Category Archives: American Airlines

American Airlines reports fourth quarter and full-year 2021 financial results

American Airlines Group Inc. today reported its fourth-quarter and full-year 2021 financial results, including:

  • Fourth-quarter revenue of $9.4 billion, down 17% versus the same period in 2019 on a 13% reduction in total available seat miles (ASMs) versus the same period in 2019.
  • Fourth-quarter net loss of $931 million, or ($1.44) per share. Excluding net special items1, fourth-quarter net loss was $921 million, or ($1.42) per share.
  • Full-year net loss of $2.0 billion, or ($3.09) per share. Excluding net special items2, full-year net loss was $5.4 billion, or ($8.38) per share.
  • Safely transported more than 165 million passengers in 2021, more than any other U.S. carrier.
  • Ended the fourth quarter with $15.8 billion of total available liquidity, the highest year-end liquidity balance in company history.

“As we close out the second year of operating in a global pandemic, we are incredibly proud of the American Airlines team,” said American’s Chairman and CEO Doug Parker. “Over the past year, we have experienced periods of high travel demand countered by periods of decreased demand due to new COVID-19 variants. This volatility has created the most challenging planning environment in the history of commercial aviation. Yet the American team has delivered, growing back faster and further than any other U.S. airline to meet this unpredictable demand. Looking ahead, I’m excited about the future of American with Robert Isom as its new CEO. While we still have work to do as the recovery from the pandemic continues, I have no doubt the best is yet to come for American.”

For the full-year 2021, American achieved its best performance in on-time arrivals, on-time departures and completion factor since the pandemic, despite flying significantly more than any other airline. American’s relative operating performance was particularly strong during the important year-end holiday period. The company’s on-time performance in December was better than any December in years prior to the pandemic, and American performed better than its primary competitors in these operational metrics during the month. These results were achieved despite an increase in sick calls toward the end of the year due to the omicron variant.

“We’re very proud of the way our team delivered throughout 2021,” said American’s President and incoming CEO Robert Isom. “Looking forward, our focus in 2022 will be to continue running a reliable airline, returning to profitability, and delivering on our long-term plan to deleverage the balance sheet.”

American is committed to strengthening its business and achieving profitability by focusing on its three strategic objectives: Create a world-class customer experience, make culture a competitive advantage and build American to thrive forever.

To create a world-class customer experience, American:

  • Expanded its Northeast Alliance (NEA) with JetBlue to provide members of the AAdvantage® and TrueBlue Mosaic loyalty programs with reciprocal elite benefits when traveling on either airline. Customers will experience even more benefits from the NEA this year, including the most flight choices in dozens of markets from New York and Boston, lie-flat seats on all transcontinental routes and a robust international network.
  • Introduced a redesign of the AAdvantage loyalty program, effective in 2022, that removes complicated elite qualifying metrics in favor of an easy-to-understand point system that provides members with multiple ways to earn status. Starting this year, AAdvantage members can earn status by flying, using an AAdvantage credit card for purchases, or spending with an AAdvantage partner.
  • Announced plans to build a new 15,000+-square-foot Admirals Club in Austin, Texas (AUS). The lounge will seat more than 250 customers, making it the largest airport lounge in Austin. Construction will begin this year.
  • Was recognized with the prestigious Five Star rating in The APEX Official Airline Ratings™, Global Airline category, for the fourth consecutive year. The award is based on customer feedback on the overall travel experience.
  • Announced new service between New York’s John F. Kennedy International Airport (JFK) and Doha, Qatar (DOH), which will launch this summer as part of its deepening relationship with Qatar Airways.

To make culture a competitive advantage, American:

  • Celebrated the opening of its Robert L. Crandall Campus in Fort Worth, Texas. Team members from across the system attended with their families and friends and joined a ribbon-cutting ceremony with American’s retired Chairman and CEO Bob Crandall.
  • Welcomed its first flight attendant graduating class since the start of the pandemic. These new flight attendants waited more than 600 days to officially join the airline.
  • Worked to ensure its team members are vaccinated against COVID-19. More than 97% of American’s team members have submitted proof of vaccination or a request for a medical or religious accommodation.

