FORT WORTH, Texas, April 25, 2024 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ:AAL) today reported its first-quarter 2024 financial results, including: Record first-quarter revenue of approximately $12.6 billion. First-quarter net loss of $312 million, or ($0.48) per diluted share. Excluding net special items1, first-quarter net loss of $226 million, or ($0.34) per diluted share. Achieved best-ever first-quarter completion factor. Generated operating cash flow of $2.2 billion and free cash flow2 of $1.4 billion in the first quarter. Reduced total debt3 by nearly $950 million in the first quarter. The company is now more than 80% of the way to its 2025 total debt reduction goal. "The American Airlines team continues to build a reliable, efficient and resilient airline," said American's CEO Robert Isom. "While we aren't satisfied with our first-quarter financial results, we have a strong foundation in place, and we remain on track to deliver on our full-year financial targets. Our team is running a fantastic operation, driving revenue through our commercial initiatives, efficiently managing costs, and producing free cash flow to further strengthen our balance sheet." Operational performanceAmerican is running the best operation in its history because of a steadfast commitment to operational excellence and strong collaboration across the entire airline. The company produced its best-ever first-quarter completion factor and improved its mishandled baggage rate year over year. American achieved these results despite air traffic control challenges and significant weather events across its network during the quarter. Financial performanceAmerican produced results within previously guided ranges for each of its operating metrics despite a significant increase in the cost of fuel in the quarter. The company generated record first-quarter revenue of approximately $12.6 billion and a GAAP operating margin of 0.1%. Excluding the impact of net special items1, American produced an operating margin of 0.6% in the first quarter. Balance sheetStrengthening the balance sheet remains a top priority for American. In the first quarter, the company reduced total debt3 by nearly $950 million and has now achieved more than $12 billion, or over 80%, of its goal of reducing total debt3 by $15 billion by the end of 2025. Guidance and investor updateBased on present demand trends and the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2024 adjusted earnings per diluted share4 to be between $1.15 and $1.45. The company continues to expect its full-year adjusted earnings per diluted share4 to be between $2.25 and $3.25. For additional financial forecasting detail, please refer to the company's investor update, furnished with this press release with the SEC on Form 8-K. This filing is also available at aa.com/investorrelations. Conference call and webcast detailsThe company will conduct a live audio webcast of its financial results conference call at 7:30 a.m. CT today. The call will be available to the public on a listen-only basis at aa.com/investorrelations. An archive of the webcast will be available through May 25. Notes See the accompanying notes in the financial tables section of this press release for further explanation, including a reconciliation of all GAAP to non-GAAP financial information and the calculation of free cash flow. The company recognized $86 million of net special items in the first quarter after the effect of taxes, which included operating net special items of $70 million, principally related to one-time charges resulting from the ratification of a new collective bargaining agreement for its passenger service team members represented by the CWA-IBT, as well as nonoperating net special items of $46 million for charges associated with mark-to-market net unrealized losses on certain equity investments. Please see the accompanying notes for the company's definition of free cash flow, which is a non-GAAP measure. All references to total debt include debt, finance and operating lease liabilities and pension obligations. Adjusted earnings per diluted share guidance excludes the impact of net special items. The company is unable to reconcile certain forward-looking information to GAAP as the nature or amount of net special items cannot be determined at this time. About American Airlines GroupTo Care for People on Life's Journey®. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company's stock is included in the S&P 500. Learn more about what's happening at American by visiting news.aa.com and connect with American @AmericanAir and at Facebook.com/AmericanAirlines. Cautionary statement regarding forward-looking statements and informationCertain of the statements contained in this report should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "project," "could," "should," "would," "continue," "seek," "target," "guidance," "outlook," "if current trends continue," "optimistic," "forecast" and other similar words. Such statements include, but are not limited to, statements about the company's plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on the company's current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, those set forth herein as well as in the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (especially in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors), and other risks and uncertainties listed from time to time in the company's other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which the company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. Corporate Investor American Airlines Group Inc. Condensed Consolidated Statements of Operations (In millions, except share and per share amounts) (Unaudited)                   3 Months Ended March 31,   Percent Increase       2024       2023     (Decrease)               Operating revenues:             Passenger   $ 11,458     $ 11,103     3.2   Cargo     187       223     (16.0 ) Other     925       863     7.2   Total operating revenues     12,570       12,189     3.1                 Operating expenses:             Aircraft fuel and related taxes     2,980       3,167     (5.9 ) Salaries, wages and benefits     3,867       3,281     17.8   Regional expenses:             Regional operating expenses     1,122       1,062     5.6   Regional depreciation and amortization     79       80     (1.3 ) Maintenance, materials and repairs     884       712     24.2   Other rent and landing fees     819       708     15.8   Aircraft rent     328       344     (4.8 ) Selling expenses     408       438     (6.8 ) Depreciation and amortization     470       486     (3.3 ) Special items, net     70       13     nm (1) Other     1,536       1,460     5.2   Total operating expenses     12,563       11,751     6.9                 Operating income     7       438     (98.5 )               Nonoperating income (expense):             Interest income     118       125     (6.2 ) Interest expense, net     (497 )     (540 )   (8.0 ) Other expense, net     (41 )     (6 )   nm   Total nonoperating expense, net     (420 )     (421 )   (0.2 )               Income (loss) before income taxes     (413 )     17     nm                 Income tax provision (benefit)     (101 )     7     nm                 Net income (loss)   $ (312 )   $ 10     nm                               Earnings (loss) per common share:             Basic   $ (0.48 )   $ 0.02       Diluted   $ (0.48 )   $ 0.02                     Weighted average shares outstanding (in thousands):             Basic     655,847       652,000       Diluted     655,847       656,707                                   Note: Percent change may not recalculate due to rounding.                       (1) Not meaningful or greater than 100% change.                           American Airlines Group Inc. Consolidated Operating Statistics (1) (Unaudited)                     3 Months Ended March 31,   Increase       2024   2023   (Decrease)                   Revenue passenger miles (millions)   57,473   52,014   10.5   % Available seat miles (ASM) (millions)   70,516   65,006   8.5   % Passenger load factor (percent)   81.5   80.0   1.5   pts Yield (cents)   19.94   21.35   (6.6 ) % Passenger revenue per ASM (cents)   16.25   17.08   (4.9 ) % Total revenue per ASM (cents)   17.83   18.75   (4.9 ) % Cargo ton miles (millions)   484   422   14.7   % Cargo yield per ton mile (cents)   38.64   52.75   (26.7 ) %                 Fuel consumption (gallons in millions)   1,042   965   8.0   % Average aircraft fuel price including related taxes (dollars per gallon)   2.86   3.28   (12.8 ) %                 Operating cost per ASM (cents)   17.82   18.08   (1.4 ) % Operating cost per ASM excluding net special items (cents)   17.72   18.06   (1.9 ) % Operating cost per ASM excluding net special items and fuel (cents)   13.49   13.18   2.3   %                 Passenger enplanements (thousands)   52,766   48,232   9.4   % Departures (thousands):               Mainline   290   275   5.6   % Regional   219   201   8.9   % Total   509   476   7.0   % Average stage length (miles):               Mainline   1,156   1,123   2.9   % Regional   465   469   (0.8 ) % Total   858   846   1.4   % Aircraft at end of period:               Mainline   967   931   3.9   % Regional (2)   550   533   3.2   % Total   1,517   1,464   3.6   % Full-time equivalent employees at end of period:               Mainline   103,600   103,100   0.5   % Regional (3)   29,200   27,700