Financial Data and Key Metrics Changes - American Airlines Group reported a first quarter GAAP net loss of $473 million, with an adjusted loss of $0.59 per diluted share, excluding special items [30] - First quarter revenue was $12.6 billion, down 0.2% year over year, while unit revenue increased by 0.7% year over year [31] - First quarter unit cost, excluding fuel and net special items, rose by 7.8% year over year [31] - The company ended the first quarter with $10.8 billion in total available liquidity and produced free cash flow of $1.7 billion during the quarter [34] Business Line Data and Key Metrics Changes - Long-haul international passenger RASM increased, with Atlantic passenger RASM up 10.5% year over year and Pacific passenger RASM up 4.9% [15] - Domestic passenger RASM decreased by 0.7% year over year, reflecting a deceleration in US consumer discretionary spending on air travel [16] - Premium revenue increased by 3% year over year, with premium cabin RASM outperforming main cabin RASM by four points in domestic and eight points in international [16][17] - Managed business revenue was up 8% year over year, with specific strength noted in the financial and professional services sectors [19] Market Data and Key Metrics Changes - The company experienced strong demand for international travel from the US, particularly in the Atlantic and Pacific regions [15] - Short-haul Latin passenger RASM increased year over year for the first time in over a year, remaining one of the most profitable regions [15] - The company noted a significant weakness in demand from price-sensitive customers booking through indirect channels, impacting overall domestic performance [58] Company Strategy and Development Direction - The company is focused on enhancing partnerships, growing the Advantage loyalty program, and improving customer experience [13] - American Airlines Group aims to deliver sustainable free cash flow and strengthen its balance sheet while navigating the current economic environment [10][12] - The company is committed to transforming customer experience and has established a new customer experience organization to improve all aspects of the customer journey [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging economic environment impacting demand and has withdrawn its full-year outlook due to uncertainty [9] - Despite the challenges, management expects to deliver a profitable year and produce positive free cash flow if current demand trends continue [10] - The company plans to remain nimble in capacity deployment, adjusting based on demand and competitive conditions [21] Other Important Information - The company completed its fleet renewal with low aircraft CapEx requirements for the remainder of the decade [11] - American Airlines Group has the youngest fleet among US network carriers and is committed to improving customer experience through various initiatives [23][24] Q&A Session Summary Question: Capacity moderation in light of demand weakness - Management indicated that they have set their capacity plan for the summer with a growth expectation of 2% to 4% [47] - They expressed a negative bias towards future capacity adjustments based on demand trends [48] Question: Corporate share recovery and yield expectations - Management confirmed that corporate share recovery is on track and yields are as expected [51] Question: Performance across international entities - Management noted strength in international operations, particularly in Europe and South America, while domestic performance remains strong in premium bookings [54][55] Question: Domestic demand trends - Management acknowledged significant weakness in demand from price-sensitive customers, particularly in the domestic main cabin [58] Question: Corporate share recapture dynamics - Management explained that the weakness in main cabin demand is overshadowing the recovery in corporate share [98] Question: Liquidity and debt management - Management expressed confidence in their liquidity position and plans to reduce total debt to less than $35 billion by year-end 2027 [35][145] Question: Chicago hub strategy - Management emphasized the importance of the Chicago hub and their strategy to rebuild their position there, while also managing capacity in Charlotte [106]

Highlights American Airlines, along with other major U.S. carriers, has withdrawn full-year 2025 guidance due to ongoing macroeconomic challenges, including weakened domestic demand and broader economic headwinds, prompting a flexible approach to capacity and costs. The airline is enhancing customer experience (e.g., launching free high-speed Wi-Fi for loyalty members in 2026) and preparing for both persistent uncertainty and future recovery, while also voicing concerns about potential tariffs on aircr ...

Core Insights - American Airlines (AAL) reported a narrower loss of 59 cents per share for Q1 2025, compared to the Zacks Consensus Estimate of a loss of 69 cents, but wider than a loss of 34 cents per share in the same quarter last year [1] - Operating revenues reached $12.55 billion, slightly exceeding the Zacks Consensus Estimate of $12.52 billion, but reflecting a 0.2% year-over-year decline [1] Revenue Breakdown - Passenger revenues, which constitute 90.8% of total revenues, decreased by 0.6% year-over-year to $11.4 billion, falling short of the estimate of $11.5 billion due to a slowdown in domestic leisure demand [2] - Cargo revenues increased by 1.1% to $189 million, surpassing the estimate of $171.7 million [2] - Other revenues rose by 5% to $971 million, exceeding expectations of $891.6 million [2] Key Metrics - Total revenue per available seat mile increased to 17.95 cents from 17.83 cents year-over-year [3] - Passenger revenue per available seat mile increased by 0.3% to 16.3 cents, but was below the expected 16.5 cents [3] - Consolidated yield increased by 1.4% to 20.21 cents, ahead of the estimate of 19.69 cents [3] Capacity and Traffic - Consolidated traffic decreased by 1.9% year-over-year, while capacity contracted by 0.9% [4] - The consolidated load factor decreased by 0.9 points to 80.6%, which was lower than the expected 83.8% [4] Operating Costs - Total operating costs increased by 2% year-over-year to $12.8 billion, with salaries, wages, and benefits rising by 9.2% to $4.2 billion due to a labor deal with pilots [5] - Aircraft fuel and tax expenses decreased by 13.2% to $2.6 billion, with the average fuel price per gallon dropping to $2.48 from $2.86 a year ago [5] Future Outlook - AAL withdrew its 2025 financial guidance due to tariff-induced uncertainty, with plans to provide an update later in the year [7] - For Q2 2025, AAL expects total revenues to decline by 2% to increase by 1% compared to Q2 2024, with system capacity estimated to rise by 2-4% [9] - The company anticipates an adjusted operating margin of 6-8.5% for Q2 2025, with earnings per share projected between 50 cents and $1 [9]

