoperating expense, net primarily included $15 million of net special charges associated with debt refinancings and extinguishments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.
Current wording
In the second quarter of 2023, other nonoperating expense, net primarily included $28 million of net special charges associated with debt extinguishments and mark-to-market net unrealized losses associated with certain equity investments, offset in part by $8 million of non-service related pension and other postretirement benefit plan income.
Previous wording
In the first quarter of 2024, American recorded an income tax benefit of $70 million. Substantially all of American’s income or loss before income taxes is attributable to the United States.
Current wording
In the second quarter of 2024, American recorded an income tax provision of $367 million. Substantially all of American’s income before income taxes is attributable to the United States.
Previous wording
In the first quarter of 2024, other nonoperating expense, net primarily included a $46 million special charge for mark-to-market net unrealized losses associated with certain equity investments and $7 million of foreign currency losses, offset in part by $24 million of non-service related pension and other postretirement benefit plan income.
Current wording
In the first six months of 2024, other nonoperating expense, net included $58 million of net special charges primarily for mark-to-market net unrealized losses associated with certain equity investments and $10 million of foreign currency losses, offset in part by $50 million of non-service related pension and other postretirement benefit plan income.
Previous wording
At March 31, 2024, AAG had $11.5 billion in total available liquidity and $895 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions):
Current wording
At June 30, 2024, AAG had $11.7 billion in total available liquidity and $875 million in restricted cash and short-term investments. Additional detail regarding our available liquidity is provided in the table below (in millions):
Previous wording
Our net cash used in investing activities was $1.5 billion and $2.8 billion for the first quarter of 2024 and 2023, respectively.
Current wording
Our net cash used in investing activities was $1.9 billion and $3.7 billion for the first six months of 2024 and 2023, respectively.
Previous wording
Our principal investing activities in the first quarter of 2024 included $824 million of capital expenditures, which primarily related to the purchase of six Embraer 175 aircraft, two Airbus A321neo aircraft, four spare engines and aircraft purchase deposits. Additionally, we had $702 million in net purchases of short-term investments.
Current wording
Our principal investing activities in the first six months of 2024 included $1.5 billion of capital expenditures, which primarily related to the purchase of 12 Embraer 175 aircraft, three Boeing 737 MAX aircraft, two Airbus A321neo aircraft, 32 aircraft engines and aircraft purchase deposits. Additionally, we had $833 million in net purchases of short-term investments. These cash outflows were offset in part by $353 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at Los Angeles International Airport (LAX).
Previous wording
Our principal investing activities in the first quarter of 2023 included $2.5 billion in net purchases of short-term investments. Additionally, we had $505 million of capital expenditures, which primarily related to the purchase of two Airbus A321neo aircraft, two Embraer 175 aircraft and five spare engines.
Current wording
Our principal investing activities in the first six months of 2023 included $2.9 billion in net purchases of short-term investments. Additionally, we had $1.2 billion of capital expenditures, which primarily related to the purchase of seven Boeing 737 MAX aircraft, six Embraer 175 aircraft, two Airbus A321neo aircraft and 13 spare engines.
Previous wording
Our net cash used in financing activities was $642 million and $539 million for the first quarter of 2024 and 2023, respectively.
Current wording
Our net cash used in financing activities was $1.4 billion and $1.2 billion for the first six months of 2024 and 2023, respectively.
Previous wording
Our principal financing activities in the first quarter of 2024 included $873 million in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $248 million borrowed in connection with the financing of certain aircraft.
Current wording
Our principal financing activities in the first six months of 2024 included $1.8 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $527 million borrowed in connection with the financing of certain aircraft.
Previous wording
Our principal financing activities in the first quarter of 2023 included $502 million in net repayments of debt and finance lease obligations. We refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% senior secured notes due 2028.
Current wording
Our principal financing activities in the first six months of 2023 included $1.1 billion in net repayments of debt and finance lease obligations. We refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% Senior Secured Notes.
Previous wording
American’s net cash used in investing activities was $1.5 billion and $2.8 billion for the first quarter of 2024 and 2023, respectively.
Current wording
American’s net cash used in investing activities was $1.9 billion and $3.7 billion for the first six months of 2024 and 2023, respectively.
Previous wording
American’s principal investing activities in the first quarter of 2024 included $815 million of capital expenditures, which primarily related to the purchase of six Embraer 175 aircraft, two Airbus A321neo aircraft, four spare engines and aircraft purchase deposits. Additionally, American had $700 million in net purchases of short-term investments.