To build American to thrive forever, American:

  • Announced its leadership succession plan in early December. Doug Parker will retire as CEO of American on March 31 and will be succeeded by current President Robert Isom. Isom will join American’s board of directors on the same date, and Parker will continue to serve as chairman of the board. American also announced the senior leadership team that will report to Isom when he becomes CEO.
  • Ended the fourth quarter with $15.8 billion of total available liquidity.
  • Was included in the Dow Jones Sustainability North America Index for the first time, the only passenger airline to be included. The recognition is a testament to the airline’s ongoing commitment to excellence in Environmental, Social and Governance (ESG) matters, including reducing carbon emissions from its operations; advancing diversity, equity and inclusion; and providing regular and transparent ESG disclosures.
  • Finalized a new sustainable aviation fuel (SAF) offtake agreement with Aemetis. The agreement brings the airline’s total SAF commitment to more than 120 million gallons over the next decade, a signal of the integral role SAF will play in American’s efforts to reduce its carbon emissions and achieve its ambitious sustainability goals.
  • Announced that its board of directors has adopted a tax benefit preservation plan to help preserve the value of its net operating losses and other tax attributes. The company estimates that it has $17.2 billion in cumulative U.S. federal net operating loss carryforwards, which are available to reduce future U.S. corporate income tax liabilities.

Guidance and investor update

American will continue to match its forward capacity with observed bookings trends. Based on current trends, the company expects its first-quarter capacity to be down approximately 8% to 10% compared to the first quarter of 2019. American expects its first-quarter total revenue to be down approximately 20% to 22% versus the first quarter of 2019.

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

Conference call and webcast details

The company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CST today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available on the website through at least Feb. 20.

 

Notes

See the accompanying notes in the Financial Tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information.

1The company recognized approximately $9 million of pre-tax net special items in the fourth quarter of 2021, which principally included $29 million of nonoperating special items primarily for mark-to-market net unrealized losses associated with certain equity investments, offset in part by $20 million of mainline operating net special credits.

2The company recognized $4.4 billion of pre-tax net special items in 2021. Mainline operating special items, net principally included $4.2 billion of Payroll Support Program (PSP) financial assistance, offset in part by $168 million of salary and medical costs primarily associated with certain team members who opted into voluntary early retirement programs offered as a result of reductions to the company’s operation due to the COVID-19 pandemic. Regional operating special items, net principally included $539 million of PSP financial assistance, offset in part by a $61 million charge associated with the regional pilot retention program which provides for, among other things, a cash retention bonus paid in the fourth quarter of 2021 to eligible captains at the wholly-owned regional airlines included on the pilot seniority list as of September 1, 2021 and a $27 million non-cash charge to write down regional aircraft resulting from the retirement of the remaining Embraer 140 fleet earlier than planned. The company also recognized $60 million of nonoperating net special items, which principally included mark-to-market net unrealized losses associated with certain equity investments and treasury rate lock derivative instruments as well as non-cash charges associated with debt refinancings and extinguishments.

American Airlines’ COO message to employees

American Airlines’ Chief Operating Officer, David Seymour, issued this statement to its employees, warning of delays:

Meanwhile Verizon and AT&T will limit 5G around airports:

https://www.nbcnews.com/news/us-news/airline-ceos-warn-catastrophic-disruption-5g-rollout-verizon-rcna12525

American Airlines issues a travel alert for Southeast U.S. including the Charlotte hub

American Airlines has issued a travel alert for the following stations and waiving any change fees for the next few days due to a winter storm that could bring icing conditions to the area (including CLT) this weekend.

If you’re traveling to / through / from:

  • Asheville, North Carolina (AVL)
  • Atlanta, Georgia (ATL)
  • Augusta, Georgia (AGS)
  • Birmingham, Alabama (BHM)
  • Charleston, West Virginia (CRW)
  • Charlotte, North Carolina (CLT)
  • Charlottesville, Virginia (CHO)
  • Cincinnati, Ohio (CVG)
  • Columbia, South Carolina (CAE)
  • Columbus, Ohio (CMH)
  • Dayton, Ohio (DAY)
  • Fayetteville, North Carolina (FAY)
  • Florence, South Carolina (FLO)
  • Greensboro / High Point, North Carolina (GSO)
  • Greenville, North Carolina (PGV)
  • Hampton / Newport News, Virginia (PHF)
  • Huntington, West Virginia (HTS)
  • Huntsville, Alabama (HSV)
  • Jackson, Mississippi (JAN)
  • Jacksonville, North Carolina (OAJ)
  • Knoxville, Tennessee (TYS)
  • Lexington, Kentucky (LEX)
  • Little Rock, Arkansas (LIT)
  • Louisville, Kentucky (SDF)
  • Lynchburg, Virginia (LYH)
  • Memphis, Tennessee (MEM)
  • Nashville, Tennessee (BNA)
  • New Bern, North Carolina (EWN)
  • Norfolk, Virginia (ORF)
  • Raleigh / Durham, North Carolina (RDU)
  • Richmond, Virginia (RIC)
  • Roanoke, Virginia (ROA)

Your change fee is waived if you:

  • Are traveling on an American Airlines flight
  • Are booked in any fare class, including Basic Economy
  • Bought your ticket by January 13, 2022
  • Are scheduled to travel January 16 – 17, 2022
  • Can travel January 13 – 20, 2022
  • Don’t change your origin or destination city
  • Rebook in the same cabin or pay the difference
Keep in mind changes must be:
  • Booked by January 17, 2022
  • Completed within 1 year of original ticket date; difference in fare may apply