Labor Market - Initial Jobless Claims for last week were reported at 222K, slightly above estimates but indicating a healthy labor market, with claims remaining between 215K and 225K since March [1] - Continuing Claims decreased to 1.841 million, down from a revised 1.878 million, showing positive trends in long-term jobless claims [2] Durable Goods Orders - Durable Goods Orders for March increased by 9.2%, significantly surpassing the expected 1.6%, marking the best performance since July of the previous year [3] - Excluding transportation, the durable goods orders showed no growth at 0.0%, below the anticipated 0.3% [3] - Non-defense orders excluding aircraft met expectations with a growth of 0.1% [3] Q1 Earnings Reports - PepsiCo (PEP) reported earnings of $1.48 per share, missing consensus by 2 cents, while revenues of $17.92 billion exceeded estimates by 0.94% [4] - Procter & Gamble (PG) met earnings expectations with $1.54 per share but missed revenue expectations at $19.78 billion, down from $20.2 billion a year ago [5] - American Airlines (AAL) reported a loss of $0.59 per share, better than the expected loss of $0.69, but revenues were slightly lower at $12.52 billion [6] - Bristol Myers-Squibb (BMY) exceeded earnings expectations with $1.80 per share and revenues of $11.2 billion, surpassing estimates by 4.3% [7] - Comcast (CMCSA) reported earnings of $1.09 per share, beating expectations, and revenues of $29.89 billion, although still below the previous year's $30.06 billion [8] Market Expectations - Upcoming Existing Home Sales data is anticipated, following a positive surprise in New Home Sales, with expectations set at 4.13 million units, down from 4.26 million in February [9] - A significant number of Q1 earnings reports are expected after market close, including major companies like Alphabet (GOOGL), Intel (INTC), and Freeport-McMoRan (FCX) [10]

e American Airlines Group Inc. FIRST - 2025 HTRANGAL April 24, 2025 2 First-quarter results 1. I he company estimates the impact of the American Eaqle Flight 5342 accident reduced first-quarter revenue by ~S200 million 2. See GAAP to non-GAAP and free cash flow reconciliations at the end of this presentation. First-quarter revenue of $12.6 billion1. ● First-quarter GAAP net loss per diluted share ● of ($0.72). Excluding net special items², first-quarter net ● loss per diluted share of ($0.59). Generated $2. ...

FILE PHOTO: Workers package bottles of Jack Daniel's Single Barrel Select Tennessee Whiskey at the company's distillery in Lynchburg, Tennessee, U.S., on Tuesday, May 18, 2021.U.S. spirit exports reached a record $2.4 billion in 2024, driven in large part by tariff concerns and ongoing global trade disputes.That is according to the American Spirits Exports report published by trade association the Distilled Spirits Council of the United States on Thursday."U.S. spirits exports hit a new high in 2024, recapt ...

Thursday, April 24, 2025Ahead of the opening bell this Thursday morning, Initial Jobless Claims came in at 222K for last week, slightly above estimates but certainly within range that demonstrates a continued healthy labor market. The previous week’s print of 216K was ratcheted up just slightly on revision. Since the first of March, we’ve not seen new claims go higher than 225K nor lower than 215K.Continuing Claims performed even better in today’s release: 1.841 million longer-term jobless claims was nicely ...

American Airlines (AAL) reported $12.55 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 0.2%. EPS of -$0.59 for the same period compares to -$0.34 a year ago. The reported revenue represents a surprise of +0.23% over the Zacks Consensus Estimate of $12.52 billion. With the consensus EPS estimate being -$0.69, the EPS surprise was +14.49%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Group 1 - American Airlines reported a quarterly loss of $0.59 per share, better than the Zacks Consensus Estimate of a loss of $0.69, but worse than a loss of $0.34 per share a year ago, indicating an earnings surprise of 14.49% [1] - The company posted revenues of $12.55 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.23%, although this represents a slight decline from year-ago revenues of $12.57 billion [2] - American Airlines has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has lost approximately 46.5% since the beginning of the year, significantly underperforming the S&P 500, which declined by 8.6% [3] - The company's earnings outlook is uncertain, with current consensus EPS estimates of $0.96 on $14.44 billion in revenues for the coming quarter and $1.35 on $55.26 billion in revenues for the current fiscal year [7] - The Zacks Rank for American Airlines is currently 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Group 3 - The Transportation - Airline industry, to which American Airlines belongs, is currently in the bottom 37% of over 250 Zacks industries, suggesting a challenging environment for the stock [8] - Air Canada, another company in the same industry, is expected to report a quarterly loss of $0.34 per share, reflecting a year-over-year change of -70%, with revenues projected at $3.7 billion, down 4.5% from the previous year [9]