Current wording
American’s principal investing activities in the first six months of 2024 included $1.4 billion of capital expenditures, which primarily related to the purchase of 12 Embraer 175 aircraft, three Boeing 737 MAX aircraft, two Airbus A321neo aircraft, 32 aircraft engines and aircraft purchase deposits. Additionally, American had $831 million in net purchases of short-term investments. These cash outflows were offset in part by $353 million of proceeds from sale-leaseback transactions and sale of property and equipment, which primarily related to the modernization of Terminals 4 and 5 at LAX.
Previous wording
American’s principal investing activities in the first quarter of 2023 included $2.5 billion in net purchases of short-term investments. Additionally, American had $494 million of capital expenditures, which primarily related to the purchase of two Airbus A321neo aircraft, two Embraer 175 aircraft and five spare engines.
Current wording
American’s principal investing activities in the first six months of 2023 included $2.9 billion in net purchases of short-term investments. Additionally, American had $1.2 billion of capital expenditures, which primarily related to the purchase of seven Boeing 737 MAX aircraft, six Embraer 175 aircraft, two Airbus A321neo aircraft and 13 spare engines.
Previous wording
American’s net cash used in financing activities was $629 million and $521 million for the first quarter of 2024 and 2023, respectively.
Current wording
American’s net cash used in financing activities was $1.3 billion and $1.1 billion for the first six months of 2024 and 2023, respectively.
Previous wording
American’s principal financing activities in the first quarter of 2024 included $870 million in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $248 million borrowed in connection with the financing of certain aircraft.
Current wording
American’s principal financing activities in the first six months of 2024 included $1.8 billion in scheduled repayments of debt and finance lease obligations. These cash outflows were offset by $527 million borrowed in connection with the financing of certain aircraft.
Previous wording
American’s principal financing activities in the first quarter of 2023 included $500 million in net repayments of debt and finance lease obligations. American refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% senior secured notes due 2028.
Current wording
American’s principal financing activities in the first six months of 2023 included $1.1 billion in net repayments of debt and finance lease obligations. American refinanced approximately $1.8 billion in aggregate principal amount of term loans outstanding under the 2013 Term Loan Facility by extending the maturity of $1.0 billion in term loans under the 2013 Term Loan Facility and issuing $750 million in aggregate principal amount of the 7.25% Senior Secured Notes.
Previous wording
As of March 31, 2024, AAG had $32.2 billion in long-term debt, including current maturities of $4.0 billion. As of March 31, 2024, American had $26.9 billion in long-term debt, including current maturities of $3.5 billion. All material changes in our significant indebtedness since our 2023 Form 10-K are discussed in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A and Note 4 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B.
Current wording
As of June 30, 2024, AAG had $31.5 billion in long-term debt, including current maturities of $4.0 billion. As of June 30, 2024, American had $26.3 billion in long-term debt, including current maturities of $3.5 billion. All material changes in our significant indebtedness since our 2023 Form 10-K are discussed in Note 5 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A and Note 4 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B.
Previous wording
We also have agreements for 66 spare engines to be delivered in the second quarter of 2024 and beyond. In addition, as of March 31, 2024, we have committed to purchase one used Embraer 175 aircraft which is currently flown under a capacity purchase agreement with a third-party regional carrier and is already included in our aircraft count. The“Contractual Obligations” table below reflects these commitments.
Current wording
We also have agreements for 51 spare engines to be delivered in the third quarter of 2024 and beyond. The“Contractual Obligations” table below reflects these commitments.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
This table presents our passenger revenue and the period-over-period change in certain operating statistics:
Current report — wording carried from elsewhere
Regional expenses increased $174 million, or 7.6%, in the first six months of 2024 from the first six months of 2023 primarily due to an increase in regional flight operations at our wholly-owned regional carriers. An increase in the volume of engine overhauls also contributed to higher costs for maintenance, materials and repairs.
Current report — wording carried from elsewhere
See Note 6 to AAG’s Condensed Consolidated Financial Statements in Part I, Item 1A for additional information on income taxes.
Current report — wording carried from elsewhere
American is a member of AAG’s consolidated federal and certain state income tax returns.
Current report — wording carried from elsewhere
See Note 5 to American’s Condensed Consolidated Financial Statements in Part I, Item 1B for additional information on income taxes.