NWS: 24-hour forecast map:

 

More from the Weather Channel:

https://weather.com/storms/winter/news/2022-01-14-winter-storm-izzy-forecast-snow-ice-midwest-south-northeast

A man was apprehended after damaging a plane during boarding process, American Airlines says

From CNN:

“A man entered the cockpit of an American Airlines plane in Honduras and caused damage while the aircraft was at the gate, the airline said in a statement.
After doing damage, the passenger attempted to jump out of a window, American Airlines spokesperson Sarah Jantz told CNN.
The incident occurred as the flight was boarding for Miami, the airline statement said.”
Read the full story:

American Airlines and Aer Lingus launch new codeshare agreement

American Airlines made this announcement:

Traveling between the United States and Ireland, also known as the Emerald Isle, will be simple, easy and more convenient for customers as American Airlines and Aer Lingus launch their codeshare agreement this week.

To increase connectivity between the U.S and Europe for customers, American will place its code on Aer Lingus flights between London Heathrow (LHR) and Dublin (DUB). Customers can also book codeshare flights on Aer Lingus from DUB to Amsterdam (AMS); Birmingham, UK (BHX); London Gatwick (LGW) and Manchester, UK (MAN); and from LHR to Belfast City, Northern Ireland (BHD); Cork, Ireland (ORK) and Shannon, Ireland (SNN).

Additionally, customers traveling with Aer Lingus will now be able to book codeshare travel on American Airlines flights from Chicago O’Hare (ORD) to Albuquerque, New Mexico, (ABQ); Nashville, Tennessee (BNA); Dallas-Fort Worth (DFW); Los Angeles (LAX); Seattle (SEA); San Francisco (SFO); San Jose, California (SJC) and Tucson, Arizona (TUS).

Further expansion of the codeshare is also planned in the near future.

Aer Lingus joined the Atlantic Joint Business (AJB) between American, British Airways, Iberia and Finnair last year. The AJB has brought significant benefits, such as lower fares and easier journeys to more destinations with better aligned schedules and frequencies, to millions of passengers since its launch in 2010.

 

ALTEXT

 

American Airlines Group Inc. adopts tax benefit preservation plan for net operating losses

American Airlines Group Inc. has announced today that its Board of Directors has adopted a tax benefit preservation plan to help preserve the value of its net operating losses and other tax attributes. The Company estimates that its cumulative U.S. federal net operating loss carryforwards exceed $16.5 billion, which can be utilized in certain circumstances to reduce future U.S. corporate income tax liabilities.

The tax benefit preservation plan was adopted to protect an important asset of American Airlines that may have meaningful value to all American Airlines stockholders. These tax benefits can include the offset of tax liability arising from future taxable earnings or gains. The value of these tax benefits would be substantially limited if American Airlines were to experience an “ownership change” as defined under Section 382 of the Internal Revenue Code. In general, an ownership change would occur if stockholders that own (or are deemed to own) at least 5 percent or more of the outstanding American Airlines common stock increased their cumulative ownership in American Airlines by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. The tax benefit preservation plan reduces the likelihood that changes in the American Airlines investor base would limit future use of its tax benefits, which would significantly impair the value of the benefits to all stockholders. American Airlines believes that no ownership change as defined in Section 382 has occurred as of the date of this press release.

The Board of Directors adopted the tax benefit preservation plan after considering, among other matters, the estimated value of the tax benefits, the potential for diminution upon an ownership change and the risk of an ownership change occurring.

As part of the plan, the American Airlines Board of Directors declared a dividend of one preferred stock purchase right, which are referred to as “rights,” for each outstanding share of American Airlines common stock. The dividend will be payable to holders of record as of the close of business on January 5, 2022. Any shares of American Airlines common stock issued after the record date will be issued together with the rights.

The rights will be exercisable if a person or group, without the approval of the American Airlines Board, acquires, or obtains the right to acquire, beneficial ownership of 4.9 percent or more of American Airlines common stock. The rights also will be exercisable if a person or group that already beneficially owns 4.9 percent or more of the American Airlines common stock, without Board approval, acquires additional shares (other than as a result of a dividend or a stock split). Existing American Airlines stockholders that, as of December 21, 2021, beneficially own in excess of 4.9 percent of the common stock will be “grandfathered in” at their current ownership level. If the rights become exercisable, all holders of rights, other than the person or group triggering the rights, will be entitled to purchase American Airlines common stock at a 50 percent discount. Rights held by the person or group triggering the rights will become void and will not be exercisable.

Beneficial ownership of shares is calculated under the plan in accordance with the applicable rules of Section 382 of the Internal Revenue Code. The calculations are complex, and stockholders should contact American Airlines Investor Relations if they have any questions regarding their ownership.

The Board of Directors has established procedures by which it will consider requests by stockholders to exempt certain acquisitions of American Airlines common stock from the plan if the Board determines that doing so would not limit or impair the availability of the tax benefits or is otherwise in the best interests of American Airlines.

The rights will expire on December 20, 2022, unless American Airlines stockholders approve the plan prior to that date, in which case the rights will expire on December 20, 2024. The rights may also expire on an earlier date upon the occurrence of certain events, including a determination by the Board that the plan is no longer needed to preserve the tax benefits because of legislative changes or if the Board determines that the tax benefits have been fully used or are no longer available under Section 382 or that an ownership change would not materially impair or limit the tax benefits. Once the tax attributes have been fully used, the Board of Directors intends to terminate the plan. The rights may also be redeemed, exchanged or terminated prior to their expiration.

The distribution of the rights is not taxable to stockholders. The rights will initially trade together with American Airlines common stock and the American Airlines Board may terminate the plan or redeem the rights prior to the time the rights are triggered. Further details about the plan will be contained in a Form 8-K to be filed with the Securities and Exchange Commission by American Airlines.

The tax benefit preservation plan is subject to the approval of the NASDAQ Global Select Market.

American Airlines announces daily flights to Dominica

American Airlines has announced that its recently launched and expanded service to Dominica from Miami International Airport will be expanding again to begin daily service effective April 5, 2022.  This service which is scheduled to increase from 2 times weekly at launch to 3 times in January will increase frequency to 7 times weekly in April.

American Airlines operates an Embraer ERJ175 with a capacity for seventy-six (76) passengers with twelve first-class seats and sixty-four premium seats with extra leg room and main cabin seats.

Video:

American Airlines to restart daily flights from Munich to Charlotte

Munich Airport has made this announcement:

Starting tomorrow, the US carrier American Airlines will fly from Munich to Charlotte for the first time since the beginning of the pandemic in March last year.

The long haul Boeing 777-200 aircraft will arrive in Munich daily at 6:55 a.m. and take off again at 10:30 a.m. heading to the United States. Charlotte, in the U.S. state of North Carolina, is one of American Airlines’ largest hubs with numerous onward connections within the United States. With the comeback of American Airlines, all carriers which offered flight connections to North America before the pandemic are back on the start line in Munich.

The number of destinations is back to pre-crisis levels as well. Currently, travelers can reach eleven U.S. destinations and three cities in Canada nonstop from the Bavarian capital.

Behind the Scenes: Building American’s Airbus A321neo aircraft at Mobile, Alabama

American Airlines pulled the curtains back to show the construction of it new Airbus A321neo at Mobile, Alabama:

We recently took delivery of our 50th Airbus aircraft assembled in Mobile, Alabama. To commemorate the occasion, we’ll be sharing a five-part series to give you a behind-the-scenes look at how our A321neos are assembled.

Part 1: By sea, land and air

It’s before sunrise at the Port of Mobile in Mobile, Alabama, on a humid June morning. The Mobile Express cargo ship is in port, enjoying a much-needed rest after a 13-day journey covering more than 4,500 miles that began in St. Nazaire, France. On board are components for one of American’s newest Airbus A321neo aircraft, arriving for assembly at the Airbus U.S. Final Assembly Line.

Part 2: When two become one

It’s time to start putting the pieces of this 146-foot-long puzzle together. It takes more than 3,000 rivets and two days to join the front and rear fuselage sections. Even with all the modern technology that goes into aircraft production, hand-held tools are used to ensure precision assembly. Watch our Airbus A321neo take shape in the second in a series of five videos documenting the assembly of American’s A321neo.

Part 3: Getting our wings and a tail

Today, the neo earns her wings! The fuselage moves down the line and the wings are attached. With the addition of sharklets and LEAP-1A engines, the A321neo is 15% more fuel efficient than previous generation aircraft. The tail is also installed, giving the neo her first splash of red, white and blue. American’s A321neo is almost ready to take to the skies in the third video detailing her assembly.

Part 4: Interior design

As the Airbus A321neo continues to take shape, we move inside and focus on creature comforts. From lightweight galleys to spacious Airspace XL overhead bins, things on the inside are coming together – it’s just a matter of time before neo takes to the skies. Watch the fourth video in a series chronicling the assembly of American’s A321neo.

Part 5: Dress to impress

Before taking the runway, our new Airbus A321neo gets dressed to impress. It’s no easy feat, either. It takes 125 gallons of paint and eight days to get runway ready. Any guesses as to how many colors there are in American’s livery? Find out in the last video in our series documenting American’s A321neo assembly.

*Note: These videos were filmed before the COVID-19 pandemic.