Financial Performance - Total operating revenues for Q1 2025 were $12,551 million, a slight decrease of 0.2% compared to $12,570 million in Q1 2024[19] - Net loss for Q1 2025 was $473 million, compared to a net loss of $312 million in Q1 2024, representing a 51.8% increase in losses year-over-year[20] - Operating expenses increased to $12,821 million in Q1 2025, up 2.1% from $12,563 million in Q1 2024[19] - The company reported a basic and diluted loss per common share of $0.72 for Q1 2025, compared to $0.48 for Q1 2024[19] - The company reported a net periodic benefit income of $24 million for pension benefits in Q1 2025, compared to an income of $36 million in Q1 2024[57] - The company reported an operating loss of $268 million in Q1 2025, compared to an operating income of $13 million in Q1 2024[68] - The net loss for Q1 2025 was $384 million, compared to a net loss of $216 million in Q1 2024[70] - Pre-tax loss for Q1 2025 was $648 million, an increase of $235 million or 56.9% compared to Q1 2024[122] Revenue and Passenger Metrics - Total operating revenues for the three months ended March 31, 2025, were $12,551 million, slightly down from $12,570 million in 2024, with total passenger revenue at $11,391 million compared to $11,458 million in 2024[36] - Total passenger revenue decreased to $11,391 million in Q1 2025 from $11,458 million in Q1 2024, a decline of 0.6%[84] - Passenger revenue decreased by $67 million, or 0.6%, to $11.391 billion in Q1 2025 compared to Q1 2024, impacted by economic uncertainty and a fatal accident[143] - Atlantic passenger revenue per available seat mile (PRASM) increased by 10.5% in Q1 2025 compared to Q1 2024[124] - Pacific PRASM increased by 4.9% in Q1 2025 compared to Q1 2024[124] - Total revenue per available seat mile (TRASM) increased by 0.7% to 17.95 cents in Q1 2025 from 17.83 cents in Q1 2024[126] Cash Flow and Liquidity - Cash and restricted cash at the end of Q1 2025 totaled $931 million, an increase from $703 million at the end of Q1 2024[25] - Net cash provided by operating activities was $2,456 million in Q1 2025, compared to $2,180 million in Q1 2024, reflecting a 12.6% increase[25] - Total available liquidity as of March 31, 2025, was $10.8 billion, consisting of $7.5 billion in unrestricted cash and short-term investments[132] - AAG's net cash provided by operating activities increased to $2.5 billion in Q1 2025 from $2.2 billion in Q1 2024, a 12.5% increase driven by net working capital changes[167] - American's net cash provided by operating activities was $2.3 billion in Q1 2025, up from $2.2 billion in Q1 2024, reflecting a 9% increase[174] Debt and Liabilities - Total stockholders' deficit increased to $4,508 million as of March 31, 2025, compared to $3,977 million at the end of 2024[23] - Long-term debt and finance leases, net of current maturities, decreased to $24,713 million as of March 31, 2025, from $25,154 million at the end of 2024[23] - The total carrying value of long-term debt, including current maturities, was $28.857 billion as of March 31, 2025, with a fair value of $28.538 billion[54] - As of March 31, 2025, American Airlines' total long-term debt was $24,439 million, a decrease from $25,372 million as of December 31, 2024, reflecting a reduction of approximately 3.7%[89] - The company prepaid $144 million of equipment notes and $308 million of senior secured notes in the first quarter of 2025, indicating proactive debt management strategies[93] Operating Expenses - Operating expenses increased to $12,817 million in Q1 2025 from $12,556 million in Q1 2024, primarily driven by higher salaries, wages, and benefits, which rose to $4,220 million from $3,865 million[68] - Salaries, wages, and benefits increased by $355 million or 9.2% in Q1 2025 compared to Q1 2024[121] - Labor contract expenses for the three months ended March 31, 2025, were $31 million, down from $57 million in 2024, reflecting a reduction in severance expenses and adjustments related to vacation accruals[32] - Total operating expenses rose by $258 million, or 2.1%, to $12.821 billion in Q1 2025 from $12.563 billion in Q1 2024[145] Legal and Regulatory Matters - The company is currently engaged in multiple legal proceedings, including antitrust actions related to the Northeast Alliance, which could have material financial impacts[66] Future Outlook and Risks - The company is considering capital raising and liability management activities due to significant financial commitments related to existing debt and new flight equipment[189] - The company does not currently have a foreign currency hedge program, exposing it to fluctuations in foreign exchange rates, particularly with the Euro, Canadian dollar, and British pound sterling[195] - There have been no material changes in the company's risk factors as previously disclosed in its 2024 Form 10-K[